A slowdown in China and oil-dependent countries in the Middle East saw demand fall for its products resulting in dampened sales of $1.13 billion in the three months to 31 March.
The FTSE 100 member makes artificial limbs as well as dressings and ointments for hard to heal wounds, such as diabetic foot ulcers.
It also offers a range of minimally invasive surgical tools to repair damaged joints and ligaments, such as digital cameras, lights and electro-mechanical blades to assist with surgery.
While demand for its products in emerging markets fell 6% year-on-year, US sales were 8% higher at $563 million while those in established markets improved by 4% to $421 million.
Numis’ analysts remain upbeat. ‘While S&N’s emerging market exposure (13% of revenue in Q1) increases volatility in the near-term, we believe this platform is positioning the group for higher growth in the medium term.
‘In summary, a weaker than anticipated start to the year but we believe that positive US/ established market momentum is reassuring for nearer term outlook.’
Despite the mixed start to the year, management at London’s largest medical technology company have maintained guidance for the year.
Numis expects sales to rise 4.3% to $4.8 billion and pre-tax profits to remain flat at around $1 billion.