Smith & Nephew expecting decline in second-quarter revenue
Smith & Nephew has announced the company is expecting a second-quarter underlying revenue decline of around -29%.
The company said the loss in revenue is in line with previously released projections for underlying revenue for the quarter significantly down year on year due to the COVID-19 pandemic.
“We are encouraged by the improving performance as the quarter progressed, with underlying revenue declines of -47% in April (as previously disclosed), -27% in May and around -12% in June,” the company said in a press release. “Performance was correlated strongly with the easing of lockdown restrictions and resumption of elective surgeries.”
Smith & Nephew said the COVID-19 pandemic significantly affected the company’s orthopedic reconstruction, sports medicine and ear, nose and throat businesses due to lower levels of elective surgery in the quarter.
Due to trading performance across the first and second quarters, the company said there are continued expectations of lower first-half trading margins compared with the previous year.
Smith & Nephew will report its second-quarter and first-half results on July 29.