Smith & Nephew(SNN)

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Smith+Nephew announces new category I CPT® code for its CARTIHEAL™ AGILI-C™ Cartilage Repair Implant
Globenewswire· 2025-10-09 16:30
Smith+Nephew (LSE:SN, NYSE:SNN), the global medical technology company, today announces that the American Medical Association (AMA) CPT Editorial Panel has established a Category I Current Procedural Terminology (CPT) code for procedures involving its CARTIHEAL AGILI-C Cartilage Repair Implant, effective January 1, 2027. The new CPT code recognizes the clinical significance and growing adoption of the CARTIHEAL Implant, a single-stage, off-the-shelf solution for treating cartilage and osteochondral defects ...
Smith+Nephew announce latest scientific data supporting new ALLEVYN™ COMPLETE CARE 5-Layer Foam Dressing for pressure injury prevention
Globenewswire· 2025-10-03 15:53
Smith+Nephew (NYSE:SNN; LSE:SN), the global medical technology business, is pleased to announce exciting new data from Professor Amit Gefen and his research group published in the International Wound Journal,1 demonstrating the pressure injury prevention mechanism of action of ALLEVYN COMPLETE CARE Foam Dressing and its ability to absorb and dissipate friction and shear forces. Pressure injuries are localized damage to the skin or underlying tissue, resulting from prolonged exposure to pressure in combinati ...
Smith+Nephew unveils major clinical evidence and patient access updates for its REGENETEN™ Bioinductive Implant
Globenewswire· 2025-09-11 12:00
Core Insights - Smith+Nephew announces new evidence supporting the clinical performance of its REGENETEN Bioinductive Implant, aimed at treating rotator cuff tears and other tendon injuries [1][4] - The American Academy of Orthopaedic Surgeons (AAOS) has updated its Clinical Practice Guideline to highlight the benefits of bioinductive implants in rotator cuff repair, indicating lower re-tear rates and improved patient outcomes [2][5] - A randomized controlled trial (RCT) showed a 65% relative reduction in re-tear rates with the REGENETEN Implant compared to standard repair methods [4][6] Product Performance - The REGENETEN Bioinductive Implant has been used in over 150,000 procedures globally since its introduction in 2014, significantly impacting the treatment of tendon injuries [5][7] - Two-year re-tear rates were reported at 12.3% for the REGENETEN Implant versus 35.1% for standard repair, demonstrating its effectiveness [6][7] - The implant supports natural healing processes by facilitating the formation of new tissue, enhancing surgical repair outcomes [7][8] Market Expansion - Smith+Nephew is now able to market the REGENETEN Bioinductive Implant for extra-articular ligament injuries in the US, expanding its application beyond rotator cuff repairs [4][8] - Initial focus for this new indication will be on hip capsule repair, with potential for future expansions into other ligament repairs [4][8] Company Overview - Smith+Nephew is a global medical technology company focused on the repair, regeneration, and replacement of soft and hard tissue, with annual sales of $5.8 billion in 2024 [11] - The company operates in approximately 100 countries and employs around 17,000 people, dedicated to improving patient outcomes through innovative technologies [10][11]
SNN vs. SYK: Which Stock Is the Better Value Option?
ZACKS· 2025-08-15 16:40
Core Insights - The article compares Smith & Nephew (SNN) and Stryker (SYK) to determine which stock is more attractive to value investors [1] Valuation Metrics - Smith & Nephew has a Zacks Rank of 2 (Buy), indicating an improving earnings outlook, while Stryker has a Zacks Rank of 3 (Hold) [3] - SNN's forward P/E ratio is 18.40, significantly lower than SYK's forward P/E of 28.06 [5] - SNN has a PEG ratio of 1.01, while SYK's PEG ratio is 2.75, suggesting SNN is more reasonably priced relative to its expected earnings growth [5] - SNN's P/B ratio is 2.9, compared to SYK's P/B of 6.83, indicating SNN is undervalued relative to its book value [6] - These metrics contribute to SNN's Value grade of B and SYK's Value grade of D, highlighting SNN as the superior value option [6][7]
Smith & Nephew: Doing Better And Still Offers Value
Seeking Alpha· 2025-08-07 15:37
Core Insights - The article does not provide specific insights or analysis regarding any companies or industries, focusing instead on disclaimers and disclosures related to the author's positions and affiliations [1][2]. Summary by Categories - **Company Analysis**: No specific company analysis or insights are provided in the article [1][2]. - **Industry Insights**: The article lacks any detailed industry insights or trends [1][2].
Smith & Nephew(SNN) - 2025 Q2 - Quarterly Report
2025-08-05 10:00
[Smith+Nephew Second Quarter and First Half 2025 Results](index=4&type=section&id=Smith%2BNephew%20Second%20Quarter%20and%20First%20Half%202025%20Results) [Financial and Operational Highlights](index=4&type=section&id=Financial%20and%20Operational%20Highlights) The company reported strong H1 2025 results with accelerated revenue growth, margin expansion, and improved cash flow H1 & Q2 2025 Key Financial Metrics | Metric | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | $2,961m | $2,827m | 4.7% (Reported) | | Underlying Revenue Growth | 5.0% | - | - | | Trading Profit | $523m | $471m | 11.2% | | Trading Profit Margin | 17.7% | 16.7% | +100 bps | | EPSA (cents) | 42.9¢ | 37.6¢ | 14.1% | | Free Cash Flow | $244m | $39m | 528.3% | | **Metric** | **Q2 2025** | **Q2 2024** | **Change (%)** | | Revenue | $1,553m | $1,441m | 7.8% (Reported) | | Underlying Revenue Growth | 6.7% | - | - | - The company announced a **$500 million share buyback** to be conducted in the second half of 2025, reflecting strong cash generation and balance sheet health[16](index=16&type=chunk)[28](index=28&type=chunk) - Full-year 2025 guidance remains unchanged, with expected underlying revenue growth of **around 5.0%** and a trading profit margin between **19.0% and 20.0%**[16](index=16&type=chunk)[75](index=75&type=chunk)[76](index=76&type=chunk) - The 12-Point Plan transformation is delivering sustained higher revenue growth, increased profitability, and better cash generation[14](index=14&type=chunk)[16](index=16&type=chunk) [Detailed Performance Review](index=8&type=section&id=Detailed%20Performance%20Review) Performance was driven by the 12-Point Plan and new products, leading to margin expansion and strong cash flow - Products launched in the last five years contributed to **three-quarters of the revenue growth** in the first half of 2025[15](index=15&type=chunk)[29](index=29&type=chunk) - The 12-Point Plan has driven operational improvements, leading to a **100bps trading profit margin expansion to 17.7%** in H1 2025[21](index=21&type=chunk)[25](index=25&type=chunk) - Cash generation significantly improved, with H1 trading cash flow **up 71.5% to $487 million** and free cash flow increasing to **$244 million** from $39 million in H1 2024[26](index=26&type=chunk)[27](index=27&type=chunk) - Inventory management improved, with Day Sales of Inventory (DSI) **reduced by 46 days** year-on-year, resulting in a **$69 million reduction** in inventory value on a constant currency basis[27](index=27&type=chunk)[69](index=69&type=chunk) [Innovation and Clinical Evidence](index=10&type=section&id=Innovation%20and%20Clinical%20Evidence) - Key product launches in H1 2025 included the LEGION medial stabilised inserts for knees, TRIGEN MAX Tibia Nailing System, and ALLEVYN Ag+ SURGICAL for wound management[30](index=30&type=chunk)[34](index=34&type=chunk) - Received FDA clearance for CORIOGRAPH Pre-Operative Planning for total shoulder replacement, expanding the CORI Surgical System's capabilities to all major joint replacements[31](index=31&type=chunk) - Expanded the indication for the REGENETEN Bioinductive Implant to include extra-articular ligament injuries in the US, starting with hip capsule repair[32](index=32&type=chunk) - Published new clinical evidence supporting key products, including superior 20-year survivorship for OXINIUM Technology in hip replacements and lower re-tear rates with REGENETEN in rotator cuff repairs[36](index=36&type=chunk)[37](index=37&type=chunk)[39](index=39&type=chunk) [Q2 2025 Business Unit and Geographic Performance](index=12&type=section&id=Q2%202025%20Business%20Unit%20and%20Geographic%20Performance) Q2 2025 Underlying Revenue Growth by Business Unit | Business Unit | Q2 2025 Underlying Growth (%) | | :--- | :--- | | Orthopaedics | 5.0% | | Sports Medicine & ENT | 5.7% | | Advanced Wound Management | 10.2% | | **Total** | **6.7%** | - Orthopaedics growth was driven by a sequential improvement in Reconstruction (**3.1% underlying growth**) and strong performance in Other Reconstruction (**39.8% underlying growth**) from CORI Surgical System sales[44](index=44&type=chunk)[45](index=45&type=chunk)[48](index=48&type=chunk) - Sports Medicine & ENT grew **10.2% (underlying)** excluding China, which was impacted by Volume Based Procurement (VBP); Sports Medicine Joint Repair grew **13.7%** outside of China[50](index=50&type=chunk)[51](index=51&type=chunk) - Advanced Wound Management saw strong double-digit growth, led by a rebound in Advanced Wound Bioactives (**18.6% underlying growth**) and continued strength in Advanced Wound Devices (**12.7% underlying growth**)[56](index=56&type=chunk)[57](index=57&type=chunk)[58](index=58&type=chunk) Q2 2025 Underlying Revenue Growth by Geography | Geography | Q2 2025 Underlying Growth (%) | | :--- | :--- | | US | 8.7% | | Other Established Markets | 7.4% | | Emerging Markets | -0.2% | [First Half 2025 Consolidated Analysis](index=18&type=section&id=First%20Half%202025%20Consolidated%20Analysis) The company achieved 5.0% underlying revenue growth and a 100bps trading profit margin expansion to 17.7% H1 2025 Profit Reconciliation ($m) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Revenue | 2,961 | 2,827 | | Operating profit | 429 | 328 | | **Trading profit** | **523** | **471** | H1 2025 Earnings Per Share Reconciliation (cents) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | EPS (Basic) | 33.5 | 24.5 | | **EPSA (Adjusted)** | **42.9** | **37.6** | - The H1 trading profit margin **increased by 100bps to 17.7%**, driven by revenue leverage and savings from the 12-Point Plan, partially offset by inflation and China VBP[62](index=62&type=chunk) - By business unit, H1 trading profit margin **increased 230bps in Orthopaedics**, declined 130bps in Sports Medicine & ENT (due to China VBP), and increased 160bps in Advanced Wound Management[63](index=63&type=chunk) - Group net debt was stable at **$2.7 billion** as of June 28, 2025, with a net debt to adjusted EBITDA ratio of **1.8x**[70](index=70&type=chunk) [Capital Allocation, Dividend and Outlook](index=20&type=section&id=Capital%20Allocation%2C%20Dividend%20and%20Outlook) The company announced a dividend increase and a $500 million share buyback while maintaining its full-year 2025 outlook - The interim dividend for 2025 is **15.0¢ per share**, a **4.2% increase** from the prior year[16](index=16&type=chunk)[72](index=72&type=chunk) - A share buyback of **$500 million** is planned for the second half of 2025, enabled by strong cash generation[73](index=73&type=chunk)[74](index=74&type=chunk) Full Year 2025 Guidance (Unchanged) | Metric | FY 2025 Guidance | | :--- | :--- | | Underlying Revenue Growth | ~5.0% | | Reported Revenue Growth | ~5.5% | | Trading Profit Margin | 19.0% to 20.0% | - The outlook includes an expected net negative impact of approximately **$15 to $20 million** from tariffs in 2025[77](index=77&type=chunk) [2025 Half Year Consolidated Interim Financial Statements](index=26&type=section&id=2025%20HALF%20YEAR%20CONSOLIDATED%20INTERIM%20FINANCIAL%20STATEMENTS) [Unaudited Financial Statements](index=26&type=section&id=Unaudited%20Financial%20Statements) The interim statements show increased profit, stable total assets, and significantly improved operating cash flow - The Group Income Statement reports a **profit of $293 million** for H1 2025, compared to $214 million for H1 2024[85](index=85&type=chunk) - The Group Balance Sheet shows **total assets of $10,692 million** and **total equity of $5,536 million** as of June 28, 2025[87](index=87&type=chunk) - The Group Cash Flow Statement indicates net cash inflow from operating activities was **$396 million** in H1 2025, up from $238 million in H1 2024[88](index=88&type=chunk) - The Group Statement of Changes in Equity shows total equity increased from $5,265 million at the start of the year to **$5,536 million** at the end of H1 2025[90](index=90&type=chunk) [Notes to the Condensed Consolidated Interim Financial Statements](index=30&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Statements) [Basis of Preparation and Segment Information](index=30&type=section&id=Basis%20of%20Preparation%20and%20Segment%20Information) Financials are prepared under IAS 34 on a going concern basis, with results reported across three business segments - The interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting[93](index=93&type=chunk) - The Directors have adopted the going concern basis of accounting, concluding the Group has sufficient resources for at least 12 months from the approval date[94](index=94&type=chunk)[96](index=96&type=chunk) H1 2025 Revenue by Reportable Segment ($m) | Segment | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Orthopaedics | 1,193 | 1,149 | | Sports Medicine & ENT | 923 | 888 | | Advanced Wound Management | 845 | 790 | | **Total** | **2,961** | **2,827** | H1 2025 Segment Trading Profit ($m) | Segment | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Orthopaedics | 151 | 119 | | Sports Medicine & ENT | 213 | 217 | | Advanced Wound Management | 187 | 162 | | **Total Segment Trading Profit** | **551** | **498** | [Key Financial Notes (Tax, Dividends, Debt)](index=38&type=section&id=Key%20Financial%20Notes%20(Tax%2C%20Dividends%2C%20Debt)) The effective tax rate was 19.1%, an interim dividend was approved, and net debt remained stable at $2.75 billion - The reported tax charge for H1 2025 was $69m, with an **effective tax rate of 19.1%**; the Group forecasts a Pillar Two current tax charge of approximately **$27m** for the full year 2025[121](index=121&type=chunk)[122](index=122&type=chunk) - An interim dividend of **15.0 US cents per ordinary share** was approved by the Board on July 30, 2025, payable on November 7, 2025[124](index=124&type=chunk) - Net debt as of June 28, 2025 was **$2,747 million**, including lease liabilities; the company has committed facilities of **$4.2 billion**[95](index=95&type=chunk)[133](index=133&type=chunk) - The company was in compliance with its principal financial covenant (leverage ratio <3.5x) on its private placement debt as of June 28, 2025[135](index=135&type=chunk) [Other Information](index=50&type=section&id=Other%20Information) [Non-IFRS Financial Measures](index=50&type=section&id=Non-IFRS%20Financial%20Measures) This section defines and reconciles non-IFRS measures used by management to assess like-for-like performance - Underlying revenue growth adjusts reported revenue for constant currency exchange effects and the impact of acquisitions and disposals[166](index=166&type=chunk) - Trading profit is defined as operating profit excluding items such as acquisition-related costs, restructuring charges, and significant legal expenses[166](index=166&type=chunk) - A detailed reconciliation table is provided, showing the adjustments from IFRS measures (Operating Profit, Profit Before Tax, EPS) to their non-IFRS 'Trading' equivalents (Trading Profit, Trading Profit Before Tax, EPSA)[171](index=171&type=chunk) - Free cash flow is reconciled from 'cash generated from operations' by adjusting for capital expenditure, interest, lease payments, and taxes[183](index=183&type=chunk)
Smith & Nephew(SNN) - 2025 H1 - Earnings Call Transcript
2025-08-05 08:32
Financial Data and Key Metrics Changes - The company reported revenue of $3 billion in the first half, reflecting a 5% underlying growth compared to the same period in 2024, with reported revenue up 4.7% [22][24] - Gross profit was £2.1 billion, resulting in a gross margin of 70.5%, a 40 basis point increase from the prior year [24] - Profit grew 11.2% to £523 million, with a margin of 17.7%, up 100 basis points [25][32] - Free cash flow increased over 500% to £244 million, with expectations to exceed £600 million for the full year [36][38] Business Unit Performance Changes - Orthopedics grew 4.1%, while Sports Medicine and ENT also grew 4.1%, with underlying growth excluding China at 9% [23] - Advanced Wound Management grew 7.1%, with notable contributions from bioactives and single-use negative pressure platforms [19][20] - The robotics segment in orthopedics saw a growth of 39.8%, reflecting strong placements in the U.S. [13] Market Performance Changes - The U.S. market grew 8.7%, while other established markets grew 7.4%. Emerging markets saw a slight decline of 0.2%, but excluding China, they grew by 12.2% [7][8] - The company expects the headwinds from China to ease in the second half of the year as distributor destocking reduces [10][39] Company Strategy and Industry Competition - The company is focused on maintaining a higher growth trajectory, with 75% of growth in H1 coming from products launched in the last five years [44][46] - The 12 plan aims to enhance operational efficiencies and drive accountability, with a target of £325 to £375 million in savings from 2023 to 2027 [30][31] - The company plans to launch new products and expand its offerings in robotics and sports medicine, enhancing its competitive position [45][49] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year growth targets despite uncertainties, including tariff impacts and market conditions [4][53] - The company anticipates a step-up in margin in the second half, driven by operational savings and easing headwinds from China [27][38] - Management highlighted the importance of innovation and product launches in sustaining revenue growth [43][44] Other Important Information - The company announced a $500 million share buyback program for 2025, funded by operational efficiencies and cash flow [5][37] - Inventory management has improved, with a reduction in days of inventory to 506 days, aligning with the company's focus on operational efficiency [32][34] Q&A Session Summary Question: Is there upside to the 5% revenue target for the full year? - Management feels good about guidance for the full year, acknowledging both positives and negatives affecting revenue [51][52] Question: Can you provide details on margin guidance and the potential for achieving the upper end of the margin range? - Management expects a step-up in margin in the second half, with operational savings and tariff impacts balancing out [53][59] Question: What is being done to address the softness in U.S. knees? - Management noted a focus on higher volume accounts and portfolio rationalization, which may impact top-line growth but improve margins [54][56]
Smith & Nephew(SNN) - 2025 H1 - Earnings Call Transcript
2025-08-05 08:30
Financial Data and Key Metrics Changes - The company reported a revenue of $1.6 billion for the quarter, reflecting a 6.7% underlying growth and a 7.8% reported growth, aided by a 110 basis point tailwind from foreign exchange [5][21] - Gross profit was £2.1 billion, resulting in a gross margin of 70.5%, which is a 40 basis point increase from the prior year [23] - Profit grew 11.2% to £523 million with a margin of 17.7%, up 100 basis points [24] - Trading cash flow increased by 70% with almost $250 million of free cash flow in the first half [4][33] - Earnings per share grew 37% to 33.5¢, and adjusted earnings per share grew 14% to 42.9¢ [31] Business Unit Performance Changes - Orthopedics grew 5.5% underlying, with total reconstruction robotics growing 5.2% [7] - Sports Medicine and ENT grew 5.7% in the quarter, with joint repair growth at 8.4% [13] - Advanced Wound Management saw growth increase to 10.2%, driven by a rebound in bioactives [16] - Trauma and extremities grew 4.4%, with the ATOS growth contribution steadily increasing [12] Market Performance Changes - The US market grew 8.7%, while other established markets grew 7.4% [6] - Emerging markets declined by 0.2%, but excluding China, they grew by 12.2% [6] - The company expects the headwind from China to ease in the second half of the year [6][8] Company Strategy and Industry Competition - The company is focused on maintaining a higher growth trajectory, with a target of 5% growth for the full year [50] - A $500 million share buyback is planned for 2025, funded by operational efficiencies [4][35] - The company is undergoing a transformation plan aimed at improving operational efficiencies and margin expansion [49] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year margin guidance of 19% to 20%, despite uncertainties related to tariffs [3][36] - The company anticipates a step-up in margin in the second half, driven by cost savings and reduced headwinds from China [36] - Management noted that the impacts of volume-based procurement in China are expected to ease [6][36] Other Important Information - The company has implemented a zero-based budgeting approach, targeting gross run rate savings of £325 to £375 million from 2023 through 2027 [29] - Inventory management has improved, with a reduction in days of inventory to 506 days [32] Q&A Session Summary Question: Is there upside to the 5% revenue target for the full year? - Management feels good about guidance for the full year, noting both positives and negatives in the outlook [50][52] Question: Can you walk us through the bridge in H2 margin? - Management expects a step-up in margin in the second half, with various factors influencing the margin guidance [61] Question: What is being done regarding US knees? - Management highlighted sequential improvement in US orthopedics and discussed efforts to refocus on higher volume accounts [54][56] Question: What are the drivers of operating savings in H2? - Savings are coming from procurement, warehousing, distribution, and other areas, with visibility on achieving these savings [76] Question: What is the outlook for inventory levels? - Management expects continued improvement in inventory levels, particularly in orthopedics, with good progress noted [92]
Smith & Nephew(SNN) - 2025 H1 - Earnings Call Presentation
2025-08-05 07:30
Financial Performance - Total revenue for Q2 2025 was $1,553 million, with underlying revenue growth of +6.7% and reported growth of +7.8%[13] - H1 2025 revenue reached $2,961 million, a 4.7% reported growth compared to $2,827 million in H1 2024[36] - H1 2025 trading profit margin was 17.7%, a +100 bps expansion compared to 16.7% in H1 2024[36] - Adjusted Earnings Per Share (EPSA) for H1 2025 was 42.9¢, a 14.1% increase from 37.6¢ in H1 2024[47] - Free cash flow for H1 2025 was $244 million, significantly improved from $39 million in H1 2024[53] Business Segment Performance - Orthopaedics revenue in Q2 2025 was $615 million, with underlying growth of +5.0%[16] - Sports Medicine & ENT revenue in Q2 2025 was $479 million, with underlying growth of +5.7%[19] - Advanced Wound Management (AWM) revenue in Q2 2025 was $459 million, with underlying growth of +10.2%[27] Regional Performance - US revenue in Q2 2025 grew by +8.7% to $827 million[13] - Emerging Markets revenue in Q2 2025 decreased by -0.2% to $256 million, but grew +12.2% excluding China[13] Strategic Initiatives - A $500 million share buyback is planned for H2 2025, funded by 2025 cash flow and existing balances[9] - The company is targeting total gross run-rate savings of approximately $325-375 million in 2027 through efficiency opportunities[44]
SNN or SYK: Which Is the Better Value Stock Right Now?
ZACKS· 2025-07-28 16:41
Core Insights - Smith & Nephew (SNN) is currently rated as a better value opportunity compared to Stryker (SYK) based on various financial metrics and rankings [1][7] Valuation Metrics - SNN has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while SYK has a Zacks Rank of 3 (Hold) [3] - The forward P/E ratio for SNN is 16.03, significantly lower than SYK's forward P/E of 30.22, suggesting SNN is undervalued [5] - SNN's PEG ratio is 0.97, while SYK's PEG ratio is 2.99, further indicating SNN's better value proposition [5] - SNN has a P/B ratio of 2.63 compared to SYK's P/B of 7.36, reinforcing SNN's favorable valuation metrics [6] - These metrics contribute to SNN's Value grade of A and SYK's Value grade of D, highlighting the disparity in their valuation [6]