Smith & Nephew Reports Growth Amid China Market Challenges

Published 2 hours agoSNN

Smith & Nephew Reports Growth Amid China Market Challenges

Smith & Nephew has reported steady growth in the first quarter of 2025, overcoming headwinds in the Chinese market. The company posted an underlying revenue growth of 5.3% in 2024, with reported growth at 4.7%. These results reflect the firm's resilience amidst the constraints posed by the market. Meanwhile, Smith & Nephew's stock price saw a minor rise, trading at $26.92 USD, which marked a 0.49% increase as of April 30, 2025.

One of the main hurdles the company faced was the Volume Based Procurement (VBP) program in China, introduced in May 2024. This initiative mainly affected the Sports Medicine Joint Repair and Reconstruction segments and is expected to continue impacting revenue growth into the first half of 2025. Reuters highlighted these challenges as significant pressure points for the company's operations in the region.

Looking ahead, Smith & Nephew projects an underlying revenue growth of around 5% for the entire year of 2025, with reported growth anticipated at approximately 4.8%. The company aims for a trading profit margin between 19.0% and 20.0%, focusing on operational efficiencies and cost-cutting strategies to meet its financial targets.

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