Royal Philips 4Q Sales, Net Profit Fell Amid Supply Chain, Covid-19 Issues

By Kyle Morris

Royal Philips NV said Monday that sales and net profit for the last quarter of the year fell as it continued to experience challenges related to the supply chain and Covid-19.

The Dutch health-technology company said group sales for the fourth quarter of 2021 were 4.9 billion euros ($5.56 billion) compared with EUR6.00 billion a year earlier.

Net profit was EUR157 million compared with EUR603 million for the same period the year before.

Fourth-quarter group adjusted earnings before interest taxes and amortization--one of the company's preferred metrics, which strips out exceptional and other one-off items--were EUR647 million compared with EUR995 million in 2020.

Full-year 2021 sales were EUR17.2 billion and 2021 adjusted Ebita was EUR2.05 billion

For 2022, Philips expects growth and margin expansion, despite short-term volatility and headwinds related to Covid-19 and supply-chain challenges. It expects to start the year with a comparable sales decline, followed by a recovery and strong second half. For the full year, it targets 3%-5% comparable sales growth.

Philips declared a dividend of EUR0.85, flat on year.

Write to Kyle Morris at kyle.morris@dowjones.com

(END) Dow Jones Newswires

January 24, 2022 01:45 ET (06:45 GMT)

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