
Smith + Nephew Focuses on Robotic Tool Expansion in Orthopedics/Trauma; Notes Some Elective Procedure Slowing Following the Post COVID-19 Catch Up
11-6-23 (by: Scott Gleason) Smith+Nephew has reported its third-quarter 2023 earnings with revenues reaching $1,357 million, representing 8.5% revenue growth compared to the same quarter in 2022. Management noted that while there has been some market slowing in the third quarter relative to the first half of the fiscal year, overall market conditions are still strong.
The Orthopedics segment experienced an improved 8.3% increase in revenue, driven by various product launches and in particular, the Trauma & Extremities category showed strong growth. The company noted that without China orthopedic implant growth would have been 3% higher and Trauma & Extremities growth would have been four percent higher. Similarly, the Sports Medicine & ENT segment reported 11.1% growth, which was sustained across most markets, with the exception being China. ENT growth was 40% driven by the core tonsil and adenoid business with much of the strength driven by the post COVID-19 recovery in surgical volumes for these conditions. The Advanced Wound Management segment recorded revenue growth of 3.6%, with notable double-digit growth coming from the company’s negative pressure portfolio. However, the Advanced Wound Bioactives segment was slower this quarter.
The company noted that it continues to invest in robotics and that they ended the quarter with 25% of knee procedures utilizing a robot in surgery utilizing the Company’s CORI Surgical system comprising pre-operative planning software, advanced handheld robotic surgical tools, and post-surgery patient monitoring apps.
The company now anticipates that underlying revenue growth will likely fall toward the higher end of its guided range of 6.0% to 7.0% growth. From an operating profit margin, Smith+Nephew now expects it to be around 17.5% for the year, considering headwinds primarily related to the Chinese market.
Smith+Nephew’s CEO, Deepak Nath, expressed optimism about the company’s progress, highlighting that the steps taken to transform the company into a higher-growth enterprise are starting to yield results. Investment in innovation, with the launch of products like the AETOS Shoulder System and the REGENETEN Bioinductive Implant, were adding to growth. Additionally, the company is preparing to launch the RENASYS EDGE negative pressure wound therapy in the US.