Philips however in a statement revealed that, even though its net profit for 2020 rose, it saw “uncertainty” this year due to the COVID-19 pandemic.
Dutch electronic giant Koninklijke Philips N.V. (NYSE: PHG) has announced that the company recorded an increase in its fourth-quarter net income in 2020. Philips revealed a 9.17% rise year-on-year to 607 million euros from 556 million in Q4 2019. According to a consensus provided by the electronic giants, analysts expected a 636 million euros net profit from the company. It’s earnings per share were also reportedly up from 0.60 euro, 12 months ago to 0.66 euro.
After Philips published its Q4 results, in the pre-market, PHG stock is up 0.29%, trading at $55.72.
Annual sales rose to 19.5 billion euros, signaling a 3% rise in sales growth as its comparable order intake also saw a 9% increase. The consumer electronic giants also announced an increase from 1,192 million euros in 2019 to 1,205 million with regards to their income from continuing operations. Adjusted EBITA margin saw a 13.2% rise in sales, in line with 2019.
Frans Van Houten, Chief Executive officer of the company speaking after the announcement stated that they were pleased with the results and it was a direct indication of their efforts in pushing the company to greater heights. “I am pleased that, as a result of these efforts, in the quarter we recorded 7% comparable sales growth for the Group and 7% comparable order intake growth. The Adjusted EBITA margin improved by 110 basis points, and we delivered a strong free cash flow of EUR 1,055 million,” he said.
Philips, after championing the home appliances and lighting world for decades is now focused on healthcare and is set to see an improvement of 60-80 basis points in its EBITA margin. The company announced in the early stages of January 2020 that it would sell off its home appliance unit over the coming year-and-a-half to channel their full concentration on health sector products.
Philips however in a statement revealed that, even though its net profit for 2020 rose, it saw “uncertainty” this year due to the COVID-19 pandemic.
“Looking ahead, we continue to see uncertainty related to the impact of Covid-19 across the world,” Van Houten stated. He added that, the electronic giants also plan to improve their growth in Diagnostic & Treatment and Personal Health in their quest to deliver “low-single-digit comparable sales growth” this year.
Van Houten commended Philips performance, describing it as “resilient” in the face of a challenging first half due to the impact of the Covid-19 pandemic and then topping it up a stronger performance in the second half of the year.
The company also announced that it partnered with 25 hospitals across the United States, Asia and Europe in the final quarter of last year and also expanded remote “telehealth” services for consumers at home.
Philips announced in December last year that it was acquiring BuoTelemetry, a US remote cardiac monitoring firm in a deal worth $2.8 billion (2.3 billion euros).
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