Orthopedics revenue declined 1.1%, or by 4.9% on a reported basis, reflecting execution and supply chain challenges.
Sports Medicine and ENT were up 1.9%, but down 2.4% on a reported basis, with growth “significantly impacted” by the Covid-related lockdown in China.
Advanced wound management grew 3.8% but fell 1.3% on a reported basis, with all regions and segments contributing.
Its operating profit margin was 9.3%, compared to 9.2% a year ago, while EPS slipped to 20.2 cents from 23.4 cents.
The company’s 1H trading profit totaled $440 million, down from $459 million, as the margin declined from 17.6% to 16.9%, reflecting higher input inflation.
Guidance: Smith & Nephew unchanged full-year underlying revenue growth guidance of 4.0% - 5.0%.
Meanwhile, its trading profit margin was expected to be around 17.5%, reflecting a prolonged inflationary impact and continued external supply challenges.
“After only a few months at Smith & Nephew it is clear to me that we have many more opportunities than challenges,” said CEO Deepak Nath.
Nath said orthopedics continued to be held back by execution and supply chain challenges.
Price Action: SNN shares are down 10.30% at $26.32 during the market session on the last check Thursday.
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