Smith & Nephew PLC 6-K, filed Aug 5, 2025

Smith & Nephew PLC (SNN)

6-K 2025-08-05 For: 2025-08-05

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Added on July 04, 2026

About this 6-K

Smith & Nephew PLC filed this 6-K on August 5, 2025.

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	28 June	29 June	Reported	Underlying
	2025	2024	growth	growth
	$m	$m	%	%
Second Quarter Results1,2
Revenue	1,553	1,441	7.8	6.7

Half Year Results1,2
Revenue	2,961	2,827	4.7	5.0
Operating profit	429	328	30.6
Operating profit margin (%)	14.5	11.6
EPS (cents)	33.5	24.5	36.6
Cash generated from operations	568	368	54.3

Trading profit	523	471	11.2
Trading profit margin (%)	17.7	16.7
EPSA (cents)	42.9	37.6	14.1
Free cash flow	244	39	528.3


Investors
Cora McCallum	+44 (0) 1923 477433
Smith+Nephew

Media
Charles Reynolds	+44 (0) 1923 477314
Smith+Nephew

Susan Gilchrist / Ayesha Bharmal	+44 (0) 20 7404 5959
Brunswick

	28 June	29 June	Reported	Underlying	Acquisitions	Currency
	2025	2024(i)	growth	growth(ii)	/disposals	impact
Consolidated revenue by business unit by product	$m	$m	%	%	%	%
Orthopaedics	615	581	5.8	5.0	-	0.8
Knee Implants	257	247	3.7	2.9	-	0.8
Hip Implants	162	156	4.2	3.4	-	0.8
Other Reconstruction(iii)	35	25	42.4	39.8	-	2.6
Trauma & Extremities	161	153	5.0	4.4	-	0.6

Sports Medicine & ENT	479	448	6.8	5.7	-	1.1
Sports Medicine Joint Repair	262	239	9.6	8.4	-	1.2
Arthroscopic Enabling Technologies	161	155	3.5	2.3	-	1.2
ENT (Ear, Nose and Throat)	56	54	4.1	3.6	-	0.5

Advanced Wound Management	459	412	11.4	10.2	-	1.2
Advanced Wound Care	192	183	4.6	2.6	-	2.0
Advanced Wound Bioactives	165	139	18.5	18.6	-	(0.1)
Advanced Wound Devices	102	90	14.4	12.7	-	1.7

Total	1,553	1,441	7.8	6.7	-	1.1

Consolidated revenue by geography
US	827	760	8.7	8.7	-	-
Other Established Markets(iv)	470	421	11.6	7.4	-	4.2
Total Established Markets	1,297	1,181	9.7	8.2	-	1.5
Emerging Markets	256	260	(1.2)	(0.2)	-	(1.0)
Total	1,553	1,441	7.8	6.7	-	1.1

	Half year	Half year	Reported
	2025	2024	growth
	$m	$m	%
Revenue	2,961	2,827	4.7
Operating profit	429	328	30.6
Acquisition and disposal related items	9	-
Restructuring and rationalisation costs	8	62
Amortisation and impairment of acquisition intangibles	83	87
Legal and other	(6)	(6)
Trading profit(i)	523	471	11.2
	¢	¢
Earnings per share ('EPS')	33.5	24.5
Acquisition and disposal related items	1.8	0.2
Restructuring and rationalisation costs	0.6	5.8
Amortisation and impairment of acquisition intangibles	7.3	7.8
Legal and other	(0.3)	(0.7)
Adjusted Earnings per share ('EPSA')(i)	42.9	37.6	14.1


	28 June	29 June	Reported	Underlying	Acquisitions	Currency
	2025	2024(i)	growth	growth(ii)	/disposals	impact
Consolidated revenue by business unit by product	$m	$m	%	%	%	%
Orthopaedics	1,193	1,149	3.9	4.1	-	(0.2)
Knee Implants	501	494	1.5	1.8	-	(0.3)
Hip Implants	313	311	0.6	1.1	-	(0.5)
Other Reconstruction(iii)	64	45	43.3	42.8	-	0.5
Trauma & Extremities	315	299	5.2	5.3	-	(0.1)

Sports Medicine & ENT	923	888	3.9	4.1	-	(0.2)
Sports Medicine Joint Repair	509	483	5.4	5.6	-	(0.2)
Arthroscopic Enabling Technologies	307	304	1.0	1.1	-	(0.1)
ENT (Ear, Nose and Throat)	107	101	5.3	5.6	-	(0.3)

Advanced Wound Management	845	790	6.9	7.1	-	(0.2)
Advanced Wound Care	366	357	2.2	2.5	-	(0.3)
Advanced Wound Bioactives	285	262	8.8	8.9	-	(0.1)
Advanced Wound Devices	194	171	13.9	14.1	-	(0.2)

Total	2,961	2,827	4.7	5.0	-	(0.3)

Consolidated revenue by geography
US	1,586	1,493	6.2	6.2	-	-
Other Established Markets(iv)	897	841	6.7	6.2	-	0.5
Total Established Markets	2,483	2,334	6.4	6.2	-	0.2
Emerging Markets	478	493	(3.1)	(0.9)	-	(2.2)
Total	2,961	2,827	4.7	5.0	-	(0.3)


		Half year	Half year
		2025	2024
	Notes	$m	$m
Revenue	2	2,961	2,827
Cost of goods sold		(870)	(853)
Gross profit		2,091	1,974
Selling, general and administrative expenses		(1,519)	(1,509)
Research and development expenses		(143)	(137)
Operating profit	2	429	328
Interest income		15	9
Interest expense		(69)	(70)
Other finance costs		(12)	(12)
Share of results of associates		(1)	(2)
Profit before taxation		362	253
Taxation	3	(69)	(39)
Attributable profit for the periodA		293	214
Earnings per ordinary shareA
Basic		33.5	24.5
Diluted		33.3	24.5


		28 June	31 December	29 June
		2025	2024	2024
	Notes	$m	$m	$m
ASSETS
Non-current assets
Property, plant and equipment		1,436	1,422	1,441
Goodwill		3,111	3,026	3,104
Intangible assets		962	1,032	1,112
Investments		29	9	9
Investments in associates		7	7	15
Other non-current assets		49	24	17
Retirement benefit assets		70	63	67
Deferred tax assets		401	350	319
		6,065	5,933	6,084
Current assets
Inventories		2,467	2,387	2,491
Trade and other receivables		1,435	1,381	1,355
Current tax receivable		49	34	44
Cash and cash equivalents	6	676	619	568
		4,627	4,421	4,458
TOTAL ASSETS		10,692	10,354	10,542

EQUITY AND LIABILITIES
Equity attributable to owners of the Company
Share capital		175	175	175
Share premium		615	615	615
Capital redemption reserve		20	20	20
Treasury shares		(48)	(66)	(82)
Other reserves		(347)	(497)	(457)
Retained earnings		5,121	5,018	4,934
Total equity		5,536	5,265	5,205

Non-current liabilities
Long-term borrowings and lease liabilities	6	3,297	3,258	3,275
Retirement benefit obligations		86	79	82
Other payables		96	95	96
Provisions		94	95	71
Deferred tax liabilities		42	31	36
		3,615	3,558	3,560

Current liabilities
Bank overdrafts, borrowings, loans and lease liabilities	6	157	63	380
Trade and other payables		1,097	1,128	1,024
Provisions		58	108	152
Current tax payable		229	232	221
		1,541	1,531	1,777
Total liabilities		5,156	5,089	5,337
TOTAL EQUITY AND LIABILITIES		10,692	10,354	10,542


			Capital
	Share	Share	redemption	Treasury	Other	Retained	Total
	capital	premium	reserve	shares	reservesC	earningsD	equity
	$m	$m	$m	$m	$m	$m	$m
At 1 January 2025	175	615	20	(66)	(497)	5,018	5,265
Attributable profit for the periodA	-	-	-	-	-	293	293
Other comprehensive incomeA	-	-	-	-	150	2	152
Equity dividends declared and paid	-	-	-	-	-	(202)	(202)
Share-based payments recognised	-	-	-	-	-	21	21
Taxation on share-based payments	-	-	-	-	-	6	6
Cost of shares transferred to beneficiaries	-	-	-	18	-	(17)	1
At 28 June 2025	175	615	20	(48)	(347)	5,121	5,536


	Half year 2025			Half year 2024
	Established MarketsE	Emerging Markets	Total	Established MarketsE	Emerging Markets	Total
	$m	$m	$m	$m	$m	$m
Orthopaedics, Sports Medicine & ENT	1,752	364	2,116	1,647	390	2,037
Advanced Wound Management	731	114	845	687	103	790
Total	2,483	478	2,961	2,334	493	2,827


		CartiHeal (2009) Ltd
		$m
Intangible assets - product-related and trade name		84
Inventory		1
Cash		6
Other liabilities		(2)
Trade and other payables		(1)
Net deferred tax liability		(3)
Net assets		85
Goodwill		146
Consideration		231


	Carrying amount			Fair value
	28 June	31 December	29 June	28 June	31 December	29 June
	2025	2024	2024	2025	2024	2024	Fair value
	$m	$m	$m	$m	$m	$m	level
Financial assets measured at fair value
Forward foreign exchange contacts	2	46	34	2	46	34	Level 2
Investments	29	9	9	29	9	9	Level 3
Contingent consideration receivable	-	-	18	-	-	18	Level 3
Interest rate swaps	31	10	7	31	10	7	Level 2
Currency swaps	-	1	1	-	1	1	Level 2
	62	66	69	62	66	69
Financial assets not measured at fair value
Trade and other receivables	1,296	1,190	1,214
Cash and cash equivalents	676	619	568
	1,972	1,809	1,782
Total financial assets	2,034	1,875	1,851

Financial liabilities measured at fair value
Acquisition consideration - contingent	(89)	(84)	(78)	(89)	(84)	(78)	Level 3
Forward foreign exchange contracts	(36)	(16)	(16)	(36)	(16)	(16)	Level 2
Interest rate swaps	-	(16)	(7)	-	(16)	(7)	Level 2
Currency swaps	-	(2)	-	-	(2)	-	Level 2
	(125)	(118)	(101)	(125)	(118)	(101)
Financial liabilities not measured at fair value
Acquisition consideration - deferred	(9)	(21)	(20)
Bank overdrafts	(3)	(2)	(23)
Bank loans	(14)	-	-
Corporate bond not in a hedge relationship	(1,493)	(1,492)	(1,491)
Corporate bond in a hedge relationship	(1,110)	(1,006)	(1,027)
Private placement debt not in a hedge relationship	(625)	(625)	(930)
Trade and other payables	(1,060)	(1,084)	(999)
	(4,314)	(4,230)	(4,490)
Total financial liabilities	(4,439)	(4,348)	(4,591)


	Half year	Full year	Half year
	2025	2024	2024
Average rates
Sterling	1.30	1.28	1.26
Euro	1.09	1.08	1.08
Swiss Franc	1.16	1.14	1.12
Japanese Yen	0.0067	0.0066	0.0066
Period end rates
Sterling	1.37	1.25	1.27
Euro	1.17	1.04	1.07
Swiss Franc	1.26	1.10	1.11
Japanese Yen	0.0069	0.0064	0.0062


By order of the Board:

Deepak Nath	Chief Executive Officer	4 August 2025
John Rogers	Chief Financial Officer	4 August 2025


Performance measures
Non-IFRS measure	Purpose	Definition	Closest equivalent IFRS measure	Reconciled on
Underlying revenue growth	Underlying revenue growth is used to compare revenue in a given period to the previous period on a like-for-like basis. This measure is used by both management and the investor community.	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'. 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.	Revenue growth	33
Average daily sales	Average daily sales is used to assess underlying revenue growth by removing the effect of different trading days between periods. This is a key metric used by management to assess the performance of the Group.	Average daily sales is calculated by dividing revenue at a constant exchange rate by the number of trading days in a given period. Trading days refer to the days on which the Group generates its revenue.	Revenue	n/a
Trading profit	Trading profit is used in conjunction with operating profit to assess the performance and profitability of the Group. It is a key internal and external metric used by the investor community to assess our performance. It is our segment performance measure in accordance with IFRS 8 Operating Segments.	Trading profit is operating profit excluding the impact of acquisition and disposal related items arising in connection with business combinations, including amortisation of acquisition intangible assets, impairments and integration costs; restructuring events; and gains and losses resulting from legal disputes and uninsured losses. In addition to these items, gains and losses that materially impact the Group's profitability on a short-term or one-off basis are excluded.	Operating profit	33
Trading profit margin	This measure is used to assess the performance and profitability of the Group. It is a key external metric used by the investor community to assess our performance.	Trading profit margin is trading profit divided by revenue.	Operating profit margin	33
Performance measures (continued)
Non-IFRS measure	Purpose	Definition	Closest equivalent IFRS measure	Reconciled on
Trading profit before tax	Trading profit before tax is used in conjunction with profit before tax to assess performance and profitability of the Group. This measure is intended to enable the users to assess the performance of the Group by excluding items that impact the short-term profitability of the Group.	Trading profit before tax is profit before tax excluding impact of acquisition and disposal related items arising in connection with business combinations, including amortisation of acquisition intangible assets, impairments and integration costs; restructuring events; and gains and losses resulting from legal disputes and uninsured losses. In addition to these items, gains and losses that materially impact the Group's profitability on a short-term or one-off basis are excluded.	Profit before tax	33
Trading taxation	Trading taxation is used in conjunction with taxation to assess taxation that corresponds to trading profit before tax. This metric is used by both management and the investor community.	Trading taxation is taxation excluding the impact of acquisition and disposal related items arising in connection with business combinations, including amortisation of acquisition intangible assets, impairments and integration costs; restructuring events; and gains and losses resulting from legal disputes and uninsured losses. In addition to these items, gains and losses that materially impact the Group's profitability on a short-term or one-off basis are excluded.	Taxation	33
Trading attributable profit	This metric is used in the calculation of adjusted basic earnings per share.	Trading attributable profit is attributable profit excluding the impact of acquisition and disposal related items arising in connection with business combinations, including amortisation of acquisition intangible assets, impairments and integration costs; restructuring events; and gains and losses resulting from legal disputes and uninsured losses. In addition to these items, gains and losses that materially impact the Group's profitability on a short-term or one-off basis are excluded.	Attributable profit	33
Adjusted earnings per share ('EPSA')	EPSA is a trend measure. The Group presents this measure to assist investors in their understanding of trends.	Adjusted earnings per share is trading attributable profit divided by the weighted average number of shares outstanding. This is the same denominator used when calculating basic earnings per share.	Basic earnings per share	33
Trading cash flow	Trading cash flow is used in conjunction with cash generated from operations to assess the conversion of trading profit into cash. It is key external metric used by the investor community and is a key performance measure for management.	Trading cash flow is cash generated from operations excluding the impact of acquisition and disposal related items arising in connection with business combinations, including integration costs; restructuring events; and gains and losses resulting from legal disputes and uninsured losses. In addition to these items, gains and losses that materially impact the Group's cash flows on a short-term or one-off basis are excluded. Trading cash flow includes payment of capital element of lease liabilities, proceeds from disposal of property, plant and equipment and capital expenditure as presented in the Group cash flow statement.	Cash generated from operations	33
Trading cash conversion	This measure is used to assess the conversion of trading profit into cash. It is a key external metric used by the investor community and is a key performance measure for management.	Trading cash conversion is trading cash flow divided by trading profit.	Cash generated from operations	33


Other measures
Non-IFRS measure	Purpose	Definition	Closest equivalent IFRS measure	Reconciled on
Free cash flow	Free cash flow is a measure of the cash generated for the Group to use after capital expenditure according to its Capital Allocation Framework. This metric is used by both management and investor community.	Free cash flow is cash generated from operations less capital expenditure, proceeds from disposal of property, plant and equipment, payment of lease liabilities and cash flows from interest and income taxes.	Cash generated from operations	35
Adjusted EBITDA	Adjusted EBITDA is used in the calculation of adjusted leverage ratio.	Adjusted EBITDA is attributable profit excluding taxation, share of results of associates, other finance costs, interest expense, interest income, acquisition and disposal related items, restructuring and rationalisation costs, amortisation and impairment of acquisition intangibles, legal and other costs, depreciation and impairment of property, plant and equipment and amortisation and impairment of other intangible assets.	Attributable profit	35
Adjusted leverage ratio	Adjusted leverage ratio is used in the calculation relating to debt covenants.	We calculate adjusted leverage ratio by dividing net debt by adjusted EBITDA. Net debt is defined as total borrowings less cash and cash equivalents in the statement of financial position. Total borrowings include bank overdrafts, borrowings, loans and lease liabilities and long-term borrowings and lease liabilities.	Leverage ratio(using IFRS measures)	35
Adjusted return on invested capital ('Adjusted ROIC')	Adjusted ROIC is a metric used by investor community and is a measure of the return generated on capital invested by the Group. It provides a metric for long-term value creation and encourages compounding reinvestment within the business and discipline around acquisitions with low returns and long payback. Adjusted ROIC is a key performance measure under the Performance Share Program.	Adjusted ROIC is defined as operating profit (before amortisation and impairment of acquisition intangibles) less adjusted taxes/((opening net operating assets + closing net operating assets)/2).	Return on invested capital ('ROIC') (using IFRS measures)	n/a


		Smith & Nephew plc
		(Registrant)


Date: August 05, 2025	By:	/s/ Helen Barraclough
		Helen Barraclough
		Company Secretary


					Reconciling Items
	Half year	Half year	Reported	Underlying	Acquisitions	Currency
	2025	2024	growth	growth	& disposals	impact
	$m	$m	%	%	%	%
Segment revenue
Orthopaedics	1,193	1,149	3.9	4.1	-	(0.2)
Sports Medicine & ENT	923	888	3.9	4.1	-	(0.2)
Advanced Wound Management	845	790	6.9	7.1	-	(0.2)
Revenue from external customers	2,961	2,827	4.7	5.0	-	(0.3)


					Cash
		Profit			generated
	Operating	before		Attributable	from	Earnings
	profit1	tax2	Taxation3	profit4	operations5	per share6
	$m	$m	$m	$m	$m	¢
Half year 2025 Reported	429	362	(69)	293	568	33.5
Acquisition and disposal related items8	9	20	(4)	16	7	1.8
Restructuring and rationalisation costs	8	8	(2)	6	52	0.6
Amortisation and impairment of acquisition intangibles8	83	83	(19)	64	-	7.3
Legal and other7,8	(6)	(4)	1	(3)	12	(0.3)
Lease liability payments	-	-	-	-	(25)	-
Capital expenditure	-	-	-	-	(139)	-
Proceeds from disposal of property, plant and equipment	-	-	-	-	12	-
Half year 2025 Non-IFRS	523	469	(93)	376	487	42.9


	Half year 2025	Full year 2024
	$m	$m
Bank overdrafts, borrowings, loans and lease liabilities	157	63
Long-term borrowings and lease liabilities	3,297	3,258
Total borrowings	3,454	3,321

Attributable profit for the period1	491	412
Leverage ratio1	7.0	8.1