Revenues and profits rise at Smith+Nephew as its workforce shrinks

Hull-based med tech group, Smith+Nephew, has reported revenues of $5,810m/£4,602m (2023: $5,549m/£4,396m), in its results for the full year ended 31 December 2024.

In the same period, the group recorded pre-tax profits of $498m/£394m (2023: $290m/£228m).

The business says it has delivered a near 9% net reduction in its total workforce since the start of its 12-Point Plan – which was first revealed in July 2022. This plan is designed to fundamentally change the way the company operates.

Smith+Nephew says more than 1,000 of these role reductions were made in 2024, with the majority taking place in the final quarter of the year.

Deepak Nath, chief executive officer, said: “Smith+Nephew’s transformation remains on track with the 12-Point Plan increasingly delivering better financial performance. Revenue growth is consistently above historical levels following operational and commercial improvements.

“Changes to our organisational structure are driving increased accountability at the Business Unit level. Working capital discipline and asset utilisation have driven strong cash flow generation and better returns.

“Our innovation continued to deliver, with more than 60% of revenue growth in 2024 coming from products launched in the last five years. We have launched nearly 50 new products over the last three years and have an exciting pipeline for 2025.

“There is much more to be done, but we have made solid progress fixing the foundations and expect a step-up in returns in 2025, including significant margin expansion.”

Smith+Nephew says its productivity is improving, with two years of margin expansion reflecting operating leverage and efficiency savings which have more than offset major headwinds.

For 2025, the business says it is targeting another year of strong revenue growth.