snn_Current_Folio_6K_Press_Release_Restatement

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

 

Form 6-K

 

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16 of the

Securities Exchange Act of 1934

 

March 25, 2019

 

Commission File Number 001-14978

 

SMITH & NEPHEW plc

(Registrant’s name)

 

15 Adam Street

London, England, WC2N 6LA

(Address of principal executive offices)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

 

Form 20-F          Form 40-F __

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1).

 

Yes                          No 

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7).

 

Yes                          No 

 

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing information to the Commission pursuant to Rule 12g3-2 (b) under the Securities Exchange Act of 1934.

 

Yes                          No 

 

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2 (b) : 82-  n/a.

 

 

 

 


 

Smith & Nephew plc

INDEX TO EXHIBITS

Item 1. Press release entitled “Re-presented Historical Quarterly Revenue Analysis”, dated March 25, 2019.

 

 


 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

 

 

 

Smith & Nephew plc

 

 

(Registrant)

 

 

 

 

 

 

Date: March 25, 2019

By:

/s/ Susan Swabey

 

 

Susan Swabey

 

 

Company Secretary

 

 

 

 

 


 

 

 

 

 

 

Re-presented Historical Quarterly Revenue Analysis

25 March 2019

Smith & Nephew plc (LSE:SN, NYSE:SNN) has updated its revenue reporting in line with its previously announced new commercial structure.

From 1 January 2019 the Group will report quarterly revenue for three global franchises of Orthopaedics, Sports Medicine & ENT, and Advanced Wound Management, replacing the previous franchise structure. The Group’s revenue reporting by geography is unchanged.

Included within Orthopaedics are the following businesses:

·

Knee Implants

·

Hip Implants

·

Other Reconstruction, including capital sales from robotics and cement (Other Reconstruction was previously reported within Other Surgical Businesses)

·

Trauma (including certain extremities products)

 

Included within Sports Medicine & ENT are the following businesses:

·

Sports Medicine Joint Repair (including certain extremities products for joint repair previously reported within Trauma & Extremities)

·

Arthroscopic Enabling Technologies

·

ENT (ENT was previously reported within Other Surgical Businesses)

 

Advanced Wound Management is unchanged, and includes the following businesses:

·

Advanced Wound Care

·

Advanced Wound Bioactives

·

Advanced Wound Devices

 

Reporting by geography is unchanged, as follows:

·

US

·

Other Established Markets (Australia, Canada, Europe, Japan and New Zealand)

·

Emerging Markets 

The updated reporting approach is in line with International Financial Reporting Standard (IFRS) 8 Operating Segments that require companies’ segment reporting to reflect the way in which performance is monitored, operating decisions are made and resources are allocated.

 

In order to assist future comparability with historical data, Smith & Nephew has set out below quarterly and full year revenue under the new structure for 2018 and 2017. There has been no change in total revenue for any period presented. 

 

 

 


 

Enquiries

 

 

Investors

 

Andrew Swift, Smith & Nephew

+44 (0) 20 7960 2285

 

 

Media

 

Charles Reynolds, Smith & Nephew

+44 (0) 1923 477314

 

 

Ben Atwell / Andrew Ward, FTI Consulting

+44 (0) 20 3727 1000

 

Notes

Unless otherwise specified as ‘reported’ all revenue growth throughout this document is ‘underlying’ after adjusting for the effects of currency translation and including the comparative impact of acquisitions and excluding disposals. All percentages compare to the equivalent 2017 period.

Underlying revenue growth is used to compare the revenue in a given period to the comparative period on a like-for-like basis. Underlying revenue growth reconciles to reported revenue growth, the most directly comparable financial measure calculated in accordance with IFRS, by making adjustments for the effect of acquisitions and disposals and the impact of movements in exchange rates (currency impact), as described below.

The effect of acquisitions and disposals measures the impact on revenue from newly acquired business combinations and recent business disposals. This is calculated by comparing the current year, constant currency actual revenue (which include acquisitions and exclude disposals from the relevant date of completion) with prior year, constant currency actual revenue, adjusted to include the results of acquisitions and exclude disposals for the commensurate period in the prior year.

The ‘constant currency exchange effect’ is a measure of the increase/decrease in revenue resulting from currency movements on non-US Dollar sales and is measured as the difference between: 1) the increase/decrease in the current year revenue translated into US Dollars at the current year average exchange rate and the prior revenue translated at the prior year rate; and 2) the increase/decrease being measured by translating current and prior year revenues into US Dollars using the prior year closing rate.

About Smith & Nephew

Smith & Nephew is a portfolio medical technology business with leadership positions in Orthopaedics, Advanced Wound Management and Sports Medicine. Smith & Nephew has more than 16,000 employees and a presence in more than 100 countries. Annual sales in 2018 were $4.9 billion. Smith & Nephew is a member of the FTSE100 (LSE:SN, NYSE:SNN). For more information about Smith & Nephew, please visit our corporate website www.smith-nephew.com and follow us on TwitterLinkedIn or Facebook.

Forward-looking Statements

This document may contain forward-looking statements that may or may not prove accurate. For example, statements regarding expected revenue growth and trading margins, market trends and our product pipeline are forward-looking statements. Phrases such as "aim", "plan", "intend", "anticipate", "well-placed", "believe", "estimate", "expect", "target", "consider" and similar expressions are generally intended to identify forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause actual results to differ materially from what is expressed or implied by the statements. For Smith & Nephew, these factors include: economic and financial conditions in the markets we serve, especially those affecting health care providers, payers and customers; price levels for established and innovative medical devices; developments in medical technology; regulatory approvals, reimbursement decisions or other government actions; product defects or recalls or other problems with quality management systems or failure to comply with related regulations; litigation relating to patent or other claims; legal compliance risks and related investigative, remedial or enforcement actions; disruption to our supply chain or operations or those of our suppliers; competition for qualified personnel; strategic actions, including acquisitions and dispositions, our success in performing due diligence, valuing and integrating acquired businesses; disruption that may result from transactions or other changes we make in our business plans or organisation to adapt to market developments; and numerous other matters that affect us or our markets, including those of a political, economic, business, competitive or reputational nature. Please refer to the documents that Smith & Nephew has filed with the U.S. Securities and Exchange Commission under the U.S. Securities Exchange Act of 1934, as amended, including Smith & Nephew's most recent annual report on Form 20-F, for a discussion of certain of these factors. Any forward-looking statement is based on information available to Smith & Nephew as of the date of the statement. All written or oral forward-looking statements attributable to Smith & Nephew are qualified by this caution. Smith & Nephew does not undertake any obligation to update or revise any forward-looking statement to reflect any change in circumstances or in Smith & Nephew's expectations.

Trademark of Smith & Nephew. Certain marks registered US Patent and Trademark Office.

2


 

Smith & Nephew Re-presented 2018 Results

First Quarter 2018 Consolidated Re-presented Revenue Analysis

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

31 March 

 

1 April

 

Reported 

 

Underlying 

 

Acquisitions 

 

Currency 

 

 

2018 

 

2017 

 

growth 

 

Growth(i

 

/disposals 

 

impact 

Consolidated revenue by franchise

    

$m 

    

$m 

    

    

    

    

Orthopaedics

 

544

 

522

 

 4

 

 -

 

 -

 

 4

Knee Implants

 

259

 

244

 

 6

 

 2

 

 -

 

 4

Hip Implants

 

155

 

152

 

 2

 

 -2 

 

 -

 

 4

Other Reconstruction

 

13

 

10

 

34

 

30

 

 -

 

 4

Trauma

 

117

 

116

 

 1

 

 -2 

 

 -

 

 3

 

 

 

 

 

 

 

 

 

 

 

 

 

Sports Medicine & ENT

 

362

 

340

 

 6

 

 1

 

 1

 

 4

Sports Medicine Joint Repair

 

175

 

155

 

12

 

 5

 

 2

 

 5

Arthroscopic Enabling Technologies

 

152

 

153

 

 -

 

 -5 

 

 -

 

 5

ENT

 

35

 

32

 

 9

 

 6

 

 -

 

 3

 

 

 

 

 

 

 

 

 

 

 

 

 

Advanced Wound Management

 

290

 

280

 

 4

 

 -2 

 

 -

 

 6

Advanced Wound Care

 

183

 

170

 

 8

 

 -

 

 -

 

 8

Advanced Wound Bioactives

 

59

 

66

 

 -11 

 

 -12 

 

 -

 

 1

Advanced Wound Devices

 

48

 

44

 

10

 

 2

 

 -

 

 8

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

1,196

 

1,142

 

 5

 

 -

 

 -

 

 5

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated revenue by geography

 

 

 

 

 

 

 

 

 

 

 

 

US

 

545

 

555

 

 -2 

 

 -2 

 

 -

 

-

Other Established Markets(ii)

 

446

 

409

 

 9

 

 -2 

 

 -

 

11

Total Established Markets

 

991

 

964

 

 3

 

 -2 

 

 -

 

 5

Emerging Markets

 

205

 

178

 

15

 

 9

 

 -

 

 6

Total

 

1,196

 

1,142

 

 5

 

 -

 

 -

 

 5

 

(i)

Underlying growth is defined in the Notes on page 2

(ii)

Other Established Markets are Australia, Canada, Europe, Japan and New Zealand

3


 

Second Quarter 2018 Consolidated Re-presented Revenue Analysis

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

30 June 

 

1 July 

 

Reported 

 

Underlying 

 

Acquisitions 

 

Currency 

 

 

2018 

 

2017 

 

growth 

 

Growth(i) 

 

/disposals 

 

impact 

Consolidated revenue by franchise

    

$m 

    

$m 

    

    

    

    

Orthopaedics

 

548

 

531

 

 3

 

 1

 

 -

 

 2

Knee Implants

 

258

 

246

 

 5

 

 3

 

 -

 

 2

Hip Implants

 

156

 

150

 

 4

 

 1

 

 -

 

 3

Other Reconstruction

 

16

 

13

 

28

 

27

 

 -

 

 1

Trauma

 

118

 

122

 

 -4 

 

 -5 

 

 -

 

 1

 

 

 

 

 

 

 

 

 

 

 

 

 

Sports Medicine & ENT

 

368

 

345

 

 7

 

 3

 

 2

 

 2

Sports Medicine Joint Repair

 

177

 

159

 

12

 

 7

 

 3

 

 2

Arthroscopic Enabling Technologies

 

153

 

151

 

 1

 

 -1 

 

 -

 

 2

ENT

 

38

 

35

 

 7

 

 5

 

 -

 

 2

 

 

 

 

 

 

 

 

 

 

 

 

 

Advanced Wound Management

 

329

 

318

 

 4

 

 1

 

 -

 

 3

Advanced Wound Care

 

187

 

177

 

 6

 

 2

 

 -

 

 4

Advanced Wound Bioactives

 

87

 

92

 

 -5 

 

 -6 

 

 -

 

 1

Advanced Wound Devices

 

55

 

49

 

12

 

 9

 

 -

 

 3

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

1,245

 

1,194

 

 4

 

 2

 

 -

 

 2

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated revenue by geography

 

 

 

 

 

 

 

 

 

 

 

 

US

 

590

 

582

 

 1

 

 1

 

 -

 

-

Other Established Markets(ii)

 

429

 

403

 

 6

 

 1

 

 -

 

 5

Total Established Markets

 

1,019

 

985

 

 3

 

 1

 

 -

 

 2

Emerging Markets

 

226

 

209

 

 8

 

 6

 

 -

 

 2

Total

 

1,245

 

1,194

 

 4

 

 2

 

 -

 

 2

 

(i)

Underlying growth is defined in the Notes on page 2

(ii)

Other Established Markets are Australia, Canada, Europe, Japan and New Zealand

4


 

Third Quarter 2018 Consolidated Re-presented Revenue Analysis

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

29 September 

 

30 September 

 

Reported 

 

Underlying 

 

Acquisitions 

 

Currency 

 

 

2018 

 

2017 

 

growth 

 

Growth(i) 

 

/disposals 

 

impact 

Consolidated revenue by franchise

    

$m 

    

$m 

    

    

    

    

Orthopaedics

 

505

 

494

 

 2

 

 5

 

 -

 

 -3 

Knee Implants

 

232

 

228

 

 1

 

 4

 

 -

 

 -3 

Hip Implants

 

142

 

140

 

 2

 

 4

 

 -

 

 -2 

Other Reconstruction

 

13

 

10

 

37

 

43

 

 -

 

 -6 

Trauma

 

118

 

116

 

 2

 

 3

 

 -

 

 -1 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sports Medicine & ENT

 

345

 

336

 

 3

 

 3

 

 2

 

 -2 

Sports Medicine Joint Repair

 

171

 

157

 

 9

 

 8

 

 3

 

 -2 

Arthroscopic Enabling Technologies

 

138

 

144

 

 -4 

 

 -2 

 

 -

 

 -2 

ENT

 

36

 

35

 

 3

 

 5

 

 -

 

 -2 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advanced Wound Management

 

319

 

322

 

 -1 

 

 1

 

 -

 

 -2 

Advanced Wound Care

 

184

 

186

 

 -1 

 

 1

 

 -

 

 -2 

Advanced Wound Bioactives

 

81

 

86

 

 -7 

 

 -7 

 

 -

 

 -

Advanced Wound Devices

 

54

 

50

 

 9

 

11

 

 -

 

 -2 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

1,169

 

1,152

 

 2

 

 3

 

 -

 

 -1 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated revenue by geography

 

 

 

 

 

 

 

 

 

 

 

 

US

 

569

 

545

 

 4

 

 4

 

 -

 

-

Other Established Markets(ii)

 

393

 

407

 

 -3 

 

 -1 

 

 -

 

 -2 

Total Established Markets

 

962

 

952

 

 1

 

 2

 

 -

 

 -1 

Emerging Markets

 

207

 

200

 

 4

 

10

 

 -

 

 -6 

Total

 

1,169

 

1,152

 

 2

 

 3

 

 -

 

 -1 

 

(i)

Underlying growth is defined in the Notes on page 2

(ii)

Other Established Markets are Australia, Canada, Europe, Japan and New Zealand

5


 

Fourth Quarter 2018 Consolidated Re-presented Revenue Analysis

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

31 December 

 

31 December 

 

Reported 

 

Underlying 

 

Acquisitions 

 

Currency 

 

 

2018 

 

2017 

 

growth 

 

Growth(i) 

 

/disposals 

 

impact 

Consolidated revenue by franchise

    

$m 

    

$m 

    

    

    

    

Orthopaedics

 

571

 

560

 

 2

 

 4

 

 -

 

 -2 

Knee Implants

 

269

 

266

 

 1

 

 3

 

 -

 

 -2 

Hip Implants

 

160

 

157

 

 2

 

 4

 

 -

 

 -2 

Other Reconstruction

 

19

 

13

 

43

 

45

 

 -

 

 -2 

Trauma

 

123

 

124

 

 -1 

 

 1

 

 -

 

 -2 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sports Medicine & ENT

 

386

 

382

 

 1

 

 2

 

 1

 

 -2 

Sports Medicine Joint Repair

 

193

 

179

 

 8

 

 8

 

 2

 

 -2 

Arthroscopic Enabling Technologies

 

157

 

167

 

 -6 

 

 -4 

 

 -

 

 -2 

ENT

 

36

 

36

 

 1

 

 3

 

 -

 

 -2 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advanced Wound Management

 

337

 

336

 

 -

 

 2

 

 -

 

 -2 

Advanced Wound Care

 

185

 

187

 

 -1 

 

 2

 

 -

 

 -3 

Advanced Wound Bioactives

 

94

 

97

 

 -3 

 

 -3 

 

 -

 

 -

Advanced Wound Devices

 

58

 

52

 

11

 

14

 

 -

 

 -3 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

1,294

 

1,278

 

 1

 

 3

 

 -

 

 -2 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Consolidated revenue by geography

 

 

 

 

 

 

 

 

 

 

 

US

 

649

 

624

 

 4

 

 3

 

 1

 

-

Other Established Markets(ii)

 

427

 

439

 

 -3 

 

 -

 

 -

 

 -3 

Total Established Markets

 

1,076

 

1,063

 

 1

 

 2

 

 -

 

 -1 

Emerging Markets

 

218

 

215

 

 2

 

 8

 

 -

 

 -6 

Total

 

1,294

 

1,278

 

 1

 

 3

 

 -

 

 -2 

 

(i)

Underlying growth is defined in the Notes on page 2

(ii)

Other Established Markets are Australia, Canada, Europe, Japan and New Zealand

6


 

Full Year 2018 Consolidated Re-presented Revenue Analysis

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

31 December 

 

31 December 

 

Reported 

 

Underlying 

 

Acquisitions 

 

Currency 

 

 

2018 

 

2017 

 

growth 

 

Growth(i) 

 

/disposals 

 

impact 

Consolidated revenue by franchise

    

$m 

    

$m 

    

    

    

    

Orthopaedics

 

2,168

 

2,107

 

 3

 

 3

 

 -

 

-

Knee Implants

 

1,017

 

984

 

 3

 

 3

 

 -

 

-

Hip Implants

 

613

 

599

 

 2

 

 2

 

 -

 

-

Other Reconstruction

 

62

 

45

 

36

 

36

 

 -

 

-

Trauma

 

476

 

479

 

 -

 

 -1 

 

 -

 

 1

 

 

 

 

 

 

 

 

 

 

 

 

 

Sports Medicine & ENT

 

1,461

 

1,402

 

 4

 

 2

 

 2

 

-

Sports Medicine Joint Repair

 

717

 

650

 

10

 

 7

 

 2

 

 1

Arthroscopic Enabling Technologies

 

600

 

615

 

 -2 

 

 -3 

 

 -

 

 1

ENT

 

144

 

137

 

 5

 

 5

 

 -

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

Advanced Wound Management

 

1,275

 

1,256

 

 2

 

 -

 

 -

 

 2

Advanced Wound Care

 

740

 

720

 

 3

 

 1

 

 -

 

 2

Advanced Wound Bioactives

 

320

 

342

 

 -6 

 

 -6 

 

 -

 

-

Advanced Wound Devices

 

215

 

194

 

10

 

 9

 

 -

 

 1

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

4,904

 

4,765

 

 3

 

 2

 

 -

 

 1

 

 

 

 

 

 

 

 

 

 

 

 

 

 Consolidated revenue by geography

 

 

 

 

 

 

 

 

 

 

US

 

2,354

 

2,306

 

 2

 

 1

 

 1

 

-

Other Established Markets(ii)

 

1,693

 

1,658

 

 2

 

 -

 

 -

 

 2

Total Established Markets

 

4,047

 

3,964

 

 2

 

 1

 

 -

 

 1

Emerging Markets

 

857

 

801

 

 7

 

 8

 

 -

 

 -1 

Total

 

4,904

 

4,765

 

 3

 

 2

 

 -

 

 1

 

(i)

Underlying growth is defined in the Notes on page 2

(ii)

Other Established Markets are Australia, Canada, Europe, Japan and New Zealand

 

7