- Koninklijke Philips N.V. PHG reported a second-quarter FY22 comparable sales decline of 7% year-on-year to €4.2 billion.
- Continued supply shortages and prolonged lockdowns in China led to the decline.
- The order book remained strong. The comparable order intake increased by 1%.
- Comparable sales for Diagnosis & Treatment businesses comparable sales declined 4%, with mid-single-digit growth in Image-Guided Therapy more than offset by a decline in Ultrasound and Diagnostic Imaging due to the semiconductor chip crisis. Comparable order intake increased by 3%, with growth across all businesses.
- The comparable sales in the Connected Care businesses declined 13% Y/Y due to Respironics field action consequences.
- The Personal Health businesses recorded a comparable sales decline of 5% Y/Y due to double-digit declines in China and Russia.
- Philips Respironics has produced 3 million replacement devices and repair kits to date.
- Due to lower sales and supply chain headwinds, the adjusted EBITA margin contracted 740 bps to 5.2%.
- Philips reported €306 million in operating cash outflow.
- Outlook: PHG revised its full-year 2022 outlook to 1%-3% comparable sales growth and ~10% Adjusted EBITA margin, driven by 6%-9% comparable sales growth in the second half of 2022.
- For the 2023-2025 period, Philips expects 4%-6% average annual comparable sales growth and an Adjusted EBITA margin of 14%-15%.
- Price Action: PHG shares traded lower by 10.79% at $19.75 in the premarket session on the last check Monday.
- Photo Via Wikimedia Commons
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