Philips: quarterly loss on heavy provision

(CercleFinance.com) - Philips has reported a loss from operations of E824m for Q1 2024, due to a heavy provision announced today to settle a dispute involving its US subsidiary Respironics.


On an adjusted basis, the Dutch medical technology group posted an EBITA margin of 9.4% on sales of E4.1bn, up 2.4% LFL, thanks to both mature and growth regions.

This growth was achieved despite a decline in China, where the market is impacted by anti-corruption measures and depressed household demand. Because of this country, Philips' order intake fell by 3.8% on a comparable basis.

Philips nevertheless confirms its target of an adjusted EBITA margin of 11%-11.5% and LFL sales growth of 3%-5% for 2024, as well as its confidence in its 2025 plan, while acknowledging that uncertainties remain.


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