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1 August 2013 -- Smith & Nephew plc (LSE: SN, NYSE: SNN), the global medical technology business, announces its results for the second quarter ended 29 June 2013.
Q2 Highlights
- Revenue of $1,074 million, up 3% on an underlying basis
- Trading profit of $232 million, with trading profit margin of 21.6% in-line with expectations
- EPSA was 18.0¢ (2012: 17.9¢)
- Advanced Wound Management strongly outperformed the market, driven by Bioactives and NPWT
- Advanced Surgical Devices delivered a good quarter in Sports Medicine Joint Repair
- Continued strong double digit growth in the Emerging and International Markets, with an acquisition underway in Turkey to further strengthen the platform
- Interim dividend of 10.4¢ per share, up 5% (2012: 9.9¢)
- Share buy-back programme underway with $75 million spent to date
Commenting, Olivier Bohuon, Chief Executive Officer of Smith & Nephew, said:
“The on-going implementation of our Strategic Priorities underpinned our performance in the quarter. We generated stand-out contributions from our areas of focused investment in the Emerging and International Markets and Negative Pressure Wound Therapy. As expected Orthopaedic Reconstruction had a slow quarter and we anticipate a better second half. Our major acquisition, Healthpoint Biotherapeutics, completed an excellent first six months as a Smith & Nephew business.
“Through the share buy-back programme and interim dividend we are delivering enhanced returns to our shareholders today. At the same time we continue to invest in the business, both for organic growth and enhancing our platform through agreed acquisitions in India, Brazil and now in Turkey. We are confident that our actions are reshaping the Group for further success.”
Analyst presentation and conference call
An analyst presentation and conference call to discuss Smith & Nephew’s second quarter results will be held at 8.00am GMT/9.00am BST/4.00am EST today, Thursday 1 August. This will be broadcast live on the company’s website and will be available on demand shortly following the close of the call at http://www.smith-nephew.com/Q213. During the presentation a listen-only service will be available by calling +44 (0) 20 3427 1901 in the UK or +1 212 444 0412 in the US (passcode 5285751). Analysts should contact Jennifer Heagney on +44 (0) 20 7960 2255 or by email at jennifer.heagney@smith-nephew.com for conference call details.
1 Unless otherwise specified as ‘reported’ all revenue growths throughout this document are underlying increases/decreases after adjusting for the effects of currency translation, and inclusion of the comparative impact of acquisitions and exclusion of disposals. See note 3 to the interim financial statements for a reconciliation of these measures to results reported under IFRS.
2 A reconciliation from operating profit to trading profit is given in note 4 to the interim financial statements. The underlying growth in trading profit is the growth in trading profit after adjusting for the effects of currency translation, inclusion of the comparative impact of acquisitions and exclusion of disposals.
3 Adjusted earnings per ordinary share (“EPSA”) growth is our reported trend measure and is stated before acquisition related costs, restructuring and rationalisation costs, amortisation of acquisition intangibles, profit on disposal of net assets held for sale and taxation thereon. See note 2 to the interim financial statements.
4 Earnings per share for the three month period and half year ended 30 June 2012 have been restated following the adoption of the revised IAS 19 Employee Benefits standard. As a result of the restatement, basic and adjusted basic earnings per share for the three months ended 30 June 2012 were reduced by 0.3¢ and 0.2¢ respectively and for the six month period ended 30 June 2012 both reduced by 0.5¢. See note 1 to the interim financial statements.
5 All numbers given are for the quarter ended 29 June 2013 unless stated otherwise.
6 References to market growth rates are estimates generated by Smith & Nephew based on a variety of sources.
Enquiries
Investors
Phil Cowdy +44 (0) 20 7401 7646
Smith & Nephew
Media
Charles Reynolds +44 (0) 20 7401 7646
Smith & Nephew
Andrew Mitchell / Justine McIlroy +44 (0) 20 7404 5959
Brunswick
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