Smith+Nephew misses on profit as hospitals focus on critical care

Medical products maker Smith+Nephew has posted a lower than expected first half profit as patients and hospitals delayed elective surgeries to replace hip and knee joints during the coronavirus crisis to focus on critical care instead.
By Ros Snowdon
Published 29th Jul 2020, 08:13 BST
Updated 29th Jul 2020, 08:18 BST
Roland Diggelmann, Smith+Nephew's chief executiveRoland Diggelmann, Smith+Nephew's chief executive
Roland Diggelmann, Smith+Nephew's chief executive

Trading profit in the six months to June 27 fell to £133m from £411m last year, while sales were down 19 per cent on an underlying basis.

Analysts were expecting a first half profit of £174m on average, according to a company compiled consensus of nine analysts. Smith+Nephew, which has an advanced wound care management division in Hull, said the business was hit by Government led restrictions to control Covid-19

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Roland Diggelmann, Smith+Nephew's chief executive, said: "I am proud of the way all at Smith+Nephew have managed the pressure of the Covid-19 crisis. We have continued to serve our customers throughout, and were ready as lockdown restrictions eased, delivering an improving performance across the second quarter.

"At the same time, we have taken measures to ensure the group emerges from this crisis as strongly as possible. These include maintaining our R&D investment, launching new products, protecting jobs, and managing our cost base.

"There remain many uncertainties as countries continue to battle Covid-19, but with our unique portfolio, proven strategy, strong balance sheet and motivated workforce we are ready to take advantage as markets recover."

Related topics:GovernmentHullCovid-19