- Smith & Nephew Plc (NYSE: SNN) reported Q2 revenue of $1.29 billion, up 1.2% on an underlying basis but down 3.1% on a reported basis, including a 430 basis point foreign exchange headwind.
- Orthopedics revenue declined 1.1%, or by 4.9% on a reported basis, reflecting execution and supply chain challenges.
- Sports Medicine and ENT were up 1.9%, but down 2.4% on a reported basis, with growth “significantly impacted” by the Covid-related lockdown in China.
- Advanced wound management grew 3.8% but fell 1.3% on a reported basis, with all regions and segments contributing.
- Its operating profit margin was 9.3%, compared to 9.2% a year ago, while EPS slipped to 20.2 cents from 23.4 cents.
- The company’s 1H trading profit totaled $440 million, down from $459 million, as the margin declined from 17.6% to 16.9%, reflecting higher input inflation.
- Guidance: Smith & Nephew unchanged full-year underlying revenue growth guidance of 4.0% - 5.0%.
- Meanwhile, its trading profit margin was expected to be around 17.5%, reflecting a prolonged inflationary impact and continued external supply challenges.
- “After only a few months at Smith & Nephew it is clear to me that we have many more opportunities than challenges,” said CEO Deepak Nath.
- Nath said orthopedics continued to be held back by execution and supply chain challenges.
- Price Action: SNN shares are down 10.30% at $26.32 during the market session on the last check Thursday.
Read at Benzinga