Smith & Nephew Thursday reported its net profit grew 3 percent in the first quarter, helped by an increase in revenue, profit and trading margins in the company’s Advanced Surgical Devices and Advanced Wound Management divisions.
The London-based medical device maker, which has facilities in Memphis, said Q1 highlights included a 6 percent growth in revenue from the company’s knee implants and a strong quarter for its Negative Pressure Wound Therapy portfolio.
Revenue in established markets grew 2 percent in Q1, while the company saw a growth rate of 12 percent in emerging markets.
Trading profit was $252 million, up 5 percent from $241 million in 2011 – exceeding expectations.
“Smith & Nephew has had a good first quarter,” said Smith & Nephew CEO Olivier Bohuon. “We grew revenue, increased profit and improved our trading profit margin. We saw the first results of our actions to make Smith & Nephew more fit and effective."
Smith & Nephew said the improvements also reflect some strategic steps it has taken to reshape the company. In Memphis, the company has opened a new innovation and training center, which will be used to deliver surgeon training programs.
The multi-disciplinary facility includes implant, trauma and sports medicine, allowing people of different specialties to share learning and innovation.
Bohuon said 2012 is a critical year for implementing its new strategic priorities.
“Our plans to progress the structural changes, additional investments and, of course, greater efficiencies, are now under way,” he said. “Throughout Smith & Nephew, at every level, there is a clear sense of direction, as we work to reshape the Group for future growth.”