Smith+Nephew Second Quarter and First Half 2025 Results

Strong revenue growth, trading margin expansion and free cash flow; full year guidance unchanged; $500 million share buyback announced

Smith+Nephew (LSE:SN, NYSE:SNN), the global medical technology company, reports results for the second quarter and first half ended 28 June 2025:

Download the full announcement (pdf)

H1 Highlights^1,2

• H1 underlying revenue growth was 5.0%. Reported revenue growth was 4.7% including -30bps FX headwind. There were two fewer trading days in the period versus the prior year
• Trading profit up 11.2% with 100bps of trading profit margin expansion to 17.7% (H1 2024: 16.7%), driven by revenue leverage and accelerated operational savings. Operating profit increased by 30.6%
• Strong cash generation, with trading cashflow of $487 million (H1 2024: $284 million) and trading cash conversion up 33 percentage points to 93% (H1 2024: 60%), driven by favourable working capital movements
• Free cash flow increased to $244 million (H1 2024: $39 million); lower restructuring charge of $8 million (H1 2024: $62 million)
• EPSA up 14.1% to 42.9¢ (H1 2024: 37.6¢); EPS up 36.6% to 33.5¢ (H1 2024: 24.5¢)
  
  

Q2 Trading Highlights^1,2

• Underlying revenue growth accelerated to 6.7%. Reported growth was 7.8% including 110bps FX tailwind. There was one fewer trading day in the period versus the prior year
• All regions and all the three business units grew ahead of Q1
• Orthopaedics underlying revenue growth of 5.0% (reported growth 5.8%) with both Global and US Reconstruction sequentially improving from Q1
• Sports Medicine & ENT underlying revenue growth up 5.7% (reported growth 6.8%). Excluding China, underlying revenue growth was 10.2% (reported growth 11.4%)
• Advanced Wound Management underlying revenue growth of 10.2% (reported growth 11.4%), including rebound in Advanced Wound Bioactives
  
  

Interim Dividend and Share Buyback

• Interim dividend up 4.2% to 15.0¢ (H1 2024: 14.4¢)
• Announcing additional return of $500 million to shareholders via share buyback in the second half of 2025, while retaining our leverage, and without compromising our growth plans. This reflects strong cash generation and balance sheet

Full Year 2025 Guidance Unchanged^1,2

• Underlying revenue growth is expected to be around 5.0% (reported growth 5.5%), and trading profit margin is expected to expand to between 19.0% and 20.0%
• Continued higher cadence of product launches and clinical evidence to underpin further growth
• Unchanged outlook includes an expected net impact of $15 to $20 million from tariffs in 2025, based on announced measures, and mitigations, as previously announced

Deepak Nath, Chief Executive Officer, said:

“I’m pleased with our strong performance in the first half of 2025. We are delivering sustained higher revenue growth, increased profitability and better cash generation. As expected, revenue growth accelerated in the second quarter, with all regions and business units contributing. We saw a quarter-on-quarter improvement in our Orthopaedics business, and this was the fourth consecutive quarter of sequential improvement from US Reconstruction & Robotics on an average daily sales basis. 

“Recent product launches are driving growth across all business units, with US Hip Implants becoming another example of the innovation driven growth that is central to our strategy. We maintained our high cadence of launches in H1 with new products in Knee Implants, Robotics, Trauma, Sports Medicine and Advanced Wound Care. New products launched in the last five years accounted for three-quarters of our first half growth.

“The operational improvements we have made under the 12-Point Plan are increasingly translating into better financial performance. We are on track for our full year revenue growth target, a significant step-up in profitability and strong free-cash generation, and are announcing a $500 million share buyback. There is more to be done, but the transformation of Smith+Nephew is starting to deliver substantial value.”

Analyst conference call

An analyst conference call to discuss Smith+Nephew’s second quarter and first half results will be held today at 8.30am BST / 3.30am EDT, details of which are available on the Smith+Nephew website at https://www.smith-nephew.com/en/who-we-are/investors.

Enquiries

Notes

1. Unless otherwise specified as ‘reported’ all revenue growth throughout this document is ‘underlying’ after adjusting for the effects of currency translation and including the comparative impact of acquisitions and excluding disposals. All percentages compare to the equivalent 2024 period.
   
   ‘Underlying revenue growth’ reconciles to reported revenue growth, the most directly comparable financial measure calculated in accordance with IFRS, by making two adjustments, the ‘constant currency exchange effect’ and the ‘acquisitions and disposals effect’, described below. See Other Information on pages 30 to 35 for a reconciliation of underlying revenue growth to reported revenue growth.
   
   The ‘constant currency exchange effect’ is a measure of the increase/decrease in revenue resulting from currency movements on non-US Dollar sales and is measured as the difference between: 1) the increase/decrease in the current year revenue translated into US Dollars at the current year average exchange rate and the prior year revenue translated at the prior year rate; and 2) the increase/decrease being measured by translating current and prior year revenues into US Dollars using the same exchange rate.
   
   The ‘acquisitions and disposals effect’ is the measure of the impact on revenue from newly acquired material business combinations and recent material business disposals. This is calculated by comparing the current year, constant currency actual revenue (which includes acquisitions and excludes disposals from the relevant date of completion) with prior year, constant currency actual revenue, adjusted to include the results of acquisitions and exclude disposals for the commensurate period in the prior year. These sales are separately tracked in the Group’s internal reporting systems and are readily identifiable.
   
   
2. Certain items included in ‘trading results’, such as trading profit, trading profit margin, tax rate on trading results, trading cash flow, trading profit to cash conversion ratio, EPSA and underlying growth are non-IFRS financial measures. The non-IFRS financial measures reported in this announcement are explained in Other Information on pages 30 to 35 and are reconciled to the most directly comparable financial measures prepared in accordance with IFRS. Reported results represent IFRS financial measures as shown in the Condensed Consolidated Interim Financial Statements.
   
   

Smith+Nephew Second Quarter Trading and First Half 2025 Results

We are pleased to report a strong first half performance. Our transformation programme is delivering revenue growth consistently above historical levels, improved trading profit margin and a significant step-up in cash generation. This progress is built upon the operational improvements made through the 12-Point Plan and our consistent ability to successfully launch new innovation. While there remains further opportunity to drive productivity and asset efficiency, the first half puts us on track to meet our 2025 targets on revenue growth, profitability and cash-flow, enabling us to return $500 million to shareholders through a share buyback in the second half while maintaining our leverage, and without compromising our growth plans.

Delivering higher revenue growth

First half revenue was $2,961 million (H1 2024: $2,827 million), reflecting underlying revenue growth of 5.0%. Reported revenue growth was 4.7%, including a -30bps headwind from foreign exchange. There were two fewer trading days in the first half versus the prior year.

Second quarter revenue was $1,553 million (Q2 2024: $1,441 million), reflecting underlying revenue growth of 6.7%. Reported revenue growth was 7.8%, including a 110bps tailwind from foreign exchange. The second quarter of 2025 comprised 63 trading days, one fewer than the same period of 2024.

The second quarter performance included a sequential acceleration across all the three business units and all regions. In Orthopaedics, our Reconstruction business improved both in the US and internationally. In Sports Medicine, we maintained our recent good momentum across Sports Medicine Joint Repair and Arthroscopic Enabling Technologies outside of China. In Advanced Wound Management, we delivered double-digit growth led by Advanced Wound Devices and a rebound in Advanced Wound Bioactives.

Improved profit margin, cash generation and capital returns 

Trading profit for the first half was up 11.2% to $523 million (H1 2024: $471 million). The trading profit margin was 17.7% (H1 2024: 16.7%), a 100bps improvement on the prior year. Operating profit increased 30.6% to $429 million (H1 2024: $328 million).

We made significant progress to improve our cash flow in 2024, and this continued in the first half of 2025. Cash generated from operations was up 54.3% to $568 million (H1 2024: $368 million) and trading cash flow was up 71.5% to $487 million (H1 2024: $284 million). The trading profit to cash conversion ratio improved 33 percentage points to 93% (H1 2024: 60%).

Restructuring costs reduced by $54 million to $8 million (H1 2024: $62 million) as we near completion of the 12-Point Plan. We also brought down Day Sales of Inventory (DSI) by 46 days year-on-year, a $69 million reduction in inventory value on a constant currency basis (reported reduction: $24 million including a foreign exchange impact of $45 million). Free cash flow increased to $244 million (H1 2024: $39 million).

This strong cash generation will enable us to undertake a share buyback to return $500 million to shareholders in the second half of 2025, while maintaining our leverage, and without compromising our growth plans.

Driving growth through innovation

Innovation has been a major contributor in our transformation to a higher growth business. Across 2023 and 2024 more than half of our underlying revenue growth came from products launched in the previous five years. This success continued in the first half, with three-quarters of growth coming from products launched in the last five years. We also introduced new products across all three global business units, which we are confident will help us sustain our improved revenue growth profile.

In Orthopaedics, new products included LEGION^◊ medial stabilised inserts, addressing a fast-growing category of inserts now used in more than 30% of US knee replacement, and the TRIGEN^◊ MAX Tibia Nailing System for stable and unstable fractures of the tibia, which builds on more than two decades of proven performance and industry-leading design from our TRIGEN Nails portfolio.

We also continued to invest behind the recent launches of the CATALYSTEM^◊ Primary Hip System and the AETOS^◊ Shoulder System, both of which were important growth drivers in the first half. On our CORI^◊ Surgical System, we received FDA-clearance for CORIOGRAPH^◊ Pre-Operative Planning and Modelling Services in total shoulder replacement during the second quarter, expanding the offering to now cover all major joint replacement procedures - Knee, Hip and Shoulder. Offering both image-free and image-based registration, CORIOGRAPH is another element in our approach of supporting a range of procedures and surgeon preferences on CORI.

In Sports Medicine, we continue to expand the indication range for our REGENETEN^◊ Bioinductive Implant. For the first time, Smith+Nephew is able to market REGENETEN for extra-articular ligament injuries in the US, creating opportunities to reach more patients with soft tissue injuries around the body. The initial focus is hip capsule repair with future expansion planned in other extra-articular ligament repairs.

In July, we announced the release of the Q-FIX^◊ KNOTLESS All-Suture Anchor for soft tissue-to-bone fixation indications across multiple joint spaces including Shoulder, Hip, and Foot & Ankle. This new option builds on the long-standing success and performance of the best-in-class anchor fixation strength of the Q-FIX Family.

In Advanced Wound Management, we initiated the US launch of ALLEVYN^◊ Ag+ SURGICAL, a new antimicrobial silver dressing which adds to the established ALLEVYN family of foam dressings. ALLEVYN Ag+ SURGICAL dressing features new ComfortSTAY^◊ Technology for gentle silicone adhesion and HighFLEX^◊ Technology to provide flexibility and comfort during patient movement.

These new products are expected to have multi-year growth runways ahead and we have an exciting pipeline of further launches and line extensions planned in the second half of 2025 and beyond.

Supporting adoption through clinical evidence

In addition to new products, we also announced a number of evidence milestones during the first half of 2025, supporting the adoption of key product families. 

In Orthopaedics, the latest annual report from the Australian Orthopaedic Association National Joint Replacement Registry highlighted that the combination of our proprietary OXINIUM^◊ Technology on highly cross-linked polyethylene has the highest survivorship rate (94.1%) among all bearing combinations over a 20-year period for total hip arthroplasty, corroborating similar findings in other national registries. A recently published randomised controlled trial (RCT) of Smith+Nephew’s handheld robotic system demonstrated the value for patients and surgeons of robotic-assisted total knee replacement with JOURNEY^◊ II BCS. Patients experienced significantly better outcomes, including reduced pain, improved function, and higher satisfaction, compared to conventional surgery at one year. Also, JOURNEY II UK with OXINIUM Technology demonstrated excellent early survivorship when used with Smith+Nephew’s handheld robotics, recording 100% survivorship at one year in the UK National Joint Registry.

In Sports Medicine, we expanded the evidence base for REGENETEN^◊ Bioinductive Implant with an RCT showing that augmentation of medium and large full-thickness rotator cuff repairs with REGENETEN resulted in significantly lower re-tear rates at two years compared to repair alone. Five-year results for CARTIHEAL AGILI-C^◊ Cartilage Repair Implant were presented at the American Orthopaedic Society for Sports Medicine annual conference in July. The study showed that CARTIHEAL AGILI-C maintained superior knee function compared to the standard of care and reduced the long-term risk of total knee arthroplasty or osteotomy.

In Advanced Wound Management, a comparative study involving over 10,000 Caesarean section patients showed that the PICO^◊ single-use Negative Pressure Wound Therapy (sNPWT) system led to fewer surgical site infections and complications, and cost savings compared to an alternative sNPWT system.

Second quarter 2025 trading update

Consolidated revenue analysis for the second quarter

1. Restated for reclassification of robotics consumables revenue from Other Reconstruction to Knee and Hip implants

(ii) Underlying growth is defined in Note 1 on page 3

(iii) Other Reconstruction includes robotics capital sales and cement

(iv) Other Established Markets are Europe, Japan, Australia, Canada and New Zealand

Orthopaedics

Our Orthopaedics business unit delivered underlying revenue growth of 5.0% (reported growth 5.8%) in the quarter.

Globally, Reconstruction delivered a sequential improvement on the first quarter, with underlying revenue growth of 3.1% (reported growth 3.9%) versus underlying revenue growth of 0.0% (reported decline -1.6%) in the first quarter. Within this, Knee Implants underlying revenue growth was 2.9% (reported growth 3.7%) and Hip Implants underlying revenue growth was 3.4% (reported growth 4.2%) for the second quarter.

In the US, Reconstruction delivered underlying and reported revenue growth of 2.0%, an acceleration from 1.3% in the first quarter. Here, Knee Implants declined
-1.5% and Hip Implants grew 7.4% in the second quarter. On an average daily sales (ADS) basis, which removes the effect of the one fewer trading day year-on-year, second quarter revenue growth was 0.1% in Knee Implants and 9.1% in Hip Implants (see Other Information on pages 30 to 35). US knee performance reflects, in part, some slowing in procedures towards the end of the quarter among our surgeon base, as well as our on-going work to improve operational efficiency and increase profitability by streamlining the portfolio and focusing on higher-volume customers, supporting the 230bps trading profit margin increase in the first half. The strong US hip performance includes benefit from the new CATALYSTEM^◊ Primary Hip System as we continue to build the US launch. On an ADS basis, this was the fourth consecutive quarter of sequential improvement in revenue growth from our US Reconstruction & Robotics business.

Outside the US, Knee Implants benefitted from the timing of a tender order in the Middle East. China has been a headwind to Reconstruction growth in recent quarters due to destocking at distributors. Inventory levels have continued to come down, and were approaching more normal levels at the end of the quarter.

Other Reconstruction underlying revenue growth was 39.8% (reported growth 42.4%), including strong growth from our CORI Surgical System with its recently expanded range of features and applications, as described above. Growth was across both existing customers and competitive accounts, and we continued to make good progress placing CORIs in both Ambulatory Surgery Centers (ASC) and Teaching Institutes.

Trauma & Extremities underlying revenue growth was 4.4% (reported growth 5.0%). The EVOS^◊ Plating System continues to be a key growth driver and revenue from the new AETOS Shoulder System is steadily increasing as we invest behind the roll-out.

Sports Medicine & ENT

Our Sports Medicine & ENT business unit delivered underlying revenue growth of 5.7% (reported growth 6.8%) in the quarter. Underlying revenue growth was 10.2% (reported growth 11.4%) excluding China which is impacted by Volume Based Procurement (VBP).

Sports Medicine Joint Repair underlying revenue growth was 8.4% (reported growth 9.6%), including China VBP, which we expect to begin to annualise from the third quarter as we lap the start of implementation. Underlying revenue growth outside of China was 13.7% (reported growth excluding China: 14.9%), led by our shoulder and hip repair portfolios. We delivered strong double-digit growth from our REGENETEN Bioinductive Implant. Recent product launches, including Q-FIX KNOTLESS All-Suture Anchor and in foot and ankle repair, also contributed to the good quarterly performance.

Arthroscopic Enabling Technologies delivered underlying revenue growth of 2.3% (reported growth 3.5%). Continuing the trend seen last quarter, performance reflects headwinds in China where the sector is preparing for an expected additional VBP process on mechanical resection blades and COBLATION^◊ wands in the second half of 2025. Underlying revenue growth excluding China was 6.6% (reported growth excluding China 7.8%), led by our COBLATION and patient positioning business lines.

ENT underlying revenue growth was 3.6% (reported growth 4.1%), with good growth in nose driven by our ARIS^◊ COBLATION turbinates business offset by some softness in the US tonsils and adenoids market.

Advanced Wound Management

Advanced Wound Management underlying revenue growth was 10.2% (reported growth 11.4%), a step-up from the first quarter.

Advanced Wound Care underlying revenue growth was 2.6% (reported growth 4.6%), with growth in foams, films and skin care offset by a decline in infection management.

Advanced Wound Bioactives underlying revenue growth was 18.6% (reported growth 18.5%) reflecting strong double-digit growth in skin substitutes, a sequential rebound in SANTYL^◊, along with a weak comparator prior year period. Proposed updates to Medicare reimbursement of skin substitutes in the outpatient and physician office were announced during the quarter, including moving to a single payment.  Since no products were excluded from participating in the market, it is unclear how clinical practice will be impacted. While the details of the proposal are yet to be finalised, we anticipate that this will be a headwind to both Advanced Wound Management sales and profitability in 2026, before any mitigating actions.

Advanced Wound Devices underlying revenue growth was 12.7% (reported growth 14.4%) with double-digit growth from our NPWT portfolio and LEAF^◊ Patient Monitoring System. During the quarter we were awarded a contract to supply the RENASYS^◊ TOUCH Negative Pressure Wound Therapy system to the United States Department of Defense for up to 10-years, succeeding in a competitive tender process having demonstrated clinical efficacy and operational fitness including portability, an intuitive interface, and the ability to allow a range of therapy modes. This contract is worth up to $75 million.

Performance by region

All regions delivered a sequential improvement in growth in the second quarter. Established Markets delivered underlying revenue growth of 8.2% (reported growth 9.7%). Underlying revenue growth was 8.7% in the US (reported growth 8.7%) and 7.4% in Other Established Markets (reported growth 11.6%). The Emerging Markets underlying revenue decline of -0.2% (reported decline -1.2%) reflected the weakening of the headwinds from China, as expected. Emerging Markets underlying revenue growth excluding China was 12.2% (reported growth excluding China 10.4%).

First Half 2025 Consolidated Analysis

Smith+Nephew results for the first half ended 28 June 2025:

1. See Other Information on pages 30 to 35

First Half 2025 Analysis

Our first half revenue was $2,961 million (H1 2024: $2,827 million), representing underlying revenue growth of 5.0% and reported revenue growth of 4.7% including a -30bps headwind from foreign exchange. The first half comprised 125 trading days, two days less than the equivalent period in 2024.

The gross profit was $2,091 million (H1 2024: $1,974 million) with a gross profit margin of 70.6% (H1 2024: 69.8%). We continued to maintain strong gross profit margins whilst delivering revenue growth, resulting in operating leverage. Operating profit increased 30.6% on a reported basis to $429 million (H1 2024: $328 million).

Trading profit for the first half was up 11.2% on a reported basis to $523 million (H1 2024: $471 million). The trading profit margin strengthened by 100bps to 17.7% (H1 2024: 16.7%). This increase was driven by the benefits of revenue leverage and manufacturing, distribution and operating expense savings, some of which were brought forward from the second half, partially offset by input cost inflation and China VBP.

Orthopaedics first half trading profit margin increased 230bps to 12.7%, reflecting 12-Point Plan transformation initiatives including inventory reduction, improved capital efficiency, portfolio rationalisation and our focus on higher volume accounts. Sports Medicine & ENT trading profit margin declined 130bp to 23.1%, reflecting the China VBP headwind. Advanced Wound Management trading profit margin increased 160bps to 22.1%, driven by leverage from the strong revenue growth. (see Note 2 to the Interim Financial Statements for global business unit trading profit).

Restructuring costs decreased year-on-year to $8 million (H1 2024: $62 million), and included costs related to 12-Point Plan efficiency and productivity work (see Note 2 to the Financial Statements).

The net interest charge within reported results was $54 million (H1 2024: $61 million).

Our reported tax for the period ended 28 June 2025 was a charge of $69 million (H1 2024: $39 million). The first half tax rate on trading results of 19.8% (H1 2024: 17.8%) was calculated using full year projections, applied to trading profits for the first half and includes non-recurring tax credits arising in this period. The applicable rate of corporate income tax has been applied to the actual non-trading items in the period on an item-by-item basis. See Note 3 to the Interim Financial Statements and Other Information on pages 30 to 35 for further details on taxation.

Adjusted earnings per share (‘EPSA’) increased by 14.1% to 42.9¢ (85.8¢ per ADS) (H1 2024: 37.6¢ per share). Basic earnings per share (‘EPS’) was 33.5¢ (67.0¢ per ADS) (H1 2024: 24.5¢ per share), reflecting acquisition and disposal related items, restructuring costs, amortisation and impairment of acquisition intangibles and legal and other items incurred.

Cash generated from operations was up to $568 million (H1 2024: $368 million) and trading cash flow was up to $487 million (H1 2024: $284 million) with the year on year increase primarily driven by favourable working capital movement (see Other Information on pages 30 to 35 for a reconciliation between cash generated from operations and trading cash flow). As a result of the working capital movement, the trading profit to cash conversion ratio improved to 93% (H1 2024: 60%). Free cash flow improved to $244 million (H1 2024: $39 million).

We continued to make progress addressing our high-inventory, reducing DSI by 46 days year-on-year, with DSI down across all business units. The reduction in DSI delivered a $69 million reduction in inventory value on a constant currency basis (reported reduction: $24 million including a foreign exchange impact of $45 million). This remains an area of focus, with the new Sales, Inventory & Operations Planning (SIOP) process, introduced under the 12-Point Plan, bringing better alignment of production plans and commercial delivery.

Group net debt as of 28 June 2025 was $2.7 billion (31 December 2024: $2.7 billion), with committed facilities of $4.2 billion (see Note 6 to the Financial Statements). The net debt to adjusted EBITDA ratio was 1.8x.

Interim Dividend and Share Buyback

Smith+Nephew’s capital allocation framework prioritises the use of cash and informs our investment decisions.

Our first priority is investing in the business to drive organic growth and meet our sustainability targets.

The second priority is to invest in acquisitions, targeting new technologies in high growth segments with a strong strategic fit that meet our financial criteria.

The third priority is to maintain an optimal balance sheet and appropriate dividend. Here we will continue to target investment grade credit ratings with a target leverage ratio of around 2x net debt to adjusted EBITDA. We have a progressive dividend policy and from 2025 onwards we expect a payout of around 35% to 40% of EPSA. The interim payment will be 40% of the prior full year. The interim dividend for 2025 is therefore 15.0¢ per share (30.0¢ per ADS), a 4.2% increase year-on-year (2024: 14.4¢).

Our final priority is to return any surplus capital to shareholders, subject to the above balance sheet metrics. Following the 12-Point Plan transformation, Smith+Nephew has become strongly cash generative. As a result, we are announcing a share buyback in the second half of 2025 to return $500 million to shareholders while maintaining our leverage, and without compromising our growth plans.

Outlook

Our full year guidance for 2025 is unchanged as we target another year of strong revenue growth and a significant step-up in trading profit margin, notwithstanding the uncertainties around the imposition of tariffs.

We expect underlying revenue growth to be around 5% (around 5.5% based on exchange rates prevailing on 31 July 2025).

Full year trading profit margin is expected to be in the range of 19.0% to 20.0%. While some cost savings initiatives were delivered earlier than expected, benefiting the first half trading profit margin, we continue to expect the margin to be stronger in the second half as the impact of headwinds in China reduce and other operational savings are delivered.

Our unchanged outlook includes an expected net impact of around $15 to $20 million from tariffs in 2025, based on announced measures, and mitigations, as previously announced.

We continue to expect to drive further margin expansion beyond 2025 through continued momentum and efficiency gains.

Forward calendar

The Q3 Trading Report will be released on 6 November 2025.

Capital Markets Day planned for early December, date to be confirmed.

About Smith+Nephew

Smith+Nephew is a portfolio medical technology business focused on the repair, regeneration and replacement of soft and hard tissue. We exist to restore people’s bodies and their self-belief by using technology to take the limits off living. We call this purpose ‘Life Unlimited’. Our 17,000 employees deliver this mission every day, making a difference to patients’ lives through the excellence of our product portfolio, and the invention and application of new technologies across our three global business units of Orthopaedics, Sports Medicine & ENT and Advanced Wound Management.

Founded in Hull, UK, in 1856, we now operate in around 100 countries, and generated annual sales of $5.8 billion in 2024. Smith+Nephew is a constituent of the FTSE100 (LSE:SN, NYSE:SNN). The terms ‘Group’ and ‘Smith+Nephew’ are used to refer to Smith & Nephew plc and its consolidated subsidiaries, unless the context requires otherwise.

For more information about Smith+Nephew, please visit www.smith-nephew.com and follow us on X, LinkedIn, Instagram or Facebook.

Forward-looking statements

This document may contain forward-looking statements that may or may not prove accurate. For example, statements regarding expected revenue growth and trading profit margins, market trends and our product pipeline are forward-looking statements. Phrases such as "aim", "plan", "intend", "anticipate", "well-placed", "believe", "estimate", "expect", "target", "consider" and similar expressions are generally intended to identify forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause actual results to differ materially from what is expressed or implied by the statements. For Smith+Nephew, these factors include: conflicts in Europe and the Middle East, economic and financial conditions in the markets we serve, especially those affecting healthcare providers, payers and customers; price levels for established and innovative medical devices; developments in medical technology; regulatory approvals, reimbursement decisions or other government actions; product defects or recalls or other problems with quality management systems or failure to comply with related regulations; litigation relating to patent or other claims; legal and financial compliance risks and related investigative, remedial or enforcement actions; disruption to our supply chain or operations or those of our suppliers; competition for qualified personnel; strategic actions, including acquisitions and disposals, our success in performing due diligence, valuing and integrating acquired businesses; disruption that may result from transactions or other changes we make in our business plans or organisation to adapt to market developments; relationships with healthcare professionals; reliance on information technology and cybersecurity; disruptions due to natural disasters, weather and climate change related events; changes in customer and other stakeholder sustainability expectations; changes in taxation regulations; effects of foreign exchange volatility; and numerous other matters that affect us or our markets, including those of a political, economic, business, competitive or reputational nature. Please refer to the documents that Smith+Nephew has filed with the U.S. Securities and Exchange Commission under the U.S. Securities Exchange Act of 1934, as amended, including Smith+Nephew's most recent annual report on Form 20-F, which is available on the SEC’s website at www. sec.gov, for a discussion of certain of these factors. Any forward-looking statement is based on information available to Smith+Nephew as of the date of the statement. All written or oral forward-looking statements attributable to Smith+Nephew are qualified by this caution. Smith+Nephew does not undertake any obligation to update or revise any forward-looking statement to reflect any change in circumstances or in Smith+Nephew's expectations.

^◊ Trademark of Smith+Nephew. Certain marks registered in US Patent and Trademark Office.