Smith & Nephew sales rise but margins disappoint

5th Aug 2011 08:03

Medical devices firm Smith & Nephew reported higher revenues and profits in the quarter to 3 July, but said margins were "disappointing" due to higher sales of lower margin products and other factors.Revenue climbed to $1.077bn (£659m) from $959m over the same period the previous year, while operating profit rose to $236m from $226m."The group trading margin was a disappointing 21.9% and decreased by 160 basis points, principally due to adverse sales mix (higher growth from lower margin products), non-recurring expenses and the phasing of investments," the company said.Smith & Nephew's products include replacement hips and wound care treatment. "We are operating in an increasingly changing environment," said chief executive Oliver Buhuon. "We are adapting to and anticipating these market conditions and have established a new strategic framework to drive Smith & Nephew's future success."---RG