Philips’ Second-Quarter Net Income Surges Over 500% To Reach $490M

By admin On يوليو 29, 2024

By
Sana Tahir
Forbes Middle East Staff
Jul 29, 2024, 13:13 PM

Philips’ Second-Quarter Net Income Surges Over 500% To Reach $490M
Philips posted a 9.3% yearly gain in its adjusted earnings before interest, taxes, and amortization (EBITA), which increased to $536.3 million in the April–June quarter of 2024. Image by Matyas Rehak/ Shutterstock.com
Dutch electronics and health giant Philips saw its second-quarter net income soar by 510.8% year-on-year to $489.5 million (€452 million) from $80.1 million in the year-ago period, thanks to higher earnings and insurance income related to the Respironics product liability claims.

Q2 results
However, according to its statement released on Monday, increased tax expenses partially offset the company’s net income.
In the second quarter of 2024, Philips reported a marginal 0.2% annual decline in sales to $4.8 billion. However, its comparable sales increased by 2% compared to last year’s quarter, driven by growth across all segments.
Philips noted mid-to-single-digit growth in its diagnosis and treatment business and smaller single-digit growth in its connected care and personal health segments.
The Dutch firm’s income from operations skyrocketed by 269.2% year-on-year to $883.5 million, fueled by increased earnings and a $582.6 million insurance income related to Respironics product liability claims.
Philips also posted a 9.3% year-on-year gain in its adjusted earnings before interest, taxes, and amortization (EBITA) to $536.3 million in the April–June quarter of 2024.
The Amsterdam-headquartered company’s restructuring and acquisition-related gains as well as other financial items resulted in a net gain of approximately $412.3 million in the second quarter, against a loss of $174.4 million for the year-ago period.
Crucial quote
“I am encouraged by our return to order intake growth this quarter, primarily driven by North America. Within a challenging macro environment we achieved strong margin improvement, supported by our productivity program, solid operational cashflow due to improved working capital management and comparable sales growth in line with our plan,” said CEO Roy Jakobs in the statement.

2024 outlook
Philips has forecasted a 3–5% growth in comparable sales for 2024, along with an 11–11.5% increase in its EBITA margin.

Additionally, the company anticipates its free cash flow to average between $975.5 million and $1.2 billion for the full year.

Share price
Philips’ stock was up 9.1% to $28.1 as of 12:57 pm KSA time Monday.

Forbes ranking
Philips ranks 864th on the Forbes 2024 Global 2000 list with an asset base of $32.8 billion as of May 17, 2024.

This story was updated at 1:16 pm KSA time Monday.

Financial ResultsTechnologyHealthcareEarnings Report
By
Sana Tahir
Forbes Middle East Staff
Sana Tahir is a news writer at Forbes Middle East. Apart from daily business news, she enjoys writing about technology, lifestyle, internet sub-cultures, and issues of social justice