Smith & Nephew FY21 Profit Climbs, Dividend Flat; Sees Margin, Revenue Growth Ahead; Names New CEO

(RTTNews) - Smith & Nephew Plc (SN, SNN), a U.K.-based medical technology business, reported Tuesday that its fiscal 2021 profit before taxation surged to $586 million from last year's $246 million. Earnings per share were 59.8 cents, up from 51.3 cents a year ago.

Adjusted earnings per share were 80.9 cents, compared to 64.6 cents last year.

Trading profit was $936 million, up from $683 million last year, with trading profit margin of 18.0 percent, up from prior year's 15.0 percent.

Revenue of $5.21 billion climbed 14.3 percent from $4.56 billion a year ago. Revenue grew 10.3 percent on an underlying basis.

In the fourth quarter, revenue was $1.35 billion, up from 1.5 percent on a reported basis and up 0.3 percent on an underlying basis.

Further, the Board is recommending a Final Dividend of 23.1¢ per share or 46.2¢ per ADS. This gives a total distribution of 37.5¢ per share or 75.0¢ per ADS, unchanged from 2020 and 2019.

Subject to confirmation at Annual General Meeting, the Final Dividend will be paid on 11 May 2022 to shareholders on the register at the close of business on 1 April 2022.

Looking ahead for 2022, the company targets revenue growth of around 2.6 percent to 3.6 percent on a reported basis and 4.0 percent to 5.0 percent on an underlying basis.

Growth is expected to be stronger in the second half than the first half of 2022.

For trading profit margin, the company targets around 50 basis points of expansion in 2022.

Further, through its Strategy for Growth, the company expects consistent 4 percent to 6 percent underlying revenue growth by 2024, structurally ahead of historical levels, and a trading profit margin of at least 21 percent by 2024 with further improvements thereafter.

Separately, Smith+Nephew announced that Deepak Nath has been appointed as the Company's new Chief Executive Officer, succeeding Roland Diggelmann, who will step down by mutual agreement.

Nath will take up the role on April 1 and Diggelmann will leave on March 31.

Nath joins Smith+Nephew from Siemens Healthineers where most recently he was President of the Diagnostics business segment.