Keystone-SDA
Philips on Monday lowered its comparable sales outlook for 2024, after taking into account a deterioration in demand in China, when publishing its third quarter results.
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October 28, 2024 – 08:46
(Keystone-ATS) “During the quarter, hospital and consumer demand in China further deteriorated, while we continued to see solid growth in other regions,” Philips CEO Roy Jakobs said in a statement.
“The significant deterioration in demand in China leads to an updated comparable sales growth outlook of 0.5 to 1.5 percent for the full year 2024,” added the Dutch equipment maker medical.
Philips previously expected comparable annual sales growth of between 3 and 5 percent.
The group reported this quarter flat sales growth year-on-year, at 0%, due to the decline in China, mainly in the “Personal Health” segment, which notably includes personal care and household appliances. , oral care and maternal and child care.
Philips, however, posted a net profit of 181 million euros (nearly 170 million francs) in the third quarter, compared to 90 million in the same period last year, and above the expectations of analysts who were counting on 173 million. euros, according to a consensus shared by the company.
The Dutch group attributes this increase to the increase in its gross margin during the quarter and to lower costs linked to recalls of its Respironics devices, “partially offset by higher tax charges”.
Philips announced in April that it would pay $1.1 billion to settle litigation in the United States after a massive recall of defective breathing devices for people suffering from sleep problems.
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