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Smith & Nephew profit rises as knee implant sales increase
Smith & Nephew reported a 17% rise in annual profit as the medical products company sold more knee implants and increased sales in emerging markets.
Operating profit for the year to the end of December increased to $934m (£672m) from $801m as revenue rose 2% to $4.8bn. Trading profit, which strips out non-trading items, rose to $1.05bn from $1.02bn.
Smith & Nephew makes replacement joints, wound treatments and products that help repair broken bones. Annual sales of knee implants rose 5% on an underlying basis to $984m.
Revenue rose 12% in emerging markets to $781m. In the US, which makes up almost half Smith & Nephew's business, revenue rose 2% to $2.3bn and revenue was flat in Europe and other established markets.
Olivier Bohuon, Smith & Nephew's chief executive, said: "We delivered on our promises to improve the top and bottom line in 2017. Our knee implants franchise delivered a standout performance and we returned to double-digit growth in the emerging markets. Our healthy balance sheet, good cash generation and increased dividend demonstrate the robust foundations underpinning our business."
Bohuon said he expected 2018 to be another year of improvement with underlying revenue rising by 3-4% and profit margins improving. Smith & Nephew increased the annual dividend by 14% to 35 cents a share.