Philips sees sales fall for Sleep & Respiratory Care

AMSTERDAM – Philips reported a 16% decline in sales for its Connected Care business, which includes Sleep and Respiratory Care, for the second quarter of 2021 compared to the same period last year, in the wake of a massive recall of certain CPAP devices and ventilators. 

Mid-single-digit growth in Hospital Patient Monitoring was more than offset by a double-digit decline in Sleep & Respiratory Care, the company says. 

“We have mobilized the necessary resources across the company to address the component quality issues in certain of our sleep and respiratory care products,” stated Frans van Houten, CEO. “We fully understand the impact that this is having on patients, as their well-being is at the heart of everything we do at Philips. We are in discussions with the relevant regulatory authorities to obtain authorization to start deploying the repair kits and replacement devices that we are producing.” 

Overall, Philips reported group sales increased to EUR 4.2 billion for the second quarter of 2021, a 9% increase compared to the same period last year. Income from continuing operations decreased to EUR 65 million due to a EUR 250 million provision related to field actions in the second quarter to address the recall. 

In a regulatory update in its earnings, Philips said it has established call centers and a device registration process to support patients of affected devices. 

“The company is increasing its production, service and repair capacity and has requested the relevant regulatory clearances for the repair and replacement actions,” the company stated. “Subject to these regulatory clearances, Philips is ready to start deploying the repair kits and replacement devices that it is producing.”