Philips Q3 Profit Climbs; Cuts FY24 Comparable Sales Growth Outlook - Quick Facts

Philips Electronics

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(RTTNews) - Dutch consumer electronics giant Koninklijke Philips N.V. (PHGFF.PK, PHG) reported Monday that its third quarter net income attributable to shareholders climbed to 181 million euros from last year's 88 million euros, reflecting higher gross margin and lower Respironics field action running costs, partly offset by higher tax expenses. On a per share basis, quarterly earnings rose to 0.19 euros from 0.09 euros in the previous year.

But sales for the third quarter declined to 4.38 billion euros from 4.47 billion euros in the prior year.

Group comparable sales were flat on the back of 11% growth in the third quarter 2023 and deterioration in demand in China. The company delivered growth in all other regions and from an increase in royalty income. China remains a fundamentally attractive growth market for Philips in the long term, with market conditions expected to remain uncertain.

Comparable order intake in the quarter declined 2% due to China, with solid order intake growth in Diagnosis & Treatment, particularly in the US.

The significant deterioration in demand in China has led to an updated outlook for comparable sales growth of 0.5% to 1.5% for the full year 2024. Previously, comparable sales growth was expected to be between 3% and 5%.

But Comparable sales growth outside of China remains within the 3-5% range. The company now expects the annual adjusted EBITA margin to be around 11.5%, which is at the upper end of the previous range of 11% to 11.5%.

The company now projects annual free cash flow to be around 0.9 billion euros, which is at the lower end of the range of 0.9 billion euros to 1.1 billion euros. For more earnings news, earnings calendar, and earnings for stocks, visit rttnews.com.