Smith & Nephew’s new boss focuses on return to growth

The new boss of Smith & Nephew oversaw an upbeat first set of results under his leadership, but admitted that the company needs to focus its efforts on growth.

The FTSE 100 company, which specialises in artificial hips and knees, reported a 2pc rise in underlying revenues to £1.3bn and a 4pc rise in reported revenues for the first half at £2.4bn, but an 11pc decline in pre-tax profit to £341m.

Chief executive Namal Nawana said that was largely due to restructuring costs, but added that those costs were lower than expected and that the annualised benefits of the restructuring were also better than expected.

Since joining, Mr Nawana said he has observed that Smith & Nephew has “great medical technologies” and “that’s a good starting line but why aren’t those technologies achieving growth and what are the opportunities to have them accelerate?”

Smith & Nephew said its underlying revenue growth expectation range for the year is unchanged at 2pc to 3pc and it expects its trading profit margin to be flat or above last year’s level of 22pc.

Mr Nawana said that he was focused on “energising and organising” the company to grow at a faster rate. He pointed to issues in the past with how the business was organised and the level of focus of the business, and has been benchmarking it against rivals.

“In our portfolio, I think we actually do have some of the very best products in certain of the categories, but they’re just not growing like the best products in the categories, so, to me, that means that our organisation needs to have greater focus on the products that can win.”

He added that the company’s robotics technology is “something we could really build on going forward”.

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Image Credit: Smith & Nephew

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About Peter Coffaro 542 Articles
A growth-driven and strategic executive, Peter Coffaro commands more than 20 years of progressive management success within the medical device industry. As a District Sales Manager for Stryker Orthopaedics, Peter was responsible for managing and directing a regional sales force to achieve sales and profit goals within the Rocky Mountain region. Previously, he was the Director of Sales & Marketing for Amp Orthopedics. In this role, Peter was responsible for planning, developing, and leading all sales and marketing initiatives. Peter is a former orthopedic distributor in the Pacific Northwest. He has also worked with DePuy Orthopaedics as well as Zimmer, and held positions in sales, sales training, and sales management. Peter has an extensive background in organizational development, business development, sales management, negotiating and P&L management. Peter holds a B.S. degree in Biology from Northern Illinois University.

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