Philips Adds More Targets to 2021-25 Growth Plan
November 06 2020 - 2:59AM
Dow Jones News
By Matteo Castia
Koninklijke Philips NV said Friday that it has included more
targets in its 2021-25 growth plan, building on those announced in
October.
The Dutch medical-technology group said it is now targeting
accelerated sales growth and an adjusted earnings before interest,
taxes, depreciation and amortization margin in the high-teens by
2025.
The company said it is also aiming for an extra 400 million
euros ($473.2 million) of net savings a year between 2021 and 2025,
in an effort to reach extra cumulative net savings of EUR2 billion
by the end of that period.
Philips added that it is seeking to achieve mid-to-high-teens
organic return on invested capital by 2025.
The company also reiterated the targets it had outlined in its
third-quarter earnings on Oct. 19, when it said it was targeting an
acceleration in the average annual comparable sales growth to
5%-6%, an adjusted Ebita margin improvement of 60-80 basis points
on average annually from 2021 and a free cash flow above EUR2
billion by 2025.
Write to Matteo Castia at matteo.castia@dowjones.com
(END) Dow Jones Newswires
November 06, 2020 02:44 ET (07:44 GMT)
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