Smith & Nephew sees revenue growth in sports medicine and ear, nose and throat franchises
Smith & Nephew reported revenue growth in two out of three franchises in the third quarter of 2021, according to a trading report.
The company reported $1.266 million in revenue, an increase of 5.5% on a reported basis.
Orthopedics revenue saw a –0.7% reported and a –5.9% decrease underlying. These decreased percentages reflect the impact of the COVID-19 delta variant in the U.S. and supply constraints, according to the report.
The other two franchises experienced growth on a reported and underlying basis – sports medicine and ear, nose and throat (ENT; 8.3% and 6.5%) and advanced wound management (12.1% and 10.9%.)
These franchises, representing 60% of group revenue, “again delivered underlying revenue growth on pre-COVID 2019,” according to the release.
To strengthen its commercial model with its orthopedics and sports medicine franchises, Smith & Nephew has brought these sectors together under one leadership team to help “better address higher growth opportunities, ” “drive consistent excellence in commercial execution” and “build on sports medicine leadership and strong and innovative orthopedics portfolio,” as stated in the report.
The company attributes their low-end delivery of full-year guidance to the impact of the delta variant and supply constraints.
“I’m pleased to see advanced wound management and sports medicine & ENT deliver a second consecutive quarter of growth above 2019 levels, driven by strong commercial execution, investment in innovation and high-quality acquisitions. The performance of these franchises helped offset the near-term challenges in orthopedics,” Roland Diggelmann, CEO of Smith & Nephew, said in the release. “We see higher growth and more consistent execution opportunities from bringing our sports medicine and orthopedics franchises under one leadership team, which we’ve announced today. This will build on our unique strengths to support customers looking for a combined portfolio approach, while continuing to serve those focused on just one surgical discipline. We believe this change is another important step as we continue to recapture our pre-COVID momentum.”