Philips 3Q Net Profit Rose; Targets Higher Profitability for 2021-2025
October 19 2020 - 1:54AM
Dow Jones News
By Adria Calatayud
Koninklijke Philips NV said Monday that third-quarter net profit
rose and exceeded expectations, and that the company is targeting
accelerated sales growth and higher profitability in the 2021-2025
period.
The Dutch medical-technology group made a net profit from
continuing operations of 340 million euros ($398.4 million) for the
quarter, compared with EUR208 million for the same period a year
before. Analysts expected a net profit of EUR274 million, according
to a consensus estimate provided by the company.
Quarterly sales increased to EUR4.98 billion from EUR4.70
billion a year before, Philips said. Comparable sales grew 10%, it
said. Analysts expected third-quarter sales to come in at EUR4.82
billion with comparable sales growth of 5.4%, according to a
company-provided consensus.
Adjusted earnings before interest, taxes and amortization margin
for the third quarter was 15.4%, the company said
Philips said it continues to see uncertainty and volatility
related to the impact of the coronavirus pandemic across the world,
but reiterated its guidance of modest comparable sales growth and
an unchanged adjusted Ebita margin for 2020.
For the 2021-2025 period, the company said it is 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 Adria Calatayud at adria.calatayud@dowjones.com
(END) Dow Jones Newswires
October 19, 2020 01:39 ET (05:39 GMT)
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