Philips Reports $95.8 Million Profit in Q3, Raises Full-year Outlook Amid Increased Device Demand

Sales rise 11% due to increased demand; despite a 9% drop in orders and supply chain issues, Philips readjusts full-year growth projection to 6-7% and profit margin to 10-11%.

• Philips' Q3 2023 profit of $95.8 million exceeded expectations, with earnings adjusted for non-recurring costs and discontinued operations standing at 36 cents per share.
• The Amsterdam-based company reported a total revenue of $4.87 billion for the quarter, a rise driven by increased demand for its medical imaging equipment and personal health devices.
• Despite encountering supply chain issues and a 9% drop in new orders, primarily due to reduced demand from China, Philips reported a rise of 11% in comparable sales at 4.5 billion euros.
• CEO Roy Jakobs indicates strategic changes to address these issues, including localizing production for China and diversifying chip suppliers to navigate trade tensions.
• Following these results, Philips has raised its full-year outlook, projecting a comparable sales growth of 6% to 7% and an adjusted EBITA profit margin of 10% to 11%, as opposed to its former expectation of mid-single digit sales growth and a high single digit profit margin.

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