Smith+Nephew
Third Quarter 2021 Trading Report
4 November 2021
Smith+Nephew (LSE:SN, NYSE:SNN), the global medical technology business, announces its trading results for the third quarter ended 2 October 20211.
Q3 Highlights2
- Q3 revenue of $1,266 million, up 5.5% on a reported basis and 2.3% underlying
- Orthopaedics revenue of $508 million down -0.7% reported and -5.9% underlying, reflecting impact of Delta variant in US and supply constraints
- Sports Medicine & ENT revenue of $379 million up 8.3% reported and 6.5% underlying, driven by continued strong joint repair performance and gradual recovery of ENT
- Advanced Wound Management revenue of $379 million up 12.1% reported and 10.9% underlying, with all sub-franchises growing
- Two out of three franchises, representing 60% of Group revenue, again delivered underlying revenue growth on pre-COVID 2019
Strategic and Operational Update
- Strengthening commercial model with Orthopaedics and Sports Medicine franchises brought under one leadership team to:
- Better address higher growth opportunities, including Ambulatory Surgery Centers
- Drive consistent excellence in commercial execution
- Build on Sports Medicine leadership and strong and innovative Orthopaedics portfolio
- Range of actions underway to address supply chain challenges
- Continued delivery of innovation pipeline; new cementless knee launched
Guidance
- On-track to deliver at the low end of full year guidance, reflecting impact of Delta variant and supply constraints
Roland Diggelmann, Chief Executive Officer, said:
“I'm pleased to see Advanced Wound Management and Sports Medicine & ENT deliver a second consecutive quarter of growth above 2019 levels, driven by strong commercial execution, investment in innovation and high-quality acquisitions. The performance of these franchises helped offset the near-term challenges in Orthopaedics. As committed, we are addressing the gap in our Orthopaedics portfolio, with the first surgeries taking place with our new cementless knee. In parallel we are making progress on supply chain.
“We see higher growth and more consistent execution opportunities from bringing our Sports Medicine and Orthopaedics franchises under one leadership team, which we've announced today. This will build on our unique strengths to support customers looking for a combined portfolio approach, while continuing to serve those focused on just one surgical discipline. We believe this change is another important step as we continue to recapture our pre-COVID momentum.”