Smith & Nephew grows profits and margins

Full-year figures for Smith & Nephew (SN.) belie the group’s share price performance over the same period. The manufacturer of medical devices beat guidance on the sales front despite an unfavourable currency adjustment. It also registered a 7.6 per cent increase in adjusted operating profit – ex-restructuring, M&A, and amortisation costs – to $970mn (£764mn). The related underlying margin increased by 20 basis points to 17.5 per cent and management forecasts that it will reach at least 18 per cent in the current year.