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Smith & Nephew FY17 EPS Down, Revenues Up; Sees Growth In FY18 Revenues, Margin

Medical technology company Smith & Nephew plc. (SN.L,SNN) reported Thursday that its fiscal 2017 earnings per share declined to 87.8 US cents from 88.1 US cents last year.

Adjusted earnings per share were 94.5 US cents, compared to 82.6 US cents a year ago.

Non-IFRS trading profit grew 3 percent to $1.05 billion from $1.02 billion a year earlier. Operating profit climbed 17 percent year-over-year to $934 million.

Revenue for the year increased 2 percent to $4.77 billion from last year's $4.67 billion.

In the fourth quarter, revenues were $1.28 billion, higher than last year's $1.22 billion.

Underlying revenue up 3% and trading profit margin up 20bps to 22.0%, in line with guidance

Further, the company said its Board recommended a Final Dividend of 22.7 cents per share or 45.4 cents per ADS. This will give a total distribution of 35.0 cents per share or 70.0 cents per ADS in 2017. The 14% year-on-year growth in the declared full year dividend reflects the strong growth in adjusted earnings per share.

Looking ahead, the company expects the overall dynamics in markets to be similar in 2018 to those seen in 2017. In terms of revenue, the company expects underlying growth to be in the range of 3% to 4%. On a reported basis this equates to a range of around 7% to 8%.

In terms of trading profit margin, in 2018 the company expects to drive a further 30-70bps improvement over the previous year.

by RTTNews Staff Writer

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