Dec 8 (Reuters) – Smith & Nephew unveiled a new strategy on Monday, targeting faster sales growth and more than $1 billion in free cash flow by 2028, as the British medical products maker looks to build on its turnaround plan.
The company raised its 2025 free cash flow forecast for the second time in a month to around $800 million, from $750 million previously expected.
The group, which makes orthopaedic implants, wound dressings and other surgical aids, unveiled the new strategy following the completion of a three-year turnaround plan aimed at transforming its largest business segment, orthopaedics, and cutting costs across operations.
The UK-based company said it plans to further simplify its product offerings, reduce inventory by around $500 million, and take a non-cash charge of $200 million in 2025 as a result.
The company is targeting a 6%-7% compounded annual growth rate in underlying revenue and more than $1 billion in free cash flow in 2028.
It expects to report around 6% underlying revenue growth in 2026. For 2025, it still expects underlying revenue growth of 5%.
(Reporting by Simone Lobo in Bengaluru; Editing by Subhranshu Sahu)
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