- Koninklijke Philips N.V. PHG shares are up Monday premarket following its first-quarter FY23 results. It reported a first-quarter comparable sales growth of 6% year-on-year to €4.2 billion, mainly driven by the Diagnosis & Treatment businesses.
- Additionally, momentum for the Diagnosis & Treatment and Connected Care businesses in China supported the sales growth.
- Philips' order book remains strong and is 10% higher than one year ago despite flat order intake growth.
- Comparable sales for Diagnosis & Treatment businesses grew by 15%, with double-digit growth in Ultrasound and Image-Guided Therapy and mid-single-digit growth in Diagnostic Imaging, driven by continued supply chain improvements. Comparable order intake increased by double-digits, with double-digit growth in Image-Guided Therapy and Enterprise Diagnostic Informatics and mid-single-digit growth in Diagnostic Imaging.
- The comparable sales in the Connected Care businesses increased by 3% Y/Y, driven by double-digit growth in Hospital Patient Monitoring, offset mainly by a decline in Sleep & Respiratory Care.
- The Personal Health businesses recorded a comparable sales decline of 6% Y/Y due to the anticipated lower consumer demand.
- Philips Respironics has produced more than 95% of the new replacement devices and repair kits required for the remediation of the registered devices.
- The adjusted EBITA margin expanded by 240 bps to 8.6%.
- Philips Respironics earmarked €575 million related to the anticipated resolution of the Respironics recall-related economic loss class action in the U.S.
- Philips generated €202 million in operating cash flow, compared to an outflow of €(227) million in Q1 FY22.
- CEO Roy Jakobs: "Resolving the Philips Respironics recall for patients remains our highest priority. In the first quarter, we have recorded a provision in anticipation of a resolution of the economic loss class action in the US. This is an important step in addressing the litigation related to the recall."
- "Our supply chain improvements enabled good growth across the Diagnosis & Treatment businesses and in Hospital Patient Monitoring. Supported by significant change management efforts, we have reduced the workforce by approximately 5,400 roles out of the planned reduction of 10,000 roles globally."
- Price Action: PHG shares traded higher by 12.66% at $21.44 on the last check Monday.
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