Smith & Nephew reiterates full-year outlook despite tariff hit
By Abigail Townsend
Date: Wednesday 30 Apr 2025
(Sharecast News) - Shares in Smith & Nephew jumped on Wednesday, after the medical devices specialist posted improved first-quarter sales and reaffirmed its full-year outlook.
Revenues in the three months to 29 March came in at $1.41bn, up 1.6%, or 3.1% once the impact of currency fluctuations were stripped out.
The blue chip said growth been driven by operational improvements and new product launches, which helped offset weakness in China.
In orthopaedics, its biggest division, underlying revenues grew 3.2% at $578m, fuelled by strong demand for hip and knee replacements in the US.
Looking to the rest of the year, Smith & Nephew acknowledged that Donald Trump's sweeping tariff regime would likely have a net impact of between $15m and $20m, based on currently announced measures and mitigations.
It continued: "The tariff situation remains dynamic. Just over half our revenues are in the US, and two thirds of the products we sell within the US are manufactured in-market.
"We are working to mitigate tariff impacts from products and raw materials into the US, including leveraging our global manufacturing network in terms of mix and supply routes."
But it left its full-year guidance unchanged, for underlying revenue growth of around 5% and a "significant" profit margin expansion to between 19% and 20%.
It also flagged a likely stronger second half, as China headwinds reduce and operational savings start to come through.
Neil Wilson, UK investor strategist at Saxo Markets, said the firm's forecast tariff impact was "not huge overall".
As at 1100 BST, Smith & Nephew had put on 7% at 1,062p.
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