Philips: market shocked by increased quarterly loss

(CercleFinance.com) - On Monday Philips reported a loss for its first quarter, while this did not come as a surprise, given the difficulties currently faced by its respiratory products division in the United States.


The Dutch healthcare equipment specialist posted a loss from continuing operations of 152 million euros in Q1, over quadruple the loss of 34 million euros posted a year earlier.

Sales increased 2% to 3.9 billion euros as reported, although were down 4% LFL.

These figures are broadly in line with the consensus, with Philips warning in January that it was expecting a difficult start to the year, particularly due to recurring problems in its respiratory assistance division.

The group had also warned about the impact of current supply problems.

In a statement, Philips highlighted "increasing risks" relating to the evolution of the Covid pandemic in China, the Ukrainian conflict and inflationary pressures.

It says it intends to launch further cost-cutting measures and raise prices to deal with all these pressures.

This shocked investors, with the share down over 10% in Amsterdam following this publication.


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