Smith & Nephew

Smith & Nephew is a global corporation with 15,000 employees worldwide specializing in the production of medical devices and dressings, with local offices in more than 100 countries.

In Russia, the company is represented by Smith and Nefyu LLC.

Performance indicators

2020: Decrease in revenue by 11.2%, to $4.56 billion, profit - 2 times, to $683 million

According to the results of work in 2020, Smith & Nephew registered revenue in the amount of $4.56 billion, which is 11.2% less than a year earlier. The company's largest business was orthopedics, including the sale of implants. However, the corresponding division in 2020 reduced sales by 14%, to $1.92 billion.

Smith & Nephew in 2020 earned about $822 million on knee endoprostheses, which is 21.1% less than a year ago. In the hip arthrosthesis market, revenues did not fall so much - by 7.5% to $567 million. Sales of technology for the treatment of various injuries decreased by 5.7%, to $460 million.

Sports medicine in 2020 provided Smith & Nephew with revenue of $1.33 billion, which fell 13.2% short of a year ago. Technologies for arthroscopic surgery (minimally invasive surgical manipulation carried out to diagnose and treat injuries to the inside of the joint) added $517 million to the company's turnover (-12.6% year on year). In the direction of otolaryngology, an almost 30 percent decline in income was registered, to $106 million.

In the segment of dressings, Smith & Nephew's revenue at the end of 2020 reached $1.31 billion, down 5.1% compared to 2019.

As for the regions, about half of the manufacturer's revenue falls on the American market - there sales in 2020 amounted to $2.34 billion, a decrease of 8.3% compared to the previous year. In other developed markets combined, the company earned $1.45 billion (a decrease of 11% compared to 2019), and in developing markets - $771 million (-19.4%).

Net profit of Smith & Nephew in 2020 almost halved - to $683 million from $1.17 billion in 2019. The company's net debt amounted to $1.7 billion. Smith & Nephew's financial downturn was the result of the COVID-19 coronavirus pandemic.

History

2020: Purchase of Integra LifeSciences

At the end of September 2020, Smith & Nephew acquired Integra LifeSciences, an orthopedic research company, for $240 million. As a result of the transaction, Smith & Nephew gained control of the Titan Reverse Shoulder System portfolio of products for arthroplasty of the shoulder joint, which brought Integra LifeSciences income of $90 million in 2019. Read more here.

2019

Roland Diggelmann - Smith & Nephew CEO

At the end of October 2019, Smith & Nephew, which develops and sells medical equipment, announced that Roland Diggelmann will become the new CEO from November 1. Read more here.

Purchase of camera developer for robotic surgeons Atracsys Sarl

In mid-June 2019, Smith & Nephew entered into an agreement to buy camera developer for robotic surgeons Atracsys Sarl. Read more here.

Purchase of soft tissue death prevention equipment developer Leaf Healthcare

In early April 2019, Smith & Nephew announced the acquisition of soft tissue prevention equipment developer Leaf Healthcare. Read more here.

Buying Brainlab's Orthopaedic Joint Reconstruction Unit

On March 12, 2019, Smith & Nephew announced the purchase of a division of Brainlab, which deals with orthopedic joint reconstruction. In addition, the companies have entered into an agreement to jointly develop additional applications for the advanced automation platform. Read more here.

Purchase of bone cartilage implant manufacturer Osiris Therapeutics for $660 million

On March 12, 2019, Smith & Nephew announced the acquisition of bone cartilage implant manufacturer Osiris Therapeutics for $660 million. Smith & Nephew announced that it will pay Osiris Therapeutics shareholders $19 of its own funds for each share they own. Read more here.

2018

Revenue growth by 3% to $4.9 billion

In 2018, Smith & Nephew earned $4.9 billion in revenue, while a year earlier it was measured at $4.77 billion.

Much of the company's business remains tied to sports medicine and trauma recovery products. In 2018, the corresponding activity brought Smith & Nephew a turnover of $2 billion, which is 4% more than a year ago. Revenues directly from sports medicine amounted to $697 million, an increase of 11% compared to the previous year.

Smith & Nephew financials

Technologies for arthroscopic surgery (minimally invasive surgical manipulation carried out to diagnose and treat injuries to the inner part of the joint) provided the company with revenues of $600 million against $615 million in 2017.

The company's implementation of knee arthrostheses in 2018 reached $1.02 billion, which is 3% more than a year earlier. Revenues of $613 million were registered on the hip arthrosthesis market, and in 2017 they amounted to $599 million.

Another major area of ​ ​ work of Smith & Nephew are dressings, the revenue from which in 2018 reached $1.28 billion, rising by 2% compared to a year ago. In this market, the largest earnings come from wound care materials: in 2018, the company's revenues from them increased by 3% to $740 million.

In 2018, Smith & Nephew's revenue in the US market amounted to $2.35 billion, which is 2% more than a year earlier. Smith & Nephew's total net profit decreased from $767 million in 2017 to $663 million a year later.^[1]

It follows from the financial report that in 2018 Smith & Nephew bought 29 companies, and spent about $1 billion on these acquisitions. The net debt of the American manufacturer of medical devices by December 31 decreased to $1.1 billion from $1.28 billion at the end of 2017.

Purchase of the developer of surgical instruments for the restoration of the meniscus Ceterix Orthopedics for $105 million

On December 18, 2018, Smith & Nephew announced the purchase of meniscus repair surgical instrument developer Ceterix Orthopedics and its NovoStitch Pro knee injury treatment device. According to the terms of the transaction, Smith & Nephew must pay $50 million in advance and another $55 million over the next five years, depending on the economic results obtained. Read more here.

2016: Sale of gynaecological business for $350 million to Medtronic

On May 19, 2016, Medtronic reported buying Smith & Nephew's gynaecology business for more than a third of a billion dollars.

In 2015, the gynecology business brought Smith & Nephew $56 million in revenue, which corresponds to only 1% of the company's total revenue. She says the deal won't have much of an impact on the 2017 adjusted earnings figure. Read more here.

Medtronic buys Smith & Nephew gynaecology business for $350m

Notes