05.11.15
Smith & Nephew plc's fiscal year is off to a good start.
Revenue at the United Kingdom-based orthopedic device behemoth climbed 3 percent in the first quarter to $1.10 billion, driven by impressive gains in emerging markets and sports medicine/trauma. Smith & Nephew generated $172 million from emerging markets in the first quarter (ended March 28), a 22 percent increase compared with the same period last year. Sports medicine/trauma/other sales swelled 5 percent to $454 million.
Fluctuating exchange rates impacted first-quarter proceeds by 8 percent, but the loss was offset by an 8 percent benefit from acquisitions, executives said.
Revenue at the United Kingdom-based orthopedic device behemoth climbed 3 percent in the first quarter to $1.10 billion, driven by impressive gains in emerging markets and sports medicine/trauma. Smith & Nephew generated $172 million from emerging markets in the first quarter (ended March 28), a 22 percent increase compared with the same period last year. Sports medicine/trauma/other sales swelled 5 percent to $454 million.
Fluctuating exchange rates impacted first-quarter proceeds by 8 percent, but the loss was offset by an 8 percent benefit from acquisitions, executives said.
“We are pleased with our start to 2015 and are on track to make further progress during the year. In particular, we increased Q1 revenue by 22 percent (underlying growth) across the emerging markets and delivered 9 percent growth in sports medicine joint repair. We completed the integration of ArthroCare and the expected benefits of our strong combined sports medicine portfolio are starting to come through," CEO Olivier Bohuon said. "In Reconstruction, strong sales of our Journey II Knee System drove 3 percent growth in U.S. knee Implants, and, through our actions, we delivered an improved advanced wound care performance.”
The company's Sports Medicine, Trauma and Other division outperformed its brethren, with sports medicine joint repair products propelling much of the growth. Sales from arthroscopic enabling technologies slipped 2 percent to $140 million (a 30 percent increase in reported growth), while trauma and extremities revenue remained flat at $123 million. Other surgical business sales jumped 11 percent (163 percent on a reported basis) to $47 million due mainly to spikes in ear, nose and throat as well as gynecological product sales, Smith & Nephew reported. Executives attributed the decrease in arthroscopic enabling technologies to an expected reduction in royalties for the previous generation of radiofrequency technology. Trauma and extremities products benefitted mostly from the introduction of the Evos Mini Plating System.
Reconstruction sales climbed 1 percent (but slid 6 percent on a reported basis) to $360 million compared with Q1 2014. Hip revenue was the albatross, slipping 1 percent (9 percent on a reported basis) to $151 million. Knee sales rose 2 percent (but fell 4 percent on a reported basis to $209 million. Executives attributed the growth in knee sales to 3 percent growth in the United States of the Journey II Total Knee System.
Overall advanced wound management proceeds increased 1 percent to $290 million (but fell 8 percent on a reported basis), with a 27 percent loss in advanced wound device profits offsetting any real gains in the division. The company blamed the loss on a U.S. distribution hold on its Renasys product line. Advanced wound care product sales grew 9 percent to $178 million, and advanced would bioactive revenue increased 5 percent to $75 million.
The 1 percent gain in U.S. sales ($510 million) was somewhat offset by a 2 percent decline "other established markets" proceeds (Australia, Canada, Europe, Japan and New Zealand). Smith & Nephew posted $422 million in total sales in the latter category.
The company's Sports Medicine, Trauma and Other division outperformed its brethren, with sports medicine joint repair products propelling much of the growth. Sales from arthroscopic enabling technologies slipped 2 percent to $140 million (a 30 percent increase in reported growth), while trauma and extremities revenue remained flat at $123 million. Other surgical business sales jumped 11 percent (163 percent on a reported basis) to $47 million due mainly to spikes in ear, nose and throat as well as gynecological product sales, Smith & Nephew reported. Executives attributed the decrease in arthroscopic enabling technologies to an expected reduction in royalties for the previous generation of radiofrequency technology. Trauma and extremities products benefitted mostly from the introduction of the Evos Mini Plating System.
Reconstruction sales climbed 1 percent (but slid 6 percent on a reported basis) to $360 million compared with Q1 2014. Hip revenue was the albatross, slipping 1 percent (9 percent on a reported basis) to $151 million. Knee sales rose 2 percent (but fell 4 percent on a reported basis to $209 million. Executives attributed the growth in knee sales to 3 percent growth in the United States of the Journey II Total Knee System.
Overall advanced wound management proceeds increased 1 percent to $290 million (but fell 8 percent on a reported basis), with a 27 percent loss in advanced wound device profits offsetting any real gains in the division. The company blamed the loss on a U.S. distribution hold on its Renasys product line. Advanced wound care product sales grew 9 percent to $178 million, and advanced would bioactive revenue increased 5 percent to $75 million.
The 1 percent gain in U.S. sales ($510 million) was somewhat offset by a 2 percent decline "other established markets" proceeds (Australia, Canada, Europe, Japan and New Zealand). Smith & Nephew posted $422 million in total sales in the latter category.