Smith & Nephew (SN.) put in a defensive, if flat, first-quarter performance as the hip and joint maker attempted to offset slow growth in its core markets in the US and Europe with an expansion into emerging markets. Fundamentally, given the weighting of the business, a return to growth in developed markets is what the company needs.
Revenues for the quarter were up by an underlying 1 per cent at $1.07bn (£633m), with operating profits largely unchanged at $207m. The breakdown of sales showed how tough trading is in the company's core markets - the advanced surgical devices segment, which contains most of its hip and knee products, saw sales fall by 2 per cent to $760m as Europe proved to be a drag on revenues. By contrast, wound management revenues were boosted by emerging markets and sales were up 12 per cent to $315m.
