Wound care drives Smith & Nephew growth

The company, which has it woundcare division headquartered in Hull, posted adjusted earnings per share of 18.1 cents on revenue of $1,077m (£661.8m), both slightly ahead of analyst forecasts.

Its Advanced Wound Management arm grew revenues by eight per cent to $258m, beating the estimated global market rate of three per cent. European revenues grew by two per cent to $125m and US revenues grew by 14 per cent, where S&N said its negative pressure therapy continues to build momentum with significant contract wins from hospitals.

Smith & Nephew’s orthopaedics division grew revenue by four per cent in the second quarter, outperforming a flat market, on demand for its knee products and said it would continue to take share from rivals.

Smith & Nephew saw seven per cent growth in its knee franchise, part of its orthopaedics division. There, its products offer a 30-year guarantee, and the growth offset weakness in hips, which has been hit by controversy about metal-on-metal technology, and where revenue was flat in the quarter.

The company kept its guidance unchanged, saying it expected revenues in orthopaedic reconstruction, sports medicine and wound management to grow at above the market rate, and to sustain a better performance in orthopaedic trauma.

Rival Stryker said last month that demand for orthopaedic devices remained sluggish, hurt by the ongoing economic slowdown as patients, reluctant to take time off work, postpone procedures. Zimmer, however, pointed to stronger growth outside the United States when it raised it outlook after second-quarter numbers.

Smith & Nephew is paying an interim dividend of 6.6 cents a share, up 10 per cent on the payout a year ago.