Smith and Nephew revenue flat while full year profit dips

Smith & Nephew’s full year revenue has remained flat for the year to 31 December 2015, while reported operating profit dipped.

The FTSE 100 medical device company said full year revenue was $4.634bn (£3.172bn), flat compared to 2014’s revenue of $4.617bn.

Underlying growth was 5% for the year, but was hit by foreign exchange movement. Revenue in the fourth quarter was also flat at $1.257bn, also hit by foreign exchange.

The company reported 6% sales growth in established markets, while emerging markets grew 2%.

However reported operating profit fell from $749m to $628m for the year, and its operating margin fell from 16.2% to 13.6%.

The company has proposed a full year dividend of $0.308 per share, up 4% compared to 2014.

Chief executive Olivier Bohuon said the group has finished the year strongly, “led by an excellent quarter in the US across Sports Medicine, Knee Implants and our Advanced Wound Management businesses”.

"For the full year we delivered higher underlying revenue growth, trading profit margin and adjusted earnings year-on-year.

“Our strategy is producing an improved performance through focused innovation, better commercial execution and greater efficiency.”

Bohuon said the company expects to deliver continued underlying revenue growth in 2016, boosted by investments in existing businesses, acquisitions and pioneering technologies.

Shares in the company were down 5p (0.45%) to 1,111.00 at 0841 GMT.