Smith+Nephew Maintains Full-Year Guidance After Q1 Results

Smith+Nephew maintained its full year 2024 guidance after reporting a 2.9% revenue increase in Q1 2024.
 
The U.K.-based company posted $1.39 billion of revenue in Q1. Smith+Nephew forecasts revenue to grow 5-6% in fiscal year 2024 with a trading margin of at least 18%.
 
“Revenue growth in the first quarter was driven by solid performance in our Orthopaedics and Sports Medicine & ENT businesses, partially offset by some anticipated softness in Advanced Wound Management,” Smith+Nephew CEO Deepak Nath said in a press release.
 
Orthopaedics revenue was up 4.4% to $567 million for the quarter, with growth in hip and knee implants outside the U.S. The company said Other Reconstruction and Trauma & Extremities growth was driven by its 12-point plan improvements. Continued weakness was reported in U.S. hip and knee implant sales.
 
Sports Medicine & ENT sales rose 5.5% to $441 million thanks to strong performance from Sports Medicine Joint Repair. This was supported by prior-year product launches and Regeneten’s expansion, according to Smith+Nephew.
 
Advanced Wound Management posted the only loss, falling 2% to $378 million. Smith+Nephew cited Advanced Wound Bioactives decline due to expected SANTYL volatility after a strong Q4 2023 as the reason, despite sustained growth of Advanced Wound Devices sales.
 
“Our 12-Point Plan is on-track and the progress in Orthopaedics was again evident from the strong growth across most segments, and we expect the remainder to improve as the year progresses,” said Nath. “We are confident in our outlook and look forward to all three of our business units contributing as we deliver another year of strong revenue growth.”

Smith+Nephew Q1 2024 Highlights

• Closed acquisition of CartiHeal, developer of Agili-C knee cartilage regeneration
• Launched the Aetos shoulder in the U.S.
• Began an R&D agreement with the U.S. Army Institute of Surgical Research (USAISR)
• Became Preferred Sports Medicine Technology Partner of mixed martial arts organization UFC
• Released promising trial results for its Regeneten bioinductive implant