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.