By Joe Hoppe
Smith & Nephew PLC said Wednesday that it expects underlying revenue for the second quarter to fall by around 29% on year due to the coronavirus pandemic, in line with prior expectations.
The medical-technology business said it was encouraged by improving performances as the quarter progressed, with underlying revenue down 47% in April, down 27% in May, and down 12% in June year-on-year. Smith & Nephew said performance was closely related to the easing of lockdown measures and with the resumption of elective surgeries, though there remains significant uncertainty and geographical variation.
Because of the hit in the first and second quarters, the company said that it expects its first-half trading margin will be substantially down on the prior year, and that it will provide an update on cost-cutting measures soon.
Smith & Nephew added that the damage from the pandemic was most pronounced in its orthopedic reconstruction, sports medicine and ear, nose and throat businesses, driven by lower levels of elective surgery. However, it also said its advanced wound management and trauma businesses have been more resilient.
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