Given its stellar performance and demonstrated resilience in the face of challenges, Philips intends to maintain its commitment to creating lasting value and delivering long-term impact.
PHILIPSA major Dutch health technology company has surpassed market expectations in its third quarter 2023 performance, raising its full-year outlook.
The company’s core profit more than doubled, reaching an impressive 457 million euros ($483.3 million), while its comparable sales saw a notable increase of 11%, totaling 4.5 billion euros.
Philips raises fiscal year outlook to 2023
in an officer Press release On October 23, Philips attributed this solid performance to growing demand for medical scanners, patient monitoring devices and personalized health services.
The company has adjusted its financial estimates for the full year in response to its improved performance and solid order book while acknowledging the uncertainties arising from the volatile geopolitical environment.
“Based on Philips’ strong year-over-year performance, strong order book and ongoing actions, the company is further raising its outlook for full year 2023, although uncertainties remain in an increasingly volatile geopolitical environment, ” it said. ,
Philips is now expecting comparable sales growth of 6-7% and adjusted EBITA profit margin of 10-11% for the year 2023. The Dutch technology company aims to achieve free cash flow at the upper end of the target range. EUR 0.7-0.9 billion.
The revised fiscal year guidance reflects an upward revision from its previous forecast of mid-single-digit sales growth and high single-digit profit margins.
Philips to diversify chip suppliers
While demand for its medical products boosted sales, new orders saw a 9% decline from last year, mainly due to lower demand from China following pre-pandemic growth, coupled with persistent supply chain challenges. .
To combat these challenges, the company’s CEO Roy Jacobs unveiled a strategic shift towards local production and diversification of chip suppliers in China, aimed at mitigating the impact of rising trade tensions.
The company’s strong third quarter performance, which exceeded the forecasts of analysts surveyed by the company, has been instrumental in strengthening its position and instilling confidence in its ability to navigate the dynamic market landscape.
With a strong order book and a focused approach towards improving operational efficiency, the company is poised for sustained growth despite persistent uncertainties in the global geopolitical arena.
“We have seen significant improvement in our operating performance, driven by our unwavering commitment to enhancing patient safety, strengthening the reliability of our supply chain, and establishing a streamlined operating model,” Jacobs said.
He further said that the company’s continued emphasis on innovations in predictive data analytics and artificial intelligence across its diverse portfolio has had a positive impact, thereby fostering an enabling environment to enhance the quality and efficiency of care delivery.
Given its stellar performance and demonstrated resilience in the face of challenges, Philips intends to maintain its commitment to creating lasting value and delivering long-term impact.
Chimamanda is a crypto enthusiast and experienced writer who focuses on the dynamic world of cryptocurrencies. She joined the industry in 2019 and has since developed her interest in emerging economies. She combines her passion for blockchain technology with her love for travel and food, bringing a new and fascinating perspective to her work.
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