SN. Smith & Nephew Plc

By Anthony O. Goriainoff

Smith & Nephew PLC said Thursday that 2020 pretax profit fell sharply on lower revenue, and that the outlook reflects the likely continuation of the effects of the coronavirus pandemic on the first half of 2021.

The FTSE-100 medical-technology group said there is uncertainty regarding the pace and the timing of recovery.

The company posted a pretax profit of $246 million for last year, compared with $743 million for 2019. A forecast, taken from FactSet, had projected the figure at $268 million.

Net profit fell to $448 million, from $600 million in the previous year, the company said. This beat a consensus estimate of $346.9 million, taken from FactSet and based on seven analysts' forecasts.

Revenue for 2020 came in at $4.56 billion compared with $5.14 billion the year before. A consensus estimate, based on the forecasts of 12 analysts polled by FactSet, had seen the figure at $4.61 billion.

The trading profit margin for the year was 15%, with a trading profit of $683 million.

The board recommended a final dividend of 23.1 cents.

Smith & Nephew said it expects to deliver substantial underlying growth in 2021 compared with last year, and that it expects an improved profit margin this year.

"We will again invest more in R&D and I am excited by the pipeline of new technologies approaching launch, and by the potential of our recent acquisitions," Chief Executive Roland Diggelmann said.

Write to Anthony O. Goriainoff at anthony.orunagoriainoff@dowjones.com

(END) Dow Jones Newswires

February 18, 2021 02:45 ET (07:45 GMT)

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