Smith and Nephew, the medical technology business reported steady revenue today growth despite ‘headwinds’ in China slowing down its 12-point growth plan.
The FTSE 100-listed firm said its fourth-quarter revenue was $1.5bn (£1.2bn) representing underlying growth of 6.4 per cent compared to the previous year.
Full-year revenue hit $5.6bn (£4.4bn), up 7.3 per cent on the previous year, on an underlying basis.
It wasn’t all plain sailing for the medical tech giant, however, with operating profit for the year falling to $425m (£335m), from $450m (£356m).
The firm noted significant underlying growth in a few key areas, including orthopaedics up 5.7 per cent, and sports medicine up 10 per cent. It also reported an improvement in advanced wound management, which grew 6.4 per cent.
Smith and Nephew said cash generated from operations during 2023 increased significantly to $829m (£653m), from $581m (£458m) in 2022, with its trading cash flow improving too.
Looking ahead to the coming year, the positives are “expected to more than offset headwinds including continuing inflation”, and the slowdown in China.
For 2024, it said guidance was expected to be in the range of 5-6 per cent, up from 4.6-5.6 per cent, previously reported, while its trading profit was expected to be around 18 per cent.
Deepak Nath, Chief Executive Officer, said: “I am pleased with our overall performance in 2023, as our actions to transform Smith+Nephew have begun to translate into meaningful financial outcomes. We delivered revenue growth ahead of guidance for the full year and made important improvements to our trading profit margin against a challenging macro-environment.
“Our 12-Point Plan is on track. While there is more to do to enhance our performance in US reconstruction, our Orthopaedics business is progressing along a clear improvement path.
“Our investment in innovation continues to deliver, with almost half of our 2023 growth coming from products launched in the last five years. We were pleased to add major launches in robotics, shoulder arthroplasty and negative pressure wound therapy to the portfolio during the year.
“We have entered 2024 as a fundamentally stronger business and look forward to delivering another year of robust growth and further margin expansion.”
Smith and Nephew’s share price has fallen around six per cent over the past 12 months.