Smith & Nephew has raised its full-year sales forecasts and said it remains confident of hitting its margin targets despite profits falling during the first half of the year.
Revenues at the FTSE 100 medical equipment maker rose to $2.7 billion in the six months to July 1, up 7.3 per cent on an underlying basis, better than City forecasts.
An increase in orthopaedic procedures as the company clears through a pandemic-induced backlog and the adoption of robotics helped lift sales.
Trading profit, however, fell to $417 million from $440 million a year earlier, behind the consensus forecasts of analysts, with margins shrinking to 15.3 per cent from 16.9 per cent, which the company said was due to higher input inflation, foreign exchange headwinds and increased marketing.
It reiterated its profit guidance for the full year of margins of at least 17.5 per cent and raised its revenue growth range to between 6 per cent and 7 per cent, up from 5 per cent to 6 per cent.
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Source: The Times
Date: 7 August