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April 26, 2022

Philips reports group sales of $4.17bn in Q1 2022

Philips’ loss from continuing operations widened to €152m in the quarter.

Philips has reported group sales of $4.17bn (€3.9bn) in the first quarter (Q1) of 2022, compared to €3.8bn posted in the same period a year ago.

The Dutch health technology company posted a 4% decline in comparable sales in the quarter, compared to a 9% growth in Q1 2021.

The company’s Diagnosis & Treatment businesses reported a 2% reduction in comparable sales while the Connected Care businesses posted a 21% drop in comparable sales in the same period.

However, the Personal Health businesses’ comparable sales jumped by 8% in the quarter, supported by double-digit growth in Oral Healthcare.

Philips’ loss from continuing operations widened to €152m in the first three-month period of this year, from €34m in the prior-year quarter.

Adjusted EBITA also dropped to €243m from €362m on a year-on-year basis.

Comparable order intake grew by 5% in the quarter, due to high-single-digit growth in the Diagnosis & Treatment businesses.

Philips CEO Frans van Houten said: “Thanks to the hard work of our people, we recorded better than expected sales of €3.9bn in very challenging circumstances, with significant supply chain headwinds, as well as the consequences of the Respironics field action. The adjusted EBITA margin for the group was 6.2% in the quarter.

“The strong customer demand and order book, coupled with our first-quarter sales performance, support the growth and margin expansion range for the full year as communicated in January 2022.

“At the same time, it is important we recognise the increasing risks related to the Covid-19 situation in China, the Russia-Ukraine war, supply chain challenges and inflationary pressures, which may potentially impact our ability to convert our strong order book to sales and achieve our margin target if conditions deteriorate further.”

The company announced its quarterly earnings days after its subsidiary, Philips Respironics, recalled its V60/V60 Plus and V680 ventilators following the identification of a potential issue with the devices’ electrical circuit.

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