TIDMSN.
RNS Number : 7943T
Smith & Nephew Plc
25 March 2019
Re-presented Historical Quarterly Revenue Analysis
25 March 2019
Smith & Nephew plc (LSE:SN, NYSE:SNN) has updated its
revenue reporting in line with its previously announced new
commercial structure.
From 1 January 2019 the Group will report quarterly revenue for
three global franchises of Orthopaedics, Sports Medicine & ENT,
and Advanced Wound Management, replacing the previous franchise
structure. The Group's revenue reporting by geography is
unchanged.
Included within Orthopaedics are the following businesses:
-- Knee Implants
-- Hip Implants
-- Other Reconstruction, including capital sales from robotics
and cement (Other Reconstruction was previously reported within
Other Surgical Businesses)
-- Trauma (including certain extremities products)
Included within Sports Medicine & ENT are the following
businesses:
-- Sports Medicine Joint Repair (including certain extremities
products for joint repair previously reported within Trauma &
Extremities)
-- Arthroscopic Enabling Technologies
-- ENT (ENT was previously reported within Other Surgical Businesses)
Advanced Wound Management is unchanged, and includes the
following businesses:
-- Advanced Wound Care
-- Advanced Wound Bioactives
-- Advanced Wound Devices
Reporting by geography is unchanged, as follows:
-- US
-- Other Established Markets (Australia, Canada, Europe, Japan and New Zealand)
-- Emerging Markets
The updated reporting approach is in line with International
Financial Reporting Standard (IFRS) 8 Operating Segments that
require companies' segment reporting to reflect the way in which
performance is monitored, operating decisions are made and
resources are allocated.
In order to assist future comparability with historical data,
Smith & Nephew has set out below quarterly and full year
revenue under the new structure for 2018 and 2017. There has been
no change in total revenue for any period presented.
Enquiries
Investors
Andrew Swift, Smith & Nephew +44 (0) 20 7960 2285
Media
Charles Reynolds, Smith & Nephew +44 (0) 1923 477314
Ben Atwell / Andrew Ward, FTI Consulting +44 (0) 20 3727 1000
Notes
Unless otherwise specified as 'reported' all revenue growth
throughout this document is 'underlying' after adjusting for the
effects of currency translation and including the comparative
impact of acquisitions and excluding disposals. All percentages
compare to the equivalent 2017 period.
Underlying revenue growth is used to compare the revenue in a
given period to the comparative period on a like-for-like basis.
Underlying revenue growth reconciles to reported revenue growth,
the most directly comparable financial measure calculated in
accordance with IFRS, by making adjustments for the effect of
acquisitions and disposals and the impact of movements in exchange
rates (currency impact), as described below.
The effect of acquisitions and disposals measures the impact on
revenue from newly acquired business combinations and recent
business disposals. This is calculated by comparing the current
year, constant currency actual revenue (which include acquisitions
and exclude disposals from the relevant date of completion) with
prior year, constant currency actual revenue, adjusted to include
the results of acquisitions and exclude disposals for the
commensurate period in the prior year.
The 'constant currency exchange effect' is a measure of the
increase/decrease in revenue resulting from currency movements on
non-US Dollar sales and is measured as the difference between: 1)
the increase/decrease in the current year revenue translated into
US Dollars at the current year average exchange rate and the prior
revenue translated at the prior year rate; and 2) the
increase/decrease being measured by translating current and prior
year revenues into US Dollars using the prior year closing
rate.
About Smith & Nephew
Smith & Nephew is a portfolio medical technology business
with leadership positions in Orthopaedics, Advanced Wound
Management and Sports Medicine. Smith & Nephew has more than
16,000 employees and a presence in more than 100 countries. Annual
sales in 2018 were $4.9 billion. Smith & Nephew is a member of
the FTSE100 (LSE:SN, NYSE:SNN). For more information about Smith
& Nephew, please visit our corporate website
www.smith-nephew.com and follow us on Twitter, LinkedIn or
Facebook.
Forward-looking Statements
This document may contain forward-looking statements that may or
may not prove accurate. For example, statements regarding expected
revenue growth and trading margins, market trends and our product
pipeline are forward-looking statements. Phrases such as "aim",
"plan", "intend", "anticipate", "well-placed", "believe",
"estimate", "expect", "target", "consider" and similar expressions
are generally intended to identify forward-looking statements.
Forward-looking statements involve known and unknown risks,
uncertainties and other important factors that could cause actual
results to differ materially from what is expressed or implied by
the statements. For Smith & Nephew, these factors include:
economic and financial conditions in the markets we serve,
especially those affecting health care providers, payers and
customers; price levels for established and innovative medical
devices; developments in medical technology; regulatory approvals,
reimbursement decisions or other government actions; product
defects or recalls or other problems with quality management
systems or failure to comply with related regulations; litigation
relating to patent or other claims; legal compliance risks and
related investigative, remedial or enforcement actions; disruption
to our supply chain or operations or those of our suppliers;
competition for qualified personnel; strategic actions, including
acquisitions and dispositions, our success in performing due
diligence, valuing and integrating acquired businesses; disruption
that may result from transactions or other changes we make in our
business plans or organisation to adapt to market developments; and
numerous other matters that affect us or our markets, including
those of a political, economic, business, competitive or
reputational nature. Please refer to the documents that Smith &
Nephew has filed with the U.S. Securities and Exchange Commission
under the U.S. Securities Exchange Act of 1934, as amended,
including Smith & Nephew's most recent annual report on Form
20-F, for a discussion of certain of these factors. Any
forward-looking statement is based on information available to
Smith & Nephew as of the date of the statement. All written or
oral forward-looking statements attributable to Smith & Nephew
are qualified by this caution. Smith & Nephew does not
undertake any obligation to update or revise any forward-looking
statement to reflect any change in circumstances or in Smith &
Nephew's expectations.
Trademark of Smith & Nephew. Certain marks registered US
Patent and Trademark Office.
Smith & Nephew Re-presented 2018 Results
First Quarter 2018 Consolidated Re-presented Revenue
Analysis
31 March 1 April Reported Underlying Acquisitions Currency
2018 2017 growth Growth(i) /disposals impact
Consolidated revenue by franchise $m $m % % % %
------------------------------------- -------- ------- -------- ---------- ------------ --------
Orthopaedics 544 522 4 - - 4
-------------------------------------- -------- ------- -------- ---------- ------------ --------
Knee Implants 259 244 6 2 - 4
Hip Implants 155 152 2 -2 - 4
Other Reconstruction 13 10 34 30 - 4
Trauma 117 116 1 -2 - 3
Sports Medicine & ENT 362 340 6 1 1 4
-------------------------------------- -------- ------- -------- ---------- ------------ --------
Sports Medicine Joint Repair 175 155 12 5 2 5
Arthroscopic Enabling Technologies 152 153 - -5 - 5
ENT 35 32 9 6 - 3
Advanced Wound Management 290 280 4 -2 - 6
-------------------------------------- -------- ------- -------- ---------- ------------ --------
Advanced Wound Care 183 170 8 - - 8
Advanced Wound Bioactives 59 66 -11 -12 - 1
Advanced Wound Devices 48 44 10 2 - 8
Total 1,196 1,142 5 - - 5
-------------------------------------- -------- ------- -------- ---------- ------------ --------
Consolidated revenue by geography
------------------------------------- -------- ------- -------- ---------- ------------ --------
US 545 555 -2 -2 - -
Other Established Markets(ii) 446 409 9 -2 - 11
Total Established Markets 991 964 3 -2 - 5
Emerging Markets 205 178 15 9 - 6
Total 1,196 1,142 5 - - 5
-------------------------------------- -------- ------- -------- ---------- ------------ --------
(i) Underlying growth is defined in the Notes on page 2
(ii) Other Established Markets are Australia, Canada, Europe, Japan and New Zealand
Second Quarter 2018 Consolidated Re-presented Revenue
Analysis
30 June 1 July Reported Underlying Acquisitions Currency
2018 2017 growth Growth(i) /disposals impact
Consolidated revenue by franchise $m $m % % % %
------------------------------------- ------- ------ -------- ---------- ------------ --------
Orthopaedics 548 531 3 1 - 2
-------------------------------------- ------- ------ -------- ---------- ------------ --------
Knee Implants 258 246 5 3 - 2
Hip Implants 156 150 4 1 - 3
Other Reconstruction 16 13 28 27 - 1
Trauma 118 122 -4 -5 - 1
Sports Medicine & ENT 368 345 7 3 2 2
-------------------------------------- ------- ------ -------- ---------- ------------ --------
Sports Medicine Joint Repair 177 159 12 7 3 2
Arthroscopic Enabling Technologies 153 151 1 -1 - 2
ENT 38 35 7 5 - 2
Advanced Wound Management 329 318 4 1 - 3
-------------------------------------- ------- ------ -------- ---------- ------------ --------
Advanced Wound Care 187 177 6 2 - 4
Advanced Wound Bioactives 87 92 -5 -6 - 1
Advanced Wound Devices 55 49 12 9 - 3
Total 1,245 1,194 4 2 - 2
-------------------------------------- ------- ------ -------- ---------- ------------ --------
Consolidated revenue by geography
------------------------------------- ------- ------ -------- ---------- ------------ --------
US 590 582 1 1 - -
Other Established Markets(ii) 429 403 6 1 - 5
Total Established Markets 1,019 985 3 1 - 2
Emerging Markets 226 209 8 6 - 2
Total 1,245 1,194 4 2 - 2
-------------------------------------- ------- ------ -------- ---------- ------------ --------
(i) Underlying growth is defined in the Notes on page 2
(ii) Other Established Markets are Australia, Canada, Europe, Japan and New Zealand
Third Quarter 2018 Consolidated Re-presented Revenue
Analysis
29 September 30 September Reported Underlying Acquisitions Currency
2018 2017 growth Growth(i) /disposals impact
Consolidated revenue by
franchise $m $m % % % %
----------------------------- ------------ ------------ -------- ---------- ------------ --------
Orthopaedics 505 494 2 5 - -3
------------------------------ ------------ ------------ -------- ---------- ------------ --------
Knee Implants 232 228 1 4 - -3
Hip Implants 142 140 2 4 - -2
Other Reconstruction 13 10 37 43 - -6
Trauma 118 116 2 3 - -1
Sports Medicine & ENT 345 336 3 3 2 -2
------------------------------ ------------ ------------ -------- ---------- ------------ --------
Sports Medicine Joint Repair 171 157 9 8 3 -2
Arthroscopic Enabling
Technologies 138 144 -4 -2 - -2
ENT 36 35 3 5 - -2
Advanced Wound Management 319 322 -1 1 - -2
------------------------------ ------------ ------------ -------- ---------- ------------ --------
Advanced Wound Care 184 186 -1 1 - -2
Advanced Wound Bioactives 81 86 -7 -7 - -
Advanced Wound Devices 54 50 9 11 - -2
Total 1,169 1,152 2 3 - -1
------------------------------ ------------ ------------ -------- ---------- ------------ --------
Consolidated revenue by
geography
------------------------------ ------------ ------------ -------- ---------- ------------ --------
US 569 545 4 4 - -
Other Established
Markets(ii) 393 407 -3 -1 - -2
Total Established Markets 962 952 1 2 - -1
Emerging Markets 207 200 4 10 - -6
Total 1,169 1,152 2 3 - -1
------------------------------ ------------ ------------ -------- ---------- ------------ --------
(i) Underlying growth is defined in the Notes on page 2
(ii) Other Established Markets are Australia, Canada, Europe, Japan and New Zealand
Fourth Quarter 2018 Consolidated Re-presented Revenue
Analysis
31 December 31 December Reported Underlying Acquisitions Currency
2018 2017 growth Growth(i) /disposals impact
Consolidated revenue by
franchise $m $m % % % %
--------------------------------- ----------- ----------- -------- ---------- ------------ --------
Orthopaedics 571 560 2 4 - -2
---------------------------------- ----------- ----------- -------- ---------- ------------ --------
Knee Implants 269 266 1 3 - -2
Hip Implants 160 157 2 4 - -2
Other Reconstruction 19 13 43 45 - -2
Trauma 123 124 -1 1 - -2
Sports Medicine & ENT 386 382 1 2 1 -2
---------------------------------- ----------- ----------- -------- ---------- ------------ --------
Sports Medicine Joint Repair 193 179 8 8 2 -2
Arthroscopic Enabling
Technologies 157 167 -6 -4 - -2
ENT 36 36 1 3 - -2
Advanced Wound Management 337 336 - 2 - -2
---------------------------------- ----------- ----------- -------- ---------- ------------ --------
Advanced Wound Care 185 187 -1 2 - -3
Advanced Wound Bioactives 94 97 -3 -3 - -
Advanced Wound Devices 58 52 11 14 - -3
Total 1,294 1,278 1 3 - -2
---------------------------------- ----------- ----------- -------- ---------- ------------ --------
Consolidated revenue by geography
---------------------------------- ----------- ----------- -------- ---------- ------------ --------
US 649 624 4 3 1 -
Other Established Markets(ii) 427 439 -3 - - -3
Total Established Markets 1,076 1,063 1 2 - -1
Emerging Markets 218 215 2 8 - -6
Total 1,294 1,278 1 3 - -2
---------------------------------- ----------- ----------- -------- ---------- ------------ --------
(i) Underlying growth is defined in the Notes on page 2
(ii) Other Established Markets are Australia, Canada, Europe, Japan and New Zealand
Full Year 2018 Consolidated Re-presented Revenue Analysis
31 December 31 December Reported Underlying Acquisitions Currency
2018 2017 growth Growth(i) /disposals impact
Consolidated revenue by
franchise $m $m % % % %
--------------------------------- ----------- ----------- -------- ---------- ------------ --------
Orthopaedics 2,168 2,107 3 3 - -
---------------------------------- ----------- ----------- -------- ---------- ------------ --------
Knee Implants 1,017 984 3 3 - -
Hip Implants 613 599 2 2 - -
Other Reconstruction 62 45 36 36 - -
Trauma 476 479 - -1 - 1
Sports Medicine & ENT 1,461 1,402 4 2 2 -
---------------------------------- ----------- ----------- -------- ---------- ------------ --------
Sports Medicine Joint Repair 717 650 10 7 2 1
Arthroscopic Enabling
Technologies 600 615 -2 -3 - 1
ENT 144 137 5 5 - -
Advanced Wound Management 1,275 1,256 2 - - 2
---------------------------------- ----------- ----------- -------- ---------- ------------ --------
Advanced Wound Care 740 720 3 1 - 2
Advanced Wound Bioactives 320 342 -6 -6 - -
Advanced Wound Devices 215 194 10 9 - 1
Total 4,904 4,765 3 2 - 1
---------------------------------- ----------- ----------- -------- ---------- ------------ --------
Consolidated revenue by geography
----------------------------------------------- ----------- -------- ---------- ------------ --------
US 2,354 2,306 2 1 1 -
Other Established Markets(ii) 1,693 1,658 2 - - 2
Total Established Markets 4,047 3,964 2 1 - 1
Emerging Markets 857 801 7 8 - -1
Total 4,904 4,765 3 2 - 1
---------------------------------- ----------- ----------- -------- ---------- ------------ --------
(i) Underlying growth is defined in the Notes on page 2
(ii) Other Established Markets are Australia, Canada, Europe, Japan and New Zealand
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END
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