Smith+Nephew (NYSE:SNN) announced its planned strategy for growth and confirmed its financial guidance through 2024.
London-based Smith+Nephew outlined its plan with a focus centered around innovation, productivity and commercial execution.
The company said in a news release that it plans to build on its product portfolio and pipeline, deliver manufacturing and supply optimization programs, sustain growth in advanced wound management and sports medicine (about 60% of its portfolio) and re-establish momentum and growth in its orthopedics franchise.
Smith+Nephew said it is targeting organic revenue growth consistently between 4% and 6% by 2024 and plans to maintain a higher investment in innovation and continue making acquisitions of new technologies to expand into high-growth segments.
The company confirmed its commitment to return surplus capital to shareholders through a regular annual share buy-back. Smith+Nephew expects that to range between $250 million and $300 million in 2022.
“Smith+Nephew is at an inflection point, with a clear ambition and strategy for growth,” Smith+Nephew CEO Roland Diggelmann said in the release. “We are transforming to a sustainably higher growth company with innovation at its core, building on our strong portfolio and pipeline of new technologies, and underpinned by improving productivity and commercial execution.
“With financial discipline, we will continue to invest in the business to take advantage of the opportunities we see, while also driving shareholder returns.”