By Razak Musah Baba

Netherlands' Royal Philips NV (PHIA.AE) said Monday it will begin a 1.5 billion euros ($1.71 billion) share buyback program as it posted a 36% rise in second-quarter net profit.

The health-technology company's net income from continuing operations during the three months to the end of June rose to EUR161 million from EUR118 million the year earlier, while sales increased 4% to EUR4.3 billion from EUR4.13 billion during the second quarter in 2016.

Adjusted earnings before interest and taxes or Ebit, the company's preferred measure of its operational performance, rose 15% to EUR439 million during the quarter from EUR383 million a year earlier, Philips said.

"Philips' performance in the second quarter of 2017 was solid, with 4% comparable sales growth in our HealthTech portfolio driven by Western Europe, North America and China, and a strong 8% increase in our order intake. We achieved a 90-basis-point increase in the Adjusted Ebita margin, driven by higher volumes, operational improvements and cost productivity," Chief Executive Officer Frans van Houten said.

"In line with our capital allocation policy, which aims at a balanced mix of investments in organic and inorganic growth opportunities, actions to drive balance sheet efficiency and returns to shareholders, we also announced a new EUR1.5 billion share buyback program to be launched in the third quarter of 2017," Mr. van Houten said.

The chief executive added that despite continued volatility in the markets in which it operates, the company's outlook for 2017 remains unchanged. The chief executive said the company is on track to deliver 4%-6% comparable sales growth and an improvement in adjusted Ebita margin of around 100 basis points per year.

Write to Razak Musah Baba at razak.baba@wsj.com; Twitter: @Raztweet

(END) Dow Jones Newswires

July 24, 2017 01:42 ET (05:42 GMT)