The market responded positively to news that Smith & Nephew’s (SN.) first-quarter revenue increased by 4.4 per cent on an underlying basis, after negative foreign-exchange translations are discounted.
The medical devices group revealed that revenue growth would be in the upper half of its guided range of 2.5 per cent to 3.5 per cent, while the expected trading profit margin was unchanged in the range of 22.8 per cent to 23.2 per cent. All three of its global franchises performed creditably, delivering growth on the back of a new commercial model and a rejigged management structure.
Management cited “rapid progress in M&A strategy”, including the March deal to acquire medical product manufacturer Osiris Therapeutics for $660m (£508m) – it would be surprising if more didn’t follow through the year.
