Philips Adds More Targets to 2021-25 Growth Plan

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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