Smith & Nephew turns attention to emerging economies to counteract tough European market
Olivier Bohuon, the new chief executive of the FTSE 100 medical technology giant Smith & Nephew, will announce plans to grow the business in emerging markets next month.
Mr Bohuon has been reviewing Smith & Nephew's strategy since he succeeded Dave Illingworth in April. It is understood that he wants to stamp his mark on the group by emphasising sales opportunities in fast-growing countries, such as China, where the group has a small presence relative to its other operations.
An industry source said Mr Bohuon is likely to provide details at the company's first-half results announcement on 5 August.
Management has previously hinted at a slight refocus at an analysts' presentation in May. Smith & Nephew pointed out that government austerity measures meant that the European market remained tough, while China and India grew strongly, "albeit from a low base".
Mr Bohuon would be keen to offer investors a clear vision for the future of Smith & Nephew, as the artificial hip and knee-maker has long had to fend off rumours of its being a takeover target for US rivals such as Johnson & Johnson and Biomet.
However, Mr Bohuon did inherit a position of relative strength. In February's full-year results, Mr Illingworth announced that net debt had nearly halved to $500m (£307m) while trading profit was up 11 per cent on 2009 to $969m.
Smith & Nephew's strong performance last year helped the share price recover from a 12-month low of 537.5p to 742p earlier this year. It is now trading at around 660p, valuing the group at nearly £6bn.
Mr Bohuon joined the 155-year-old group from the French pharmaceuticals company Pierre Fabre, where he was chief executive. Mr Illingworth left after nine years at Smith & Nephew, the last four of which were as chief executive.
Subscribe to Independent Premium to bookmark this article
Want to bookmark your favourite articles and stories to read or reference later? Start your Independent Premium subscription today.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies