Q3 2024 Koninklijke Philips NV Earnings Call Transcript
Key Points
- Koninklijke Philips NV (PHG) delivered a strong improvement in profitability with an adjusted EBITDA margin improvement of 160 basis points.
- The company achieved solid sales growth outside of China, particularly in North America, where diagnosis and treatment orders remained strong.
- Koninklijke Philips NV (PHG) is making significant progress on its three-year plan, focusing on growth and margin expansion opportunities.
- The company has improved its supply chain, with lead times back to normal and increased service levels.
- Koninklijke Philips NV (PHG) has launched several innovative products, including AI-powered baby monitors and FDA-approved medical devices, enhancing its market position.
- Sales were flat, and orders slightly decreased due to deteriorating demand from hospitals and consumers in China.
- The company has lowered its full-year sales outlook due to ongoing challenges in the Chinese market.
- Personal Health segment saw a 5% decrease in comparable sales, primarily due to a double-digit decline in China.
- Visibility around the impact of anticorruption measures and government programs in China remains limited, affecting hospital equipment sales.
- Free cash flow was lower than expected, at EUR22 million, due to working capital outflows and seasonal phasing.
Hi, everyone. Welcome to Philips third quarter 2024 results webcast. I'm here with our CEO, Roy Jakobs; and our CFO, Charlotte Hanneman. The press release and investor deck were published on our Investor Relations website this morning. The replay and full transcript of this webcast will be made available on the website after the call as well.
Before we start, I want to draw your attention to our safe harbor statement on screen. You will also find the statement in the presentation published on our Investor Relations website. I will now hand it over to Roy.
Thank you, Leandro. Good morning, everyone, and welcome to the call. I want to start with the key highlights of this morning's release. We delivered strong improvement in profitability in the quarter, while sales were flat, and orders slightly decreased as demand from hospitals and consumers in China further deteriorated.
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