Philips office building in Warsaw, Poland on July 29, 2021.
Photo only | Photo only | Getty Images
Dutch health technology company Phillips On Monday, the company raised its full-year outlook as it beat analysts’ expectations for core profit and comparable sales in the third quarter.
Core profit more than doubled to 457 million euros ($483.3 million), while comparable sales rose 11% to 4.5 billion euros as demand increased for its medical scanners, patient monitors and personal health devices.
However, new orders fell 9% year-on-year as demand from China continued to cool after the pre-pandemic boom and supply chain issues continued.
CEO Roy Jakobs said in an interview with Reuters last week that Philips wanted to make more products for China locally and buy chips from multiple suppliers to deal with rising trade tensions.
Despite the decline in orders, Philips now expects comparable sales growth of 6% to 7% in 2023 and a profit margin (adjusted EBITA) of 10% to 11%.
The previous outlook was for mid-single-digit sales growth and a high-single-digit profit margin.
Analysts had forecast in a survey conducted by the company that adjusted earnings before interest, taxes, depreciation and amortization would rise to 389 million euros in July-September from 209 million euros a year earlier, with comparable sales growth of 8%.