Smith & Nephew lifts FY guidance as third-quarter revenue rises

In an update for the three months to 28 September, the company said underlying revenue was up 4%, while reported growth was 6.5% as the benefits of acquisitions offset a 140 basis points currency headwind.

The orthopaedics business saw 3.4% revenue growth, while the sports medicine and ENT division delivered 6.9% revenue growth during the quarter. Revenue in advanced wound management was up 2.1%, an improvement on the second quarter, the company said.

The emerging markets business remained strong, with revenue up 16%, led by a "stand-out" performance in China, while Osiris delivered a second quarter of double-digit growth following acquisition.

The group lifted its guidance for full-year underling revenue growth by 50 basis points to between 3.5% and 4.5%. However, it also cautioned that 2019 trading profit margin will be around 22.8%, which is at the lower end of the previously guided range. S&N said this reflects the decision to continue to invest in opportunities to support medium-term growth, dilution from acquisitions, and a small foreign exchange headwind in the second half of the year.

Chief financial officer Graham Baker said: "We're pleased to have delivered organic revenue growth of 4% in the third quarter, a further step towards growing at or above our markets.

"We've built momentum across the first nine months of the year and, at the same time, continued to invest behind our commercial teams and acquisitions to support sustained success over the medium-term. As a result, we're confident to increase 2019 revenue guidance again."