Smith & Nephew’s underlying revenue grew 4.0% to $1.4bn in the third quarter. Growth in all three of its business units (Orthopaedics, Sports Medicine & ENT, and Advanced Wound Management) were below market expectations. This comes as volume purchasing pressures from China continue to weigh on performance.
As a result, full-year underlying revenue guidance has been lowered to 4.5% growth (previously 5-6%).
Full-year trading profit margin (underlying EBITA) guidance has also been lowered from at least 18%, to between 17.5-18% driven by slower revenue growth. The 2025 trading profit margin target has also been cut to 19-20%, down from around 20% previously.
The shares fell 13.9% in early trading.
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Smith & Nephew key facts
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