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Smith & Nephew Plc - Latest Trading Statement

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Smith+Nephew Third Quarter 2020 Trading Report

A significantly stronger quarter as US returned to growth

29 October 2020

Smith+Nephew (LSE:SN, NYSE:SNN), the global medical technology business, announces its trading results for the third quarter ended 26 September 20201.

Highlights2

  • Q3 revenue of $1,200 million down -3.7% on a reported basis and -4.2% underlying, a significant recovery from Q2 underlying decline of -29.3%
  • US returned to growth, up 0.9% on an underlying basis, offset by -6.2% decline from Other Established Markets
  • Emerging Markets declined -14.5%, with growth in China offset by COVID-19 impacts in LATAM and India
  • All three franchises delivered improved performances over Q2; with Orthopaedics down -2.8%, Sports Medicine & ENT -4.5% and Advanced Wound Management -6.1% year-on-year
  • Continued progress delivering strategic imperatives including major product launches
  • Full Year guidance remains withdrawn as nature and scope of any new restrictions to control COVID-19 through year end are not known

Post-quarter events

  • Agreement to acquire Extremity Orthopaedics business of Integra LifeSciences Holdings Corporation for $240 million, expanding portfolio in higher-growth extremities segment
  • Successful debut $1 billion US bond issue provides attractive long-term funding to invest in delivering the Group's strategic imperatives

Roland Diggelmann, Chief Executive Officer, said:

"I am pleased with our progress in the third quarter and how the business and our employees have responded to challenging circumstances. We were well prepared as global levels of elective surgery recovered and delivered a substantial improvement in performance over the previous quarter, led by growth in both the US and China, our two largest markets.

"At the same time we have continued our work to transform the Group. We launched multiple new innovative products and announced an acquisition that will strengthen our position in the rapidly growing extremities segment."