(Reuters) -Smith+Nephew beat analysts’ expectations for annual sales and profit on Tuesday, as a recovery in its U.S. knee and hip implant business, along with cost cuts, helped the medical products maker offset the impact of weak demand from China.
Founded in 1856, Smith+Nephew makes orthopaedic implants and prosthetics, along with wound dressings and other surgical aids. The company has been reworking its strategy to cement growth in newer markets and stabilise more mature ones as demand slows.
Smith+Nephew also projected that 2025 revenue would increase around 5% on an underlying basis, compared with analysts’ expectations of a 4.8% growth.
Still, the company forecast first-quarter revenue growth of only 1% to 2%, as challenges in China continue to impact its performance. In the same quarter last year, Smith+Nephew’s sales had increased by 2.9%.
Revenue for the year ended December 31 stood at $5.81 billion, with trading profit totalling $1.05 billion. This surpassed analysts’ average expectations of $5.78 billion and $1.03 billion, respectively, according to a company-compiled consensus.
(Reporting by Pushkala Aripaka in Bengaluru; Editing by Sherry Jacob-Phillips)
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