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Smith & Nephew PLC on Wednesday reported broadly in line first quarter sales figures with strength in Sports Medicine offsetting weakness in US Knee Implants. The Watford, England-based medical equipment and devices company said revenue totalled $1.50 billion in the first quarter, up 6.6% from $1.41 billion the year prior, and in line with company compiled consensus. Underlying revenue growth of 3.1% missed consensus of 3.2%, with S&N noting the period had one fewer trading day versus last year. On an adjusted daily sales basis, underlying sales rose 4.7%. The FTSE 100 listing said sales were consistent with expectations, with growth across all business units and regions, and strength in Sports Medicine offsetting weakness in US Knee Implants. By division, underlying sales grew 6.7% in Sports Medicine, 2.2% in Advanced Wound Management, and 0.8% in Orthopaedics. Orthopaedics was held back by a 10% drop in Knee Implants underlying revenue. S&N said this reflected soft US trading ahead of the launch of the group’s new kinematic Landmark knee system. ‘The US market continues to shift towards cementless knees, and we are excited about the launch of the cementless version of Landmark, expected in the third quarter of 2026,’ the firm added. Outside the US, Knee Implants delivered strong underlying revenue growth of 6.0%. Full year 2026 guidance was left unchanged, with S&N on track to deliver underlying revenue growth of around 6%, around 8% trading profit growth, around $800 million free cash flow, and more than 10% adjusted return on invested capital. In 2025, S&N reported revenue of $6.16 billion, trading profit of $1.21 billion, free cash flow of $840 million and an adjusted ROIC of 8.3%. In addition, S&N announced a new $500 million share buyback, ‘reflecting confidence in 2026 performance and strong balance sheet and free cash flow generation.’ The buyback, to be completed within the next twelve months, follows the $500 million buyback completed in 2025. Shares in S&N shrugged off a weak start to trade just 0.2% lower at 1,156.50 pence each in London on Wednesday, after swapping hands at as low as 1,102.50p earlier. Copyright 2026 Alliance News Ltd. All Rights Reserved.
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