Highlights1,2
· Q1 revenue $1,264 million (2020: $1,134 million) up 11.5% on a reported basis and 6.2% on an underlying basis
o Reported growth includes benefits of 3.4% from foreign exchange and 1.9% from acquisitions
o Q1 included two more trading days than the equivalent 2020 period
· All three global franchises returned to growth on a reported and underlying basis
o Orthopaedics revenue up 1.6% underlying, with strong growth in Hip Implants and Trauma & Extremities offset by anticipated weaker performance in Knee Implants
o Sports Medicine & ENT revenue up 10.4% underlying, driven by the return of elective surgeries in an outpatient setting
o Advanced Wound Management revenue up 9.3% underlying, benefitting from improved commercial execution
· Established Markets revenue was up 3.4% underlying, with US up 7.1% offset by a -1.8% decline from Other Established Markets, mainly due to COVID impact in Europe
· Emerging Markets revenue was up 21.8% underlying, with China rebounding strongly from COVID impact in prior year
Outlook
· Full year 2021 guidance reinstated
o Targeting underlying revenue growth in range of 10.0% to 13.0%; and
o Trading profit margin in range of 18.0% to 19.0%
o Guidance assumes improvement in conditions through the year, with surgery volumes largely unconstrained by COVID in second half
Roland Diggelmann, Chief Executive Officer, said:
“Our first priority for 2021 is to return to growth and recapture our pre-COVID momentum, and we are encouraged by our early progress through Q1. This was driven not only by surgery volumes moving towards more normal levels in many markets, but also the benefits from better commercial execution, acquired assets, and recent product launches.
“Looking ahead, there is improving visibility as vaccine programmes roll out and healthcare systems reopen. Our approach through 2020 to maintain investment is already demonstrating value and I look forward to seeing further evidence of this as the recovery continues.”