Smith & Nephew revenue slumps as Covid-19 hits elective surgeries
Medical equipment firm Smith & Nephew saw its revenue almost halve in April as elective surgeries were put on hold due to the coronavirus outbreak.
Revenue fell 7.6 per cent to $1.1bn (£885m) in the first quarter as the Covid-19 crisis took its toll in all three of the firm’s global franchises.
Smith & Nephew said the company was hardest hit in China, where revenue was down almost 50 per cent.
While trading in China has since picked up, the company said its revenue had crashed 47 per cent in April due to widespread cancellations of elective surgeries such as hip and knee implants and sports medicine.
As a result, Smith & Nephew warned its second-quarter revenue and first-half trading margin would be “substantially lower” than the previous year.
“Countries and healthcare systems around the world are facing an unprecedented challenge, and we are seeing a significant short-term impact on Smith & Nephew,” said chief executive Roland Diggelmann.
“While there is still much uncertainty, Smith & Nephew has the financial strength to withstand this period and, as demand increases, we are ready to step up and support customers through our robust supply chain, innovative products and some new ways of working.”
The healthcare firm said it had rolled out cost-cutting measures to save $200m, adding it was focused on ensuring its sales force and supply chain was ready as markets recover.
The Covid-19 downturn comes just a month after Smith & Nephew reported record sales for 2019, propelled by rising demand for its products in emerging markets.