Philips registers profits of 338 million euros in the third quarter of the year
The multinational anticipates an acceleration in the average annual growth of its comparable sales to a range of between 5 % and 6 % for the period 2021-2025
Philips achieved an attributable net profit of 338 million euros in the third quarter of the year, which represents an improvement of 64.9 % compared to the result recorded by the Dutch multinational between July and September 2019, according to the company.
Philips sales in the third quarter of 2020 increased 5.9 % year-on-year to € 4.98 billion, with growth of 35.9 % in the connected care area, focused on hospital ventilators, diagnostic imaging and monitors, whose revenues reached 1,556 million, while the segment of diagnosis and treatments reduced sales by 6.9 %, to 1,971 million.
On its side, the Philips personal health unit had a turnover of 1,376 million euros, 1.3 % more than in the third quarter of 2019.
Also, the company highlighted that, in the third quarter, it achieved savings in acquisitions of 62 million euros, while in general expenses and other productivity programs the savings were 58 million euros. As a result, Philips expects to generate more than € 400 million in productivity savings in 2020 and exceed € 1.8 billion in savings during the 2017-2020 period.
Thus, in the first nine months of the year, Philips obtained an attributable net profit of 584 million euros, 4.6 % below the result corresponding to the same period of 2019, while the company’s revenues totaled between January and September a total of 13,534 million, in line with the turnover of the previous year.
“Looking ahead, we continue to see uncertainty and volatility related to the impact of Covid-19 around the world, but our order book remains strong,” stated Frans van Houten, CEO of Philips. “For the full year 2020, we continue to expect to deliver modest and comparable sales growth, with an adjusted Ebita margin around last year’s level,” he added.
On the other hand, facing the 2021-2025 period, the multinational anticipates an acceleration in the average annual growth of its comparable sales to a range of between 5 % and 6 %, as well as an improvement of between 60 and 80 basis points in the adjusted Ebita margin, which will reach a level close to 15 % by 2025.
Source: dpa
