Philips sees improvements in financial results 

AMSTERDAM – Philips has reported 6% comparable sales growth for its Connected Care division in the second quarter, with double-digit growth in Monitoring, partly offset by a decline in Sleep & Respiratory Care. 

Overall, the company reported group sales of EUR 4.5 billion and comparable sales growth of 9%. 

“We are progressing to plan on our three priorities to enhance patient safety and quality, strengthen supply chain reliability, and simplify how we work, and I am pleased with our improved operational performance across all segments and geographies in the quarter,” said CEO Roy Jakobs. “We delivered 9% comparable sales growth, increased profitability and improved cash flow, against a backdrop of ongoing macroeconomic and geopolitical challenges. Our order book increased year-on-year and will continue to support growth in the coming quarters.” 

Philips reported income from operations was EUR 221 million for the second quarter of 2023 vs. EUR 11 million for the same period in 2022. It reported adjusted EBITDA increased to 10.1% of sales vs. 5.2% of sales. 

Related to its recall of CPAP devices, Philips said it has produced about 99% of the new replacement devices and repair kits required for the remediation of registered affected devices and that it has provided the “vast majority” of produced devices to patients and home care providers. The company said the remediation of affected ventilators is ongoing. 

Philips said its litigation and investigation by the U.S. Department of Justice related to the field action are ongoing, as well as discussions on a proposed consent decree. 

For the full year 2023, Philips expects mid-single-digit comparable sales growth and an adjusted EBITDA margin at the upper end of the high-single-digit range.