Smith & Nephew
(NYSE:SNN) said today it expects second-quarter revenues to dip by 29% due to the coronavirus pandemic, although results gradually improved as time went on.
Sales were hardest hit in the company’s orthopedic reconstruction, sports medicine and ENT businesses due to the pandemic-related lockdown and pause in elective surgeries. The company’s advanced wound management and trauma businesses fared better, executives said in a statement, but “significant uncertainty and geographical variation” persist, they added.
While the revenue drop is in line with SNN’s previously published outlook, sales gradually improved over the quarter, with revenue declines of -47% in April, -27% in May and -12% in June, they noted.
“As a result of the trading performance across the first and second quarters, we continue to expect that the first half trading margin will be substantially down on the prior year,” company officials said. “An update on this, and our progress across the Group on controlling discretionary costs, will be included with our second quarter and first half results, which will be reported as planned on 29 July 2020.”
As previously announced, Anne-Francoise Nesmes will join the company as CFO on July 27, 2020.