Smith+Nephew (NYSE:SNN) shares ticked up slightly on fourth-quarter financial results that include projections for growth in 2023.
Shares of SNN rose 0.5% at $29.55 apiece in early-morning trading today. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — rose 8.7%.
The London-based orthopedic implant maker posted revenues of $1.37 billion for the quarter. That marks a 1.4% increase from the same three-month period in 2021. Full-year revenues grew 0.1% to $5.22 billion. The company recorded a 2022 operating profit of $450 million.
Smith+Nephew said in a news release that it spent 2022 “transforming” itself with a 12-point plan. It aims to improve execution and drive strategy for growth. That includes fixing orthopedics, improving productivity and accelerating wound management and sports medicine growth.
The company reported “good early progress” that includes reduced overdue orders and improved order fulfillment. Smith+Nephew continues to launch new products, too, contributing to growth.
Smith+Nephew CEO Deepak Nath said the plan “fundamentally” changes the way the company operates. Early benefits include investment in innovation, with more than 60% of 2022 growth coming from products launched in the past five years. Still, the year ahead could prove challenging.
“We will continue to face macroeconomic headwinds in 2023,” Nath said. “However, I believe the drivers of further growth are in place, including leading technologies across all three franchises and a clear path to improved execution in orthopaedics. We expect to deliver both faster revenue growth and margin expansion in the coming year, and are setting a solid foundation for our midterm ambitions as we transform to a consistently higher growth company.”
Smith+Nephew targets revenue growth between 5% and 6% for next year.