Britain’s ageing population and rising number of active retirees means hip and knee surgery is on the rise. That’s good news for Smith & Nephew (SN.) which makes those replacement joints. Better-than-expected demand in the third quarter means the group’s annual profit margins are now likely to be higher than previously expected.
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Analysts at Investec said the growth in the hips and knees business suggests Smith & Nephew is taking market share and reeling in the rewards of years of investment in its portfolio. Overall revenue growth was restricted by the performance in Europe, but the emerging markets and US continue to accelerate.
