Smith & Nephew's 2015 revenue hits $4.63B, US metal-on-metal hip implant lawsuits settled: 10 key notes

Spinal Tech

Smith & Nephew reported slight revenue growth in the fourth quarter and full year of 2015.

Here are 10 key notes on the company's financial report:


1. Smith & Nephew's fourth quarter revenue climbed 5 percent from the same period last year to reach $1.24 billion. The company's full year revenue jumped to $4.63 billion from $4.61 billion last year.


2. The full year trading and operating profit was $1 million and the trading and operating profit margin was 23.7 percent.


3. In the fourth quarter, the company's established markets revenue had the largest growth at 6 percent. The emerging markets reported 2 percent growth with strong growth in many markets offset by China.


4. The company's sports medicine revenue in the fourth quarter jumped 9 percent. The United States sales and ArthroCare benefits drove the growth.


5. Knee revenue in the fourth quarter was up 6 percent while the wound management business delivered 8 percent revenue growth.


6. Fourth quarter revenue was up 11 percent in the United States to $626 million; the other established markets contributed $454 million and emerging markets had $177 million.


7. In the fourth quarter, Smith & Nephew settled the majority of the hip metal-on-metal implant claims in the United States. The net cash cost was $25 million and the primary products are no longer on the market.


8. The full year revenue in the United States reached $2.2 billion. The established markets revenue was down 12 percent to $1.7 billion, but emerging markets were up 11 percent to $715 million.


9. In 2016 the company expects to exceed a 24 percent trading profit margin, including the 60 bps dilution from investing in Blue Belt Technologies.


10. The company's strategy for the coming year includes continued revenue growth and improving performance through innovation, better commercial execution and efficiency.


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