Smith & Nephew H1 profits come in ahead of expectations

1st Aug 2024 09:05

(Sharecast News) - Medical equipment manufacturer Smith & Nephew said on Thursday that interim profits had come in ahead of market expectations, thanks in no small part to the company's 12-point turnaround plan.

Smith & Nephew said first-half revenues were up 4.3% at $2.8m, while operating profits rallied 19.5% to $328.0m and trading profits were almost 13% higher at $471.0m.

Cash generated from operations rose from $215.0m in H123 to $368.0m in H124 as S&N made marked improvements in trading cash flow conversion, rising to 60% from 26% at the same time a year earlier.

The FTSE 100-listed group credited much of its improved performance to its 12-point plan, which includes winning market share and fixing its orthopaedics division, as well as regaining momentum across its robotics, trauma, and knee and hip implant units.

Chief executive Deepak Nath said: "Today's results are further evidence of the good progress we are making transforming Smith & Nephew into a higher growth and more profitable business.

"The methods we employed in achieving these successes give me confidence that we will also turn around US hip and knee Implants and we expect to see a step up through the second half of the year."

As of 0900 BST, S&N shares were up 7.48% at 1,207.0p.

Reporting by Iain Gilbert at Sharecast.com