Smith+Nephew reports 4% revenue increase in Q3 2024

Smith+Nephew (NYSE:SNN) posted a 4% year-on-year revenue growth for the third quarter of 2024, reaching $1.41 billion, primarily driven by a robust 6.5% rise in its Advanced Wound Management division.

Orthopaedics revenue also grew by 2.3% (2.4% reported), and Sports Medicine & ENT recorded a 3.9% increase (3.7% reported). 

The company credits this growth to the successful execution of its 12-Point Plan, aimed at improving performance across divisions, although significant headwinds in China posed challenges to overall growth.

In light of the year-to-date performance, Smith+Nephew adjusted its outlook for 2024.

The company now expects underlying revenue growth to reach 4.5%, down from an earlier forecast of 5% to 6%.

Additionally, the trading profit margin forecast has been revised, with anticipated growth of up to 50 basis points, compared to the previous year's 17.5%.

This change, previously projected at a minimum of 18%, reflects reduced operating leverage amid slower revenue growth.