Smith+Nephew appoints new CEO as medical device maker navigates pandemic
Adds details on CEO, earnings, background, chairman comment
February 22 (Reuters) – Smith+Nephew SN.L named Siemens Healthineers AG SHLG.DE Deepak Nath as the new chief executive on Tuesday to succeed Roland Diggelmann after the medical products maker narrowly missed analysts’ estimate for full-year profit.
Diggelmann was recruited by Smith+Nephew after his former boss left his salary at the end of 2019, and the British company was counting on his more than 20 years of experience in the orthopedic and diagnostic sectors to accelerate the growth of its income.
However, the pandemic hit soon after, forcing hospitals to delay surgeries and elective services to accommodate COVID-19 patients, and slumping demand for hip and knee replacement surgeries. business, while supply chain issues have also weighed it down.
The UK company’s revenue rose 10.3% to $5.21 billion in the 12 months to December 31 on an underlying basis, recovering steadily from 2020, while trading profit was $936 million, compared to $683 million the previous year.
Healthcare networks around the world are once again under pressure from the novel coronavirus variant Omicron, and the company is targeting underlying revenue growth in the range of 4.0% to 5.0% for 2022.
“(Deepak Nath) joins us at an inflection point for the business and will bring his drive, experience and expertise to lead the team as we execute on our rapid growth strategy,” said Chairman Roberto. Quarter in a press release.
Analysts had expected a profit of $945 million for 2021 on sales of $5.22 billion at the median, a consensus provided by the company showed.
(Reporting by Pushkala Aripaka in Bengaluru; Editing by Subhranshu Sahu)
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