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January 25, 2022

Philips reports sales decline in Q4 2021

The company reported a 4% increase in comparable order intake in Q4, driven by growth in the Diagnosis & Treatment businesses.

Philips has reported group sales of $5.54bn (€4.9bn) in the fourth quarter (Q4) of 2021 as against €5.2bn in the same period of 2020.

Net income for the latest quarter was €151m as against €607m in Q4 2020.

It reported a 10% comparable sales decline in Q4 2021 as against a growth of 6% in the year ago quarter.

For the full year 2021, the company posted $19.47bn (€17.2bn) in group sales as against €17.3bn in 2020.

It posted a 1% comparable sales decline in 2021 as against a growth of 3% in 2020.

During the full year, the company witnessed high-single-digit comparable sales growth in the Diagnosis & Treatment and Personal Health businesses, which offset a drop in the Connected Care businesses.

In the fourth quarter, as well as the full year, the comparable order intake of the group grew by 4%, mainly driven by double-digit growth in the Diagnosis & Treatment businesses.

The quarter has seen income from continuing operations amount to €139m, which included an impact of €220m associated with the addition to the Respironics field action provision. The income from continuing operations in Q4 2020 was €508m.

The adjusted EBITA in Q4 2021 was €647m, or 13.1% of sales, as against €995m, or 19% of sales, in the corresponding period of the prior year.

Operating cash flow was €720m in the quarter, leading to a free cash flow of €519m.

For the full year, the company reported €612m income from continuing operations and included an impact of €719m associated with the Respironics field action provision. In 2020, the company’s income from continuing operations stood at €999m.

The adjusted EBITA was €2.05bn, or 12% of sales, as against €2.27bn, or 13.2% of sales, in 2020.

Its operating cash flow for the full year 2021 was €1.62bn, leading to a free cash flow of €900m.

In the fourth quarter of 2021, Hospital Patient Monitoring orders showed continued growth, driven by the increase in adoption of patient care management solutions in high- and low-acuity care settings in the hospital.

The comparable order intake of Connected Care businesses fell 10% in Q4 2020.

The comparable sales of Personal Health businesses decreased by 3%, mainly impacted by shortages in the supply chain for the quarter. The businesses delivered 9% growth in comparable sales for the full year.

In Asia, Europe and North America, the company signed 35 new long-term strategic partnerships over the past year.

This includes a 10-year deal with a US-based integrated healthcare system for enterprise imaging solutions, advanced patient monitoring, and analytics and services for improving performance and operational outcomes.

Through the acquisition of medical technology firm Vesper Medical, Philips further expanded its image-guided therapy portfolio.

The company also acquired Cardiologs, which added a vendor-neutral heart disorder screener as well as electrocardiography (ECG) analysis applications that are based on machine learning algorithms.

In 2021, the FDA approved the MR 5300 system, IntelliVue MX750 and MX850 patient monitors.

The MR 5300 system automates and simplifies complex clinical and operational work for imaging departments.

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