LONDON (ShareCast) - (Sharecast News) - Medical equipment manufacturer Smith & Nephew raised its full-year free cash flow guidance on Thursday as it revealed third quarter revenues had grown.
Smith & Nephew said revenues had risen 5% on an underlying basis to $1.50bn in the three months ended 27 September, and was up 6.3% on a reported basis, including a 130 basis point currency tailwind.

Orthopaedics revenue grew 4.1% on an underlying basis, with strength in US hip implants offsetting softer knee performance, while sports medicine and ENT revenues posted 5.1% growth, as pressures in China began to ease, and advanced wound management revenues rose 6.0%, led by double-digit gains in bioactives.

Smith & Nephew maintained its full-year outlook for underlying revenue growth of around 5.0% and a trading profit margin of 19.0% to 20.0%. It also said it now expects free cash flow of around $750m, up from previous guidance of more than $600m.

Chief executive Deepak Nath said: "Our third quarter results again demonstrate how the 12-Point Plan has improved Smith+Nephew's revenue growth profile, keeping us on track to meet our full-year outlook for revenue growth and a step-up in trading profit margin.

"Additionally, we are pleased to be able to raise our guidance for improved free cash flow, which we now expect to be around $750m, a more than five-fold increase since 2023."



Reporting by Iain Gilbert at Sharecast.com

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