Review from our Chairman and Chief Executive
- John Buchanan
- Chairman
- David J. Illingworth
- Chief Executive
Introduction
Smith & Nephew increased reported revenues by 13% to $3,801 million compared to 2007, an underlying sales growth of 6% and a similar increase in trading profit. All of our businesses reported underlying sales growth for the year. These notable achievements were against the backdrop of the slowdown in the global economy and a number of industry-wide and company specific issues.
In Orthopaedics we achieved better sales force alignment in our US reconstruction and trauma segments, improving the focus of these businesses with our customers. Although Europe was held back by the issues in the former Plus Orthopedics Holding AG ("Plus") businesses we acquired in 2007, our US business had a strong finish to the year.
Endoscopy again delivered double digit revenue growth outside the US. In the US we enhanced the sales force management and are investing further in its development.
Advanced Wound Management had its best year of revenue growth for five years led by a strong performance in Europe. We launched our new Negative Pressure Wound Therapy ("NPWT") products and released an enhanced range during the first quarter of 2009.
During the year we formed a dedicated Biologics unit, bringing together the research programmes and skills from across our Group, focusing on advanced, locally delivered biological therapies to promote healing and pain relief. This is one of our investments for Smith & Nephew's long-term future.
In our Earnings Improvement Programme ("EIP"), which we started two years ago, we continue to make good progress. We have started combining some of the Group's back office functions so that we can leverage our scale, which we are calling our One Company Programme, as well as increasing the efficiency of our manufacturing operations and logistics.
We are focused on extending our track record of delivering innovative products and meeting the needs of our customers. We do not see our business as immune to economic conditions, but we believe that the benefits we provide to patients and health providers in enabling people to return to an active life, will enable us to be resilient in this difficult macro-economic environment. There may be tougher times ahead, but Smith & Nephew is in good shape to continue to deliver sustainable long-term growth for our shareholders.