Smith & Nephew plc (SNN): Business Model Canvas [Dec-2025 Updated]

You're trying to get past the quarterly reports and see the engine room of Smith & Nephew plc, and honestly, it's a sophisticated machine built on high-value surgical tech and advanced healing. After years watching this space, I see a model deeply reliant on IP like the OXINIUM hips and the CORI robotics platform, which is why they poured $143 million into R&D in H1 2025, all while generating $487 million in Trading Cash Flow that same period to fuel expansion. This isn't just about selling implants; it's about embedding themselves in the operating room with direct sales and clinical support, aiming for that 5.0% underlying revenue growth for the full year by focusing on products launched recently. If you want the precise breakdown of how their key activities and customer segments translate into that expected 19.0% to 20.0% Trading Profit Margin, check out the full canvas below.

Smith & Nephew plc (SNN) - Canvas Business Model: Key Partnerships

You're looking at the ecosystem that helps Smith & Nephew plc get its products to market and advance its technology, which is crucial given their full-year underlying revenue growth target for 2025 is around 5.0%. These alliances are the backbone for market access and innovation.

Group Purchasing Organizations (GPOs) for hospital procurement

Smith & Nephew's success in the United States, which accounts for over half of its sales, is heavily influenced by relationships with Group Purchasing Organizations (GPOs). These organizations negotiate pricing and contracts for hospital systems, effectively determining which devices get placed on formulary. While specific GPO contract revenue percentages aren't public, the focus on US Hip Implants showing strong growth in Q3 2025, while US Knee Implants were weaker, suggests varying success across different GPO-covered segments. The company is focused on 'Fixing Orthopaedics' to regain momentum, which includes navigating these procurement channels effectively.

Academic and clinical research institutions for trials

Partnerships with academic and clinical research institutions are essential for generating the clinical evidence that supports premium pricing and adoption of new technologies like the CORI Surgical System. For instance, the CORI system's robotic-assisted revision knee application involved work with institutions like Duke University, where the first cases were performed in August 2022. Smith & Nephew continues to emphasize clinical evidence to underpin further growth, as noted in their Q2 2025 results. These collaborations are key to validating the health economic value of their portfolio.

Technology partners for digital surgery and robotics (e.g., CORI)

Smith & Nephew develops its digital surgery ecosystem internally, centered around the CORI Surgical System. This handheld robotic solution is a focal point for their digital OR vision, designed to grow and evolve across joint arthroplasty indications. The company is actively expanding its capabilities, moving from total/partial knee to revision knee, and working on bringing a shoulder replacement application to market for CORI. This internal technology development acts as a partnership with the surgical community itself, as the system is designed to be surgeon-controlled.

Here's a snapshot of the CORI system's scale as of late 2024, which informs the partnership strategy for 2025:

The company is working to improve productivity to support a trading profit margin expansion to between 19.0% and 20.0% for the full year 2025, and technology adoption is a driver for this.

Distributors and agents for market access in Emerging Markets

Market access in Emerging Markets relies on a network of distributors and agents, especially given the headwinds from China's volume-based procurement program. While specific distributor agreements aren't detailed, the performance in these regions is tracked. Emerging Markets delivered underlying revenue growth of 5.4% in Q3 2025 (reported growth 5.9%). Excluding China, the underlying revenue growth in Emerging Markets was 12.2% in H1 2025. This differential performance highlights the importance of the distribution network outside of the VBP-affected areas.

UFC as Preferred Sports Medicine Technology Partner

Smith & Nephew extended its worldwide marketing partnership with the UFC in October 2025, continuing as the organization's Preferred Sports Medicine Technology Partner, a designation they received as the inaugural partner in that category in 2024. This partnership is a platform to highlight their Sports Medicine technology solutions for activity-related injuries. The collaboration includes integrating UFC athletes into marketing efforts; Dustin "The Diamond" Poirier served as the brand ambassador in 2025. A key element is medical education, with the second Smith+Nephew UFC Combat Sports Medicine Course scheduled for February 18-20, 2026.

The scale of this marketing partnership is tied to the UFC's reach and its parent company's financial standing:

• UFC has approximately 318 million social media followers.
• TKO, UFC's parent company, holds a market capitalization of $36.8 billion as of late 2025.
• The partnership activates brand presence around major UFC events, providing a global platform for the Sports Medicine portfolio.

This relationship helps drive awareness for products like the REGENETEN Bioinductive Implant and CARTIHEAL AGILI-C Cartilage Repair Implant.

Smith & Nephew plc (SNN) - Canvas Business Model: Key Activities

You're looking at the core engine of Smith & Nephew plc-the things they absolutely must do well to hit their targets. It's all about execution right now, especially after the big operational cleanup.

Research and Development (R&D) for new product launches

Smith & Nephew plc focuses R&D to ensure a steady stream of innovation, which is critical for market share capture. New products launched in the last five years accounted for a massive three-quarters of their first half growth in 2025. While annual Research and Development Expenses for 2023 were reported at $0.339B, the focus in 2025 is clearly on commercializing that pipeline. They are maintaining a high pace of innovation, with key platforms like CORI\u25e6, EVOS\u25e6, REGENETEN\u25e6, and their Negative Pressure Wound Therapy portfolio all delivering strong double-digit growth in Q1 2025. They are pushing a continued higher cadence of product launches to underpin future revenue growth.

Manufacturing and global supply chain optimization (12-Point Plan)

This is where the heavy lifting has been. The 12-Point Plan is designed to fix structural weaknesses, and you can see the financial results of that operational rigor. The company has set a full-year 2025 trading profit margin target to expand to between 19.0% and 20.0%, building on the 17.7% achieved in the first half of 2025. The plan delivered around 410bps of incremental cost savings across 2023 and 2024. Supply chain optimization is evident in inventory management; by the end of 2024, Day Sales of Inventory (DSI) was down by 20 days year-on-year. This improved further in H1 2025, with DSI reduced by 46 days year-on-year, equating to a $69 million reduction in inventory value on a constant currency basis. Restructuring costs, tied to this efficiency work, dropped significantly to just $8 million in H1 2025, down from $62 million in H1 2024, signaling near completion of the plan's heavy charges. Hip and knee implant availability normalized across the business by 2025, which directly supported growth in robotics and trauma segments.

Here's a quick look at the operational leverage:

Commercial execution and sales force training

The sales force, operating in over 100 countries, is aligned and specialized across the three business units: Orthopaedic Reconstruction and Robotics, Orthopaedic Trauma, Sports Medicine, ENT, and Advanced Wound Management. The Global Commercial Training and Education team ensures a consistent content and curriculum-based approach, coupled with commercial training specialization in key markets. Stronger commercial execution, a result of the 12-Point Plan, helped drive underlying revenue growth of 6.2% for Knee Implants outside the US in Q3 2025, even as US Knee Implants saw a -2.3% decline due to portfolio rationalization actions.

• Sales function roles include: Associate sales representatives, Sales representatives, Territory sales managers, Regional sales managers, Product specialists, and Clinical specialists.
• The company prides itself on giving customers a high standard of service.

Regulatory compliance and clinical evidence generation

Generating clinical evidence is a constant activity to support product claims and secure reimbursement. The company explicitly mentions that a continued higher cadence of product launches and clinical evidence underpins further growth into the second half of 2025. While managing regulatory risk is inherent, the company is also managing external financial pressures, with an expected net impact of $15 to $20 million from tariffs in 2025 factored into their outlook. The extension of the Volume-Based Procurement (VBP) policy in China continued to be a headwind, with an additional impact expected in Arthroscopic Enabling Technologies in the second half of 2025.

Integrating acquired technologies like CartiHeal (Nov 2023)

The acquisition of CartiHeal, completed on January 10, 2024, is a key activity in bolstering the Sports Medicine portfolio. Smith & Nephew plc paid $180 million on completion, with up to a further $150 million contingent on future financial performance, for a total deal value up to $330 million. This technology, Agili-C, is an off-the-shelf, one-step treatment for osteochondral lesions. The clinical data is compelling: the implant demonstrated an 87% reduction in the relative risk of total knee arthroplasty or osteotomy at 4 years compared to microfracture or debridement in a trial. Smith & Nephew plc expects that CartiHeal will break even by 2027 and that the return on invested capital will exceed the weighted cost of capital by the end of the fifth year of the deal. Finance: draft 13-week cash view by Friday.

Smith & Nephew plc (SNN) - Canvas Business Model: Key Resources

You're looking at the core assets that let Smith & Nephew plc actually run the business and compete, so let's break down the hard numbers behind what they own and operate as of late 2025.

Intellectual Property (IP) Portfolio, Including OXINIUM Technology

The IP is definitely a moat here, especially that proprietary bearing material. It's not just a concept; it's proven in the field over decades. This technology underpins a significant part of their high-value reconstruction portfolio.

Here's a quick look at the clinical validation for the OXINIUM Technology:

• Highest survivorship rate (94.1%) over a 20-year period for total hip arthroplasty (THA) per AOANJRR data.
• Clinical heritage spanning over 25 years as of late 2025.
• Demonstrated a 30x reduction in pro-inflammatory markers in vitro compared to cobalt-chrome.
• Over two million procedures surpassed using OXINIUM™ Advanced Bearing System implants (data point from 2020, showing scale).

It's the material science that really matters here. It's a true material transformation, not just a coating.

CORI Surgical System, a Handheld Robotics Platform

The CORI Surgical System is Smith & Nephew plc's answer in the rapidly growing field of robotic-assisted surgery. They held the second-leading position in this global market in 2024, which is a strong starting point for 2025 investment.

The market context for this key resource looks like this:

The platform is image-agnostic for both knee and hip procedures, and the CORI Digital Tensioner is now cleared for use across UKA, TKA, and Revision TKA procedures.

Global Manufacturing and Distribution Network

You can't sell into ~100 countries without the physical infrastructure to support it. Smith & Nephew plc serves markets valued at approximately US $50 billion annually. This network is supported by strategic, high-investment manufacturing sites.

Consider the scale of their foundation:

• Markets served valued at approximately US $50 billion per annum.
• Operates in approximately 100 countries.
• Opened a 250,000 square-foot high-technology manufacturing facility in Penang, Malaysia, representing over USD100 million in investment.

They are definitely building out the foundation for sustainable supply.

Specialized Sales Force and Clinical Support Teams

These teams are the direct interface for the value proposition, segmented to match their three global business units: Orthopaedics, Sports Medicine & ENT, and Advanced Wound Management. The structure is in place to serve the specific requirements of healthcare systems in each market.

The business is organized around these specialized focus areas:

• Orthopaedics: Driving procedural innovation with robotics and implants.
• Sports Medicine & ENT: Elevating the standard of care with procedural solutions.
• Advanced Wound Management: Second largest business globally in terms of revenue in its category.

The expertise of these teams directly translates to adoption rates.

H1 2025 Trading Cash Flow for Investment

The operational engine is clearly firing, providing the capital for reinvestment and shareholder returns. The H1 2025 results show strong conversion of profit into usable cash.

The key financial metric supporting future investment is the H1 2025 Trading Cash Flow of $487 million.

Smith & Nephew plc (SNN) - Canvas Business Model: Value Propositions

You're looking at the core promises Smith & Nephew plc makes to its customers-the tangible benefits their technology delivers in the operating room and for patient recovery. These aren't just features; they are measurable outcomes driving their business transformation.

Minimally invasive surgery solutions (Sports Medicine)

Smith & Nephew plc supports minimally invasive approaches, which generally mean faster recovery and less trauma for the patient. This is evident in their Sports Medicine unit, which saw underlying revenue growth of $\mathbf{5.1\%}$ in the third quarter of 2025.

The value proposition here is enabling precise, less invasive procedures, supported by enabling technologies:

• The CORI Surgical System expanded its offering in Q2 2025 with FDA-clearance for CORIOGRAPH Pre-Op Planning and Modelling Services for total shoulder replacement.
• This technology now covers all major joint replacement procedures: Knee, Hip, and Shoulder.

High-survivorship joint implants (e.g., OXINIUM hips)

For joint replacement, the value proposition centers on long-term implant durability, directly addressing the historical failure mode of bearing wear. The data coming out in early 2025 strongly supports this claim for their proprietary material.

Here's what the registry data shows for the OXINIUM (Oxidized Zirconium) on highly cross-linked polyethylene (XLPE) bearing combination:

Also, the LEGION Hinged Knee (HK) System now incorporates this OXINIUM technology, delivering the durability of metals with the wear resistance of ceramics.

Advanced wound healing via PICO single-use Negative Pressure Wound Therapy (NPWT)

In Advanced Wound Management, the value is delivering superior healing outcomes and cost savings, particularly with their single-use NPWT device, PICO. This product line is a significant growth engine.

The evidence base is growing, which is a key value driver:

• A comparative study in H1 2025 involving over $\mathbf{10,000}$ Caesarean section patients showed PICO led to fewer surgical site infections and complications versus an alternative sNPWT system.
• Advanced Wound Devices underlying revenue growth was $\mathbf{20.6\%}$ in 2024.
• The Negative Pressure Wound Therapy portfolio delivered strong double-digit growth in the first quarter of 2025.

Robotics-assisted enabling technologies for surgical precision

Smith & Nephew plc is enabling greater surgical precision through its robotic platform, which is now fully integrated across major joints. This is a clear value add for surgeons seeking reproducible results.

The value is in the comprehensive, integrated system offering:

• The CORI platform now supports image-free and image-based planning for Knee, Hip, and Shoulder procedures following the Q2 2025 clearance for shoulder planning services.
• New products like LEGION medial stabilised inserts, which are part of the knee system, are now used in more than $\mathbf{30\%}$ of US knee replacements, showing adoption of their improved knee solutions.

Portfolio of products driving over half of growth from products launched in the last five years

This metric speaks directly to the company's ability to innovate and commercialize effectively, which is a core value proposition for the market-a pipeline that actually delivers revenue.

Here is the recent contribution from innovation:

The company expects this higher cadence of product launches and clinical evidence to underpin further growth, with a full-year 2025 underlying revenue growth guidance maintained at around $\mathbf{5.0\%}$.

Smith & Nephew plc (SNN) - Canvas Business Model: Customer Relationships

You're looking at how Smith & Nephew plc keeps its high-value customers-surgeons and major health systems-locked in. It's a mix of high-touch personal service and scalable digital tools, which is smart for complex medical devices.

Dedicated clinical support and training for surgeons (Smith+Nephew Academy)

Smith & Nephew plc centers its clinical relationship strategy around the Smith+Nephew Academy, which is designed to provide comprehensive, accessible learning for healthcare professionals globally. This isn't just about selling a product; it's about ensuring proficiency with it. The Academy operates physical centers in locations like the US, Singapore, and Europe, complemented by the S+N Academy Online global platform.

The online platform supports personalized learning journeys across all their franchises, including Orthopaedics, Sports Medicine & ENT, and Advanced Wound Management. Some content is accredited or endorsed by bodies such as The Royal College of Surgeons of England (RCSEng), allowing professionals to earn CPD points for Continuing Medical Education (CME).

• S+N Academy Online offers e-learning modules, expert lectures, and virtual classrooms.
• Training covers faculty-led techniques, clinical data, and evidence literature.
• The Academy hosts specific events, like the INSPIRE Shoulder Academy, with courses scheduled throughout 2025.

High-touch, direct sales model for complex Orthopaedics and Robotics

For their most advanced and capital-intensive areas, like complex Orthopaedics and Robotics (where systems like CORI◊ and EVOS◊ are key), Smith & Nephew plc relies on a high-touch, direct sales force. This model is necessary because adoption requires deep clinical integration and ongoing technical support. While the exact size of this dedicated sales force isn't public, the focus on these complex areas is clear from the revenue performance; for instance, Other Reconstruction, which includes robotics consumables, saw underlying revenue growth of 46.6% in Q1 2025. This kind of growth requires direct, consultative selling.

Long-term contracts with major hospital systems and GPOs

Securing long-term commitments with large purchasing groups and government entities is crucial for revenue stability. Smith & Nephew plc successfully competes for these large-scale agreements by demonstrating clinical and operational value. A concrete example from 2025 is the contract awarded to supply the RENASYS◊ TOUCH Negative Pressure Wound Therapy system to the United States Department of Defense. This deal is structured for up to 10-years and is worth up to $75 million. This shows their ability to secure multi-year revenue streams based on product efficacy and operational fitness.

Here's a quick look at some quantifiable relationship outcomes and contract values:

Digital engagement and remote monitoring via platforms like LEAF

Digital engagement is heavily focused on improving patient outcomes through remote monitoring, particularly in the Advanced Wound Management segment with the LEAF Patient Monitoring System. This technology directly addresses a critical clinical gap: patient turning adherence for Hospital-Acquired Pressure Injury (HAPI) prevention. Traditional adherence rates hover around 48%, but institutions using LEAF have shown turn adherence improvements up to 98%. The system provides digital turn reminders and confirms turn quality, which helps nursing staff manage heavy workloads. The overall financial commitment to this area is significant, as Smith & Nephew plc expects its Advanced Wound Management segment to deliver underlying revenue growth of 6.0% in Q3 2025. If onboarding takes 14+ days, churn risk rises, but the digital nature of LEAF helps streamline adoption.

Smith & Nephew plc (SNN) - Canvas Business Model: Channels

You're looking at how Smith+Nephew plc gets its products-from hip implants to advanced wound dressings-into the hands of surgeons and clinicians. It's a multi-pronged approach, blending direct engagement with a network of partners.

Direct sales force to hospitals and Ambulatory Surgery Centers (ASCs)

The core of the go-to-market strategy involves a direct sales force. Smith+Nephew plc supports its customers with sales representatives who need deep technical knowledge about the products and the surgical techniques involved. As of late 2025, the company has a total workforce of approximately 17,349 employees globally, many of whom are dedicated to these direct customer interactions across their three business units. This direct channel is critical in the US, which generates over half of the company's total revenue. Still, this channel faces specific financial pressures; for instance, an expected Volume-Based Procurement (VBP) process on certain Arthroscopic Enabling Technologies was projected to create around a $25 million revenue headwind in 2025 due to price impact and channel adjustments. That's real money moving through the direct sales pipeline.

Specialized distributors in international and Emerging Markets

For markets outside the core US base, specialized distributors are key to navigating local regulations and logistics. While the US accounts for over 50% of revenue, other developed markets contribute just over 30%, and emerging markets make up the remainder. Growth in Emerging Markets was reported at an underlying rate of 5.4% for the third quarter of 2025, showing the importance of this distribution network, even while navigating headwinds, particularly in China. The company's Q3 2025 revenue was $1,501 million, demonstrating the scale being managed through these varied channels.

Smith+Nephew Academy for professional medical education

Getting the product to the operating room is one thing; ensuring it's used correctly is another. The Smith+Nephew Academy serves as a primary channel for knowledge transfer. This is where the company builds surgeon loyalty and drives adoption of new technologies. You can see this activity reflected in their education calendar, which lists events like the Advanced Surgical Approaches for Internal Fixation (Advanced SAIF) course scheduled for December 5-6, 2025, in the United States. Furthermore, Smith+Nephew is listed as a corporate partner supporting programs for the American Academy of Orthopaedic Surgeons (AAOS), showing alignment with major professional bodies.

E-commerce and digital platforms for product information and ordering

While the surgical device world is heavily relationship-driven, digital platforms are essential for information access and internal efficiency. Smith+Nephew plc has transformed its internal procurement processes, for example, by using SAP Ariba to gain global visibility and compliance, which indirectly affects how materials flow to the point of care. The company is focused on driving growth through technology, as seen in the double-digit growth reported for platforms like CORI and EVOS, which are supported by digital integration. However, specific revenue figures attributed directly to customer-facing e-commerce ordering platforms aren't broken out in the latest public reports.

Here's a quick look at some key financial and operational metrics relevant to channel performance through the first three quarters of 2025:

The company's channel strategy is clearly segmented by geography and product complexity, which you can see reflected in the performance across regions:

• Established Markets underlying revenue growth was 4.9% in Q3 2025.
• US underlying and reported revenue growth was 5.5% in Q3 2025.
• Sports Medicine & ENT saw underlying revenue growth of 5.1% in Q3 2025.
• Advanced Wound Management underlying revenue growth was 6.0% in Q3 2025.

Finance: draft 13-week cash view by Friday.

Smith & Nephew plc (SNN) - Canvas Business Model: Customer Segments

You're looking at the core groups Smith & Nephew plc serves, which directly map to their three main operating segments: Orthopaedics, Sports Medicine & ENT, and Advanced Wound Management. Honestly, understanding who buys the product is half the battle in med-tech.

Orthopaedic surgeons and specialists (Hip, Knee, Trauma)

These specialists are the direct users and champions for the Hip, Knee, and Trauma product lines. The Orthopaedics business unit is a massive part of the picture, bringing in roughly 41% of the company's total revenue. For instance, in the second quarter of 2025, US Hip Implants saw underlying revenue growth of 3.4%, while US Knee Implants grew by 2.9%. Even with some softness in US Knees, the overall Orthopaedics unit delivered underlying revenue growth of 5.5% in Q2 2025. Surgeons are definitely focused on the performance of robotics and reconstruction, which saw a 4% improvement in the US in Q2 2025.

Hospitals and large healthcare systems globally

These institutions are the primary purchasers, managing the budgets and inventory. Smith & Nephew plc operates in more than 100 countries, meaning the customer base is incredibly diverse geographically. Established Markets drove underlying revenue growth of 8.2% in Q2 2025, with the US specifically showing 8.7% underlying growth. These systems are dealing with stretched healthcare budgets, which makes the operational efficiencies Smith & Nephew plc touts-like the $50 million in operating savings delivered in the first half of 2025-a key selling point.

Purchasing professionals and healthcare insurers

These groups focus on value, reimbursement, and total cost of care. A critical piece of data here is that no single customer comprises more than 10% of the Group's external sales. This suggests a broad, decentralized purchasing environment, though large group purchasing organizations (GPOs) and national insurers definitely hold sway over formulary inclusion. The company's focus on operational improvements, which boosted trading margins by 100 basis points in H1 2025, is directly aimed at appealing to cost-conscious buyers.

Sports medicine physicians and ENT specialists

This segment, grouped with ENT, accounts for about 30% of the total revenue. In Q3 2025, the Sports Medicine & ENT unit delivered underlying revenue growth of 5.1%. Sports medicine physicians are key users for joint repair and enabling technologies, which saw strong growth outside of China. For ENT, the ARIS COBLATION turbinates business showed good growth, even as the US tonsils and adenoids market saw some softness.

Patients requiring advanced wound care and devices

These patients often suffer from chronic wounds, like diabetic ulcers or pressure ulcers, driving the demand for Advanced Wound Management. This segment represented about 29% of revenue. The Advanced Wound Management business saw underlying revenue growth of 6.0% in Q3 2025, rebounding strongly in Q2 2025 with 10.2% growth. Smith & Nephew plc holds the second largest business globally in terms of wound care revenue, competing in a market segment valued at $12.5 billion in 2024. The focus here is on evidence-based solutions like ALLEVYN and AQUACEL dressings, and NPWT systems.

Here's a quick math look at how the revenue streams map to these customer groups based on the latest segment reporting:

The company's strategy involves driving growth through innovation across these groups, with the goal of achieving full-year underlying revenue growth around 5.0% for 2025.

Smith & Nephew plc (SNN) - Canvas Business Model: Cost Structure

You're looking at the major drains on the Smith & Nephew plc P&L, the core of what it costs to keep this global medical technology machine running as of late 2025. The cost structure is heavily weighted toward commercial activity and the complexity of producing high-spec medical devices.

The global sales force is a significant fixed cost component. High Selling, General, and Administrative (SG&A) expenses are necessary to support the worldwide footprint, covering everything from sales commissions to marketing for their Orthopaedics, Sports Medicine & ENT, and Advanced Wound Management divisions. This structure supports the revenue leverage seen in the first half of 2025, where the trading profit margin expanded to 17.7%.

Cost of Goods Sold (COGS) reflects the complexity of manufacturing. For the first half of 2025, Smith & Nephew plc reported a strong gross profit margin of 70.6% on revenues of $2,961 million. This margin is key, but it sits atop the COGS associated with complex, high-quality, and often custom-manufactured components for implants and advanced wound care products. Inventory management, a focus area under the 12-Point Plan, directly impacts this cost base.

Research and Development (R&D) investment remains a non-negotiable cost to fuel future revenue streams. For the first half of 2025, the investment in R&D was $143 million.

Operational efficiency costs are winding down but still present from the ongoing 12-Point Plan restructuring. The costs associated with this multi-year transformation are significantly lower now that the program is nearing completion. Restructuring costs for the first half of 2025 were just $8 million, a sharp reduction from $62 million in the first half of 2024. The full-year 2025 estimate for restructuring costs is approximately $45 million.

External market factors are also hitting the cost base. Smith & Nephew plc expects the net tariff headwind for the full year 2025 to be in the range of $15 million to $20 million, based on announced measures and mitigations.

Here is a quick look at some of the key cost-related financial metrics from the first half of 2025 and the full-year outlook:

The company is actively managing these costs, as evidenced by the significant drop in restructuring charges and the raising of free cash flow guidance to around $750 million for the full year 2025, up from the previous guidance of more than $600 million. This improved cash generation is partly due to the operational efficiency gains from the 12-Point Plan and strong working capital discipline, which helps offset these inherent structural costs.

You can see the impact of operational leverage in the comparison of H1 2025 versus H1 2024:

• Trading profit grew 11.2% to $523 million in H1 2025.
• Restructuring costs were down $54 million year-on-year.
• Day Sales of Inventory (DSI) was reduced by 46 days year-on-year.
• The net debt to adjusted EBITDA ratio stood at 1.8x as of June 28, 2025.

Finance: draft 13-week cash view by Friday.

Smith & Nephew plc (SNN) - Canvas Business Model: Revenue Streams

You're looking at how Smith & Nephew plc brings in its money, which is all about selling high-value medical devices and consumables across three main areas. Honestly, the revenue streams are pretty straightforward: implants, sports/ENT gear, and advanced wound care.

The company is definitely on track with its full-year expectations as of late 2025. Smith & Nephew plc continues to expect full-year underlying revenue growth to be around 5.0%. Furthermore, they are targeting a significant step-up in profitability, with the full-year Trading Profit Margin expected to land between 19.0% and 20.0%. That's up from the 18.1% margin seen in 2024.

Here's a look at how the key revenue drivers performed through the third quarter of 2025, which gives you the clearest picture of the current momentum:

Drilling down into those segments, you see where the action is. Sales of Orthopaedic implants, covering Knee, Hip, and Trauma, saw underlying revenue growth of 4.1% in the third quarter. To be fair, the US Hip Implants business is carrying the load here, helping to offset softer performance in Knee Implants.

For Sales of Sports Medicine and ENT products and consumables, the underlying growth hit 5.1% in Q3. This segment is seeing better momentum as the impact from China's VBP pressures starts to lessen, which is a good sign for future quarters.

The Advanced Wound Management product sales, which includes Care, Bioactives, and Devices, posted a solid 6.0% underlying revenue growth in Q3. You should note that Advanced Wound Bioactives delivered double-digit gains, and looking back at the first half, Advanced Wound Devices revenue specifically grew by 12.7%.

It's worth noting the trajectory; the first half of 2025 saw an underlying revenue growth of 5.0%, and the Trading Profit Margin for that same period was 17.7%. So, the second half is expected to deliver the margin expansion needed to hit that full-year target range of 19.0% to 20.0%.

You can see the revenue streams are diversifying their growth:

• Orthopaedics growth was 4.1% in Q3 2025.
• Sports Medicine & ENT growth was 5.1% in Q3 2025.
• Advanced Wound Management growth was 6.0% in Q3 2025.

Finance: draft the Q4 2025 revenue forecast based on the Q3 run rate by next Tuesday.