(Reuters) – Artificial hip and knee maker Smith+Nephew <SN.L> raised its full-year revenue forecast on Wednesday after reporting a better-than-expected first-half profit, boosted by higher overall demand and growth in emerging markets.
China, with a sales surge of more than 30% in the second quarter, was a bright spot for the company, as its established markets, including the United States, stabilise after a shaky 2018. The U.S. market accounts for about half of its revenue.
Sales from emerging markets rose 16.2% in the quarter ended June 29.
Demand from emerging markets will continue to lift Smith+Nephew as patient populations grow and medical expertise improves, Chief Executive Officer Namal Nawana had told Reuters in May.
The company now expects 2019 underlying revenue to grow between 3% and 4%. In May, it had raised its growth expectation to the higher end of its 2.5% to 3.5% forecast range.
Trading profit of 45.8 cents per share for the six months beat analysts’ average expectation of 44.9 cents, according to a company-compiled consensus http://www.smith-nephew.com/investor-centre/reporting/analyst-consensus of 14 analysts.
Its unit that provides joint replacements for sports injuries and services for tonsil procedures posted a 5.6% growth.
Total revenue rose 3.9% to $2.49 billion on an underlying basis.
(Reporting by Pushkala Aripaka in Bengaluru; Editing by Anil D’Silva)