Hull FTSE giant Smith & Nephew raised its 2019 revenue growth target for the third time after a strong three months of sales.
The medical equipment manufacturer, one of Hull’s biggest employers, saw sales rise by 6.5 per cent between July and the end of September, compared to the same period in 2018.
Smith & Nephew’s orthopaedics and sports medicine department performed particularly well, as the FTSE 100 business continued its strong performance in 2019.
In what was the final full quarter before current CEO Namal Nawana steps down from his role, Smith & Nephew raised its full-year expectations for 2019.
The company now expects revenue to grow by as much as 4.5 per cent this year.
Graham Baker, chief financial officer, said: "We're pleased to have delivered organic revenue growth of four per cent in the third quarter, a further step towards growing at or above our markets.
"We've built momentum across the first nine months of the year and, at the same time, continued to invest behind our commercial teams and acquisitions to support sustained success over the medium-term.
“As a result, we're confident to increase 2019 revenue guidance again."
Smith & Nephew has had a busy 2019 so far.
Earlier this year, the manufacturer completed the acquisition of American medicine firm Osiris Therapeutics in a deal worth more than £500m.
It also wrapped up a takeover of medical tech company Ceterix for £80m, as Smith & Nephew turned its attention to acquisitions to drive growth.
Delivering its figures for Q3 – between July and the end of September – Smith & Nephew said since acquiring Osiris, the US firm had “delivered a second quarter of double-digit growth.”
Total sales at Smith & Nephew in the last three months hit $1.25bn, up four per cent on an underlying basis.
Revenue from its orthopaedics section grew by 3.4 per cent, with knee implant sales up 4.6 per cent.
Hip implant revenue was up 2.6 per cent, and it was also good news in Smith & Nephew’s trauma department, which saw sales rise by 2.2 per cent.
Quarter three followed a strong first half of 2019 for the historic Hull business.
Sales at Smith & Nephew hit $2.49bn in the first six months of the year – up from $2.44bn in the same period in 2018.
Earlier this year, Smith & Nephew increased its full-year revenue growth target to 3.5 per cent.
It has now pushed that figure further, and said revenue could grow by as much as 4.5 per cent in 2019.
The strong performance from Smith & Nephew comes as the FTSE manufacturer prepares to enter a new chapter of its journey.
Current CEO Namal Nawana, who joined the company 19 months ago, will leave the role next month.
He will be succeeded by Roland Diggelmann, who joined the business as a non-executive director last year.
Mr Nawana said: "There is clear momentum behind our strategy laid out last year, underlined by the company's performance generated by our team during 2019.
“I am proud to be leaving Smith & Nephew in a strong position for the next phase of its development."
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