Healthcare technology firm Philips has reported Q3 sales of €4.1bn, with 4% comparable sales growth. It said net income from continuing operations increased 22% to €263m, reflecting a 12% increase in adjusted EBITA to €532m.
The results follow the firm’s refocusing on health and its re-categorisation as a healthcare firm across stock markets. As of 30 September 2017, Philips’ shareholding in Philips Lighting was 41.27%. It said loss of control was “highly probable within one year” due to further sell-downs.
Third-quarter highlights 2017 (2016)
- Sales €4,148m (€4,157m)
- Income from operations (EBIT) €299m (€381m)
- as a % of sales 7.2% (9.2%)
- Financial expenses, net €35m (€189m)
- Income from continuing operations €263m (€214m)
- Net income €423m (€383m)
- Net income attributable to shareholders per common share - diluted 0.33 (0.40)
- EBITA €364m (€441m)
- as a % of sales 8.8% (10.6%)
- Adjusted EBITA €532m (€474m)
- as a % of sales 12.8% (11.4%)
- Adjusted EBITDA €686m (€646m)
- as a % of sales 16.5% (15.5%)
Frans van Houten, CEO said: “Philips’ performance in the third quarter demonstrates that we continue to deliver on our plan, with comparable sales growth of 4% driven by double-digit growth in our growth geographies, most notably in China, and 8% growth in our Connected Care & Health Informatics businesses.
“We delivered an Adjusted EBITA improvement of 140 basis points driven by higher volumes and productivity program savings that are well on track. Moreover, we had a solid 5% comparable order intake growth on the back of 8% order intake growth in the third quarter of last year, maintaining momentum.
Acquisitions and medical trials
Van Houten said: “We have completed the Spectranetics acquisition, made a strong start with the integration process, and launched Stellarex in the US after receiving FDA approval. Stellarex is the next-generation drug-coated balloon (DCB) to treat patients with peripheral arterial disease.
“The latest results from the ongoing ILLUMENATE European randomized clinical trial revealed that Stellarex is the first low-dose DCB* to demonstrate a lasting treatment effect two years after the treatment, compared to the current endovascular standard of care in the US.
“Despite ongoing global uncertainties, our outlook for 2017 remains unchanged. Supported by our 5% year-to-date comparable order intake growth, we are on track to deliver 4-6% comparable sales growth and an improvement in adjusted EBITA margin of around 100 basis points this year.”
Philips reached agreement with the US government on a consent decree over on its defibrillator manufacturing in the US. Philips said it was fully prepared to fulfil the terms of the decree.