Takeaways
- Philips said improved operating performance helped it report better-than-expected third-quarter results and raise its full-year guidance. li>
- The health technology company said it has improved the reliability of its supply chain and simplified its operations.
- The health technology company said it has improved the reliability of its supply chain and simplified its operations.
- li>
- Philips indicated that the mass recall of its sleep apnea devices remains its top priority.
Philips' (PHG) American depositary receipts (ADRs) rose as the health technology company reported better-than-expected results and raised its outlook for improved operating performance.
The Netherlands-based multinational reported third-quarter fiscal 2023 earnings before interest, taxes, depreciation and amortization (EBITA) up 119% from last year to 457 million euros ($483.3 million), and comparable sales jumped 11% to 4.5 billion euros ($4.77 billion).
Comparable revenue jumped 14% for its Diagnostics and Treatment Unit, climbed 10% in its Connected Care division and 7% in its Personal Care segment. However, slowing Chinese demand led to a 9% drop in orders.
CEO Roy Jakobs awarded These results reflect the fact that Philips has strengthened the reliability of its supply chain and established “a simplified operating model”.
He explained that due to the improved performance of the company, it is increasing its EBITDA for the full year at an increase of 10 to 11%. , up from its previous forecast of high single-digit percentage growth. It expects its comparable sales to rise 6 to 7 percent, compared with the previous estimate of a mid-single-digit percentage gain.
Earlier this month, the Food and Drug Administration (FDA) informed Philips that it was not satisfied with how the company had handled the recall of millions of its devices for #39;sleep apnea. The recall was initiated following concerns that polyurethane foam used to reduce noise could break down and be inhaled or swallowed by patients. In his report, Jakobs noted that finalizing the recall “remains our highest priority.”
Philips ADRs increased by more than 2% as of noon ET Monday following the news, and have added a quarter of their value so far this year.
Source: investopedia.com
