Philips 3Q Sales Missed Market Views, Fiscal Year Comparable Sales Expected to Grow Slightly -- Update
October 18 2021 - 2:01AM
Dow Jones News
By Sabela Ojea
Koninklijke Philips NV reported on Monday a significant rise in
net profit for the third quarter but suffered a decline in sales
for the period, which also missed market views.
The Dutch medical-technology group said its results were hit by
supply-chain issues, which led to longer lead times to convert its
strong order book to revenue during the period.
The company, which now expects to report low-single-digit
comparable sales growth with a modest adjusted Ebita margin
improvement for the full year, said these supply-chain challenges
are expected to continue in the fourth quarter.
Philips posted a net profit from continuing operations of 2.98
billion euros ($3.46 billion) compared with EUR340 million for the
same period a year earlier. It was expected to decline to EUR236
million, taken from the company's compiled consensus.
The company's net profit result was mainly driven by the sale of
its Domestic Appliances business, it said.
"With this, we concluded our major divestments, allowing us to
focus fully on extending our leadership in health technology and
continuing our transformation into a solutions company," Chief
Executive Frans van Houten said.
Quarterly sales decreased to EUR4.16 billion from EUR4.98
billion for the year earlier period, when they were expected to
reach EUR4.18 billion, according to the company's compiled
consensus.
Comparable sales fell 7.6%, Philips said.
Adjusted earnings before interest, taxes and amortization margin
for the third quarter was 12.3%, the company said.
Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix
(END) Dow Jones Newswires
October 18, 2021 01:46 ET (05:46 GMT)
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