Philips CEO ‘encouraged’ by Q2 results 

AMSTERDAM – Philips reported group sales of EUR 4.5 billion for the second quarter, with comparable growth of 2%. 

The company reported a 9% increase in comparable order intake. 

“I am encouraged by our return to order intake growth this quarter, primarily driven by North America,” said Roy Jakobs, CEO. “Within a challenging macro environment we achieved strong margin improvement, supported by our productivity program, solid operational cashflow due to improved working capital management and comparable sales growth in line with our plan. We continue to focus on enhancing execution, improving end-to-end supply chain resilience and increasing agility and productivity through simplifying our operating model. Patient safety and quality remains our number one priority.” 

Other results for the quarter: 

• Income from operations EUR 816 million, including EUR 538 million insurance income related to Respironics liability claim 

• Adjusted EBITA margin increased to 11.1% of sales 

• Operating cash inflow of EUR 89 million, with a free cash outflow of EUR 64 million 

For its Connected Care business, which includes sleep and respiratory care, Philips reported comparable growth of 2%, driven by a strong showing in enterprise informatics, while monitoring was flat on the back of strong double-digit growth in the second quarter of 2023. Adjust EBITDA for the business improved to 12.2%, driven by improved sales, pricing and productivity measures. 

In June, the Pittsburg Post-Gazette reported that Philips will cut 300 manufacturing jobs in Western Pennsylvania and relocate about 500 employees from its Pittsburgh headquarters to its two major plants in nearby suburbs. 

Philips continues to expect 3% to 5% comparable sales growth, an adjusted EBITDA margin of 11% to 11.5% and free cash flow of up to EUR 1.1 billion for the full year 2024.