Smith & Nephew makes good progress during 2022 as strategy aims to drive growth

The global medical technology business Smith & Nephew said it made good strategic progress during 2022 as it implemented policies to drive growth and improve productivity.
By Greg Wright
Published 21st Feb 2023, 08:58 BST

Deepak Nath, the company’s chief executive, said the company ended the year in a much stronger position than it started. In 2022, Smith & Nephew achieved a trading profit of $901m with a 17.3 per cent trading profit margin.

Mr Nath added: "With our 12-point plan, we are fundamentally changing the way Smith & Nephew operates to drive higher growth and improve productivity.

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"It is starting to deliver, and, as we progress through the two-year life of the plan, we expect further operational and financial benefits, including a reduction in inventory levels and cash conversion to return to historic levels. We are benefiting from our increased investment in innovation, with more than 60 per cent of growth in 2022 coming from products launched in the last five years.

In a statement for investors, Deepak Nath, chief executive officer, said: "We made good progress during 2022 and ended the year in a much stronger position than we started."In a statement for investors, Deepak Nath, chief executive officer, said: "We made good progress during 2022 and ended the year in a much stronger position than we started."
In a statement for investors, Deepak Nath, chief executive officer, said: "We made good progress during 2022 and ended the year in a much stronger position than we started."

"We will continue to face macroeconomic headwinds in 2023. However, I believe the drivers of further growth are in place, including leading technologies across all three franchises and a clear path to improved execution in orthopaedics.”

Sheena Berry, equity research analyst at Quilter Cheviot said: “Smith & Nephew had a solid end to 2022 with underlying sales growth of 6.8 per cent in Q4 (the fourth quarter). The results themselves are largely in line with expectations and it is good to see no divergence from the market on the 2023 outlook.”