Philips raises full-year outlook as Q3 profit jumps

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Dutch health technology company Philips on Monday raised its full-year outlook as it beat analysts' expectations for third-quarter core profit and comparable sales.

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23 Oct 2023

Core profit more than doubled to 457 million euros ($483.3 million), while comparable sales were up 11% at 4.5 billion euros as demand for its medical scanners, patient monitoring equipment and personal health devices increased.

New orders, however, were down 9% from last year, as demand from China continued to cool from a pre-pandemic boom and supply chain problems persisted.

CEO Roy Jakobs in an interview with Reuters last week said Philips aimed to make more products for China locally and to buy chips from several suppliers as ways to deal with rising trade tensions.

Despite the drop in orders, Philips said it now expected 6% to 7% comparable sales growth over 2023, with a profit margin (adjusted EBITA) of 10%-11%.

Its previous outlook guided for mid-single digit sales growth with a high single digit profit margin.

Analysts in a company-compiled poll had predicted adjusted