Smith & Nephew plc Annual Report 2025

Smith & Nephew plc has released its Annual Report for the fiscal year 2025, detailing significant progress and outlining a new strategic direction. The company completed its three-year "12-Point Plan," which focused on operational improvements, restoring performance in its Orthopaedics business, accelerating growth in Sports Medicine and Wound Management, and embedding a culture of accountability. Financially, the company reported a revenue of $6,164 million, a 6.1% increase on a reported basis and 5.3% on an underlying basis. Trading profit rose by 15.5% to $1,211 million, with a trading profit margin of 19.7%. Free cash flow significantly improved by 52.5% to $840 million. The company also launched its new "RISE" strategy for the next three years, aiming to reach more patients, drive innovation, scale through strategic investment, and execute efficiently. Key financial targets for 2028 include an organic revenue CAGR of 6-7%, a trading profit CAGR of 9-10%, free cash flow exceeding $1 billion, and an adjusted ROIC of 12-13%. The report highlights investments in R&D, a new product pipeline, and sustainability efforts.