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Smith & Nephew Maintains Dividend For 2021 Despite Q4 Earnings Hit By COVID-19; Shares Drop

  • Medical device maker Smith & Nephew plc (NYSE: SNN) slips in the premarket after reporting a slump in revenues and profits. Full-year 2020 revenue fell 11.2% Y/Y to $4.6 billion, and operating profit dropped over 60% to $295 million.
  • COVID-19 related restrictions swamped other patient care areas, particularly the elective surgeries that require Smith & Nephew’s replacement prosthetic hips and knees.
  • For 2020, the trading profit of $683 million almost halved from $1.17 billion recorded for 2019.
  • Cash generated from operations reached $972 million in 2020, down from $1,370 million a year ago.
  • The company declared a full-year dividend of 37.5 cents per share, unchanged from 2019.
  • For 2021, the company expects the COVID-19 impact to continue into the first half of 2021. The timing of recovery remains unclear.
  • Smith & Nephew chief executive Roland Diggelmann said: “We start 2021 with three clear priorities: to return to top-line growth and recapture momentum; to drive further operational improvement; to continue to respond effectively to COVID-19.”
  • See the Q4 earnings presentation here.
  • Price Action: SNN stock dropped 2.93% at $42.68 in the premarket trading on the last check Thursday.

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Posted-In: Covid-19Earnings News Guidance Dividends Health Care General

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