Smith & Nephew Posts Q1 Sales Growth As Elective Procedures Rebound

Smith & Nephew PLC SNN posted Q1 revenue of $1.31 billion, up 3.3% on a reported basis (including -2.6% currency effect) and up 5.9% on an underlying basis.
Sports Medicine & ENT revenue up 8.6% underlying. Advanced Wound Management revenue up 8.0% underlying and Orthopedics revenue up 2.6% underlying
Established Markets revenue was up 4.1% underlying, as elective surgery volumes recovered from omicron impact at the start of the quarter.
Emerging Markets revenue was up 14.3% underlying, with double-digit growth across India, the Middle East, Africa, and Latin America.
The performance in the year so far has provided confidence in its previously announced full-year guidance, with expectations of underlying revenue growth between 4.0% to 5.0%, or 1.3% to 2.3% on a reported basis.
"For trading profit margin, we are targeting around 50bps of expansion in 2022. This will be driven by efficiencies from operating leverage and productivity and improvement in the margin of acquired assets that will more than offset significant anticipated headwinds from input cost inflation and China VBP implementation," the company said.
Price Action: SNN shares are up 4.78% at $33.08 during the market session on the last check Thursday.

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