Smith & Nephew have released a robust set of 2021 results with its share price up 2% to 1,202p at the time of writing.
The FTSE 100 company also announced that it had opted to hire Dr Deepak Nath as its new Chief Executive Officer (CEO).
He is set to succeed Roland Diggelmann, who has reportedly stepped down in mutual agreement with the company.
Nath is scheduled to take over the role in 1 April 2022 following Diggleman’s departure on 31 March 2022.
“Smith & Nephew is a great company with innovation at its core and a purpose of Life Unlimited, supporting patients around the world in returning to a healthy and fulfilled life,” said Nath.
“I am honoured to have been given the opportunity to lead the business. I look forward to building on Smith & Nephew’s rich history and heritage and working with the team to take it to the next level of growth.”
Diggleman added: “It has been a privilege to lead Smith & Nephew. I would like to thank my colleagues across the business for their tireless efforts to support our customers and communities, and continue to deliver against the backdrop of COVID.”
“I look forward to seeing the business go from strength to strength under Deepak ‘s leadership.”
Financial highlights in the past year included revenue of $5,212 million compared to a 2020 revenue of $4,560 million, which marked a 14.3% on a reported basis and 10.3% on an underlying basis for the company.
The company also reported that its operating profits had doubled from $295m to $593m.
Smith & Nephew further reported that its sports Medicine & ENT and Advanced Wound Management revenue had returned to above pre-COVID levels.
However, the company also reported that its performance in orthopaedics had been impacted by ongoing global supply chain constraints.
“Smith & Nephew needed an end to the pandemic and the sense of a fresh start was underlined alongside its latest full year numbers as the company announced the departure of CEO Roland Diggelmann,” said Russ Mould, investment director at AJ Bell.
Smith & Nephew confirmed a full-year dividend of of 37.5¢ per share, matching its 2020 and 2019 offerings to shareholders.
“We finished 2021 with a solid fourth quarter, despite nearly a week less trading than in 2020 and the impact of Omicron, which affected the typical quarter-end pick up in average daily sales,” said Diggleman.
“For the full year we delivered on our guidance commitments on both the top and bottom line.”
“We are beginning to see our step up in R&D investment bear fruit, and all three franchises contributed to our double-digit revenue growth.”
“Pleasingly, our Sports Medicine & ENT and Advanced Wound Management franchises delivered revenue above pre-COVID 2019 levels.”
“Performance was held back by global supply chain challenges, which particularly impacted our Orthopaedics franchise.”
“Looking to the future, we have set out our new Strategy for Growth with an ambition to transform to a structurally higher growth company, including clear medium-term revenue and trading profit margin targets.”
Smith & Nephew currently boast an operational foothold across the globe, focusing on advanced wound management, orthopaedics and trauma and sports medicine.
