Philips Q4 sales EUR 5.4 billion, 4,000 jobs cuts underway
Christian Fernsby ▼ | January 30, 2023
Sales for Philips in the fourth quarter were EUR 5.4 billion, with 3% comparable sales growth.Article continues below
That was driven by improved component supplies, for example in hospital patient monitoring, image-guided therapy, and ultrasound. However, Philips’ supply chain situation remains challenging, and the company anticipates further improvements to be gradual.
The combined Diagnosis and Treatment and Connected Care businesses grew 5% on a comparable basis.
Adjusted EBITA for the Group was EUR 651 million, or 12% of sales, due to cost inflation, partly offset by pricing and productivity measures.
Philips’ comparable order intake declined 8% due to lower demand for COVID-19-related acute care products compared to 2021 and company actions to improve the order book margin profile.
For the full year 2022, Philips’ performance was impacted by operational and supply challenges, inflationary pressures, the COVID situation in China, the consequences of the Respironics field action, and the Russia-Ukraine war. As a result, comparable sales declined 3%, and the Adjusted EBITA margin decreased to 7.4%.
Roy Jakobs, CEO of Royal Philips: " The previously announced workforce reduction by 4,000 roles globally and other actions are being implemented as planned." ■ What to read next
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