Philips reports sales growth for Q3

AMSTERDAM – Philips’ Connected Care business saw a 10% increase in comparable sales in the third quarter, with double-digit growth in monitoring. 

Overall, the company reported group sales of EUR 4.5 billion and comparable sales growth of 11%. 

“Our improved operational performance was driven by our focus on execution to enhance patient safety and quality, strengthen our supply chain reliability and establish a simplified operating model,” said Roy Jakobs, CEO. “The order book remains strong, and we are taking the necessary actions to improve order intake by shortening lead times from order to delivery and building on the positive impact we are making with our innovations, for example in predictive data analytics and artificial intelligence across our portfolio, to help improve the quality and efficiency of care delivery.” 

Income from operations was EUR 224 million for the quarter, compared to a loss of EUR 1,529 million for the same quarter in 2022. Adjusted EBITDA increased to EUR 457 million, or 10.2% of sales, compared to 4.8% of sales in the same quarter in 2022. 

Completing the Philips Respironics recall remains the company’s “highest priority,” with the remediation of the sleep therapy devices almost complete and remediation of the ventilators ongoing, said Jakobs. Earlier this month, however, the U.S. Food and Drug Administration requested that Philips conduct additional testing on the health risks related to the sound abatement foam in certain recalled ventilators and BiPAP and CPAP devices.  

In October 2023, Philips Respironics received preliminary court approval for the settlement agreement to resolve all economic loss claims in the U.S. Multidistrict Litigation (MDL) related to the recall, for which Philips had recorded a provision of EUR 575 million in Q1 2023. The settlement does not include or constitute any admission of liability, wrongdoing or fault by any of the Philips parties. 

For the full year, Philips expects 6-7% comparable sales growth and an adjusted EBITA margin of 10%-11%.