The British orthopedic and sports medicine products company also announced that CFO Anne-Françoise Nesmes will step down during the second quarter of 2024 and that the board has initiated an external search for a successor.
Revenue was already up 6.6% year-over-year to nearly $1.3 billion in Q2 2023 and up 5.2% to $2.7 billion in the first half of the year. Trading profit was down 5.5% year-over-year to $417 million during H1, with the trading profit margin down 1.6 percentage points year-over-year to 15.3%.
“I am pleased to report strong first-half revenue growth across our business. The continued outperformance in Sports Medicine and Advanced Wound Management – representing 60% of our business – has continued. In Orthopaedics, our actions to improve product supply and execution have increased our ability to benefit from strong elective procedure volumes. Overall, these results have given us the confidence to increase our full-year revenue growth guidance,” Smith+Nephew CEO Deepak Nath said in a news release.
Even though the revenue guidance is up, the full-year trading profit margin guidance will stay the same, with expectations that it will come in at 17.5%.
“Margin development in the first half was in line with our expectations. In the second half, we expect a clear step up in both trading margin and cash generation as we begin to see the benefit of productivity gains and start bringing down inventory levels, Nath said.
Investors were apparently looking for more. SN shares in London closed the day down more than 2% at 1,120.50 pence. SNN shares on the NYSE were down more than 2% to $28.47 apiece by midday trading today. MassDevice‘s MedTech 100 Index was down slightly.
Smith+Nephew begins search for a new CFO
Nesmes joined S+N as CFO in 2020. Previous CFO roles were at Merlin Entertainments and Dechra Pharmaceuticals. Her 16 years at GlaxoSmithKline included SVP of Global Vaccines.
“It has been a privilege to work alongside Deepak and the leadership team, and I have every confidence that Smith+Nephew is on a path to stronger performance. Given our progress, I feel now is the right moment to reflect and consider my next professional challenge. I would like to thank my colleagues for their strong support and dedication, and remain fully committed to continuing our work together until I leave next year,” Nesmes said in a separate news release.
Said Nath: “She was instrumental in helping the Group navigate the financial challenges of the pandemic and in laying the foundation for our transformation under the 12-point plan. On a personal note, I have been very grateful for her support and counsel, which I know will continue over the coming months. When the time comes, she will leave Smith+Nephew with our best wishes.”
