FX.co ★ Philips Q2 Profit Surges, Sales Flat; Maintains FY24 Outlook

Dutch consumer electronics leader Koninklijke Philips N.V. (PHGFF.PK, PHG) announced on Monday a significant rise in its second-quarter net income, reaching 452 million euros, a substantial increase from the previous year's 74 million euros.

Earnings per share climbed to 0.48 euros, compared to 0.07 euros in the same quarter last year. Income from continuing operations per share stood at 0.33 euros for the recent quarter. Additionally, adjusted income from continuing operations was 0.30 euros, up from 0.27 euros a year earlier.

The group's adjusted EBITA margin improved to 11.1 percent from last year's 10.1 percent, reflecting progress across all business segments.

Total group sales were reported at 4.462 billion euros, nearly level with last year's 4.470 billion euros. However, comparable sales grew by 2 percent, and comparable order intake rose by 9 percent.

For fiscal year 2024, Philips maintains its forecast of 3 percent to 5 percent comparable sales growth, an adjusted EBITA margin ranging between 11 percent and 11.5 percent, and free cash flow between 0.9 billion euros and 1.1 billion euros.

The company also reaffirmed its commitment to achieving its 2025 plan, despite acknowledging ongoing uncertainties.

This outlook does not consider the potential ramifications of the ongoing legal proceedings related to Philips Respironics, including the investigation by the US Department of Justice.