Philips Swings to Loss and Cuts Sales Guidance

Dow Jones2022-07-25

Royal Philips NV (PHIA.AE) on Monday reported a swing to a net loss for the second quarter, which it blamed on a number of issues including pandemic-related lockdowns, inflationary pressures and the Russia-Ukraine war.

Philips shares plunged 10% in premarket trading.

The Dutch health-technology company has cut its full-year comparable sales guidance to 1% to 3% from a previous forecast of 3% to 5%.

Still, the company said it expects to deliver growth and profitability improvement from second half of 2022 onward with comparable sales growth of 4%-6% by 2025.

Philips reported a net loss attributable to shareholders of 22 million euros ($22.5 million) for the quarter, compared with a net profit of EUR150 million a year earlier.

Quarterly sales fell to EUR4.18 billion from EUR4.23 billion, missing analysts' expectations of EUR4.23 billion. On a comparable basis, sales fell 7%, against a consensus estimate for a fall of 5.4%, the company said.

Adjusted earnings before interest, taxes and amortization--a metric that strips out exceptional and other one-off items--was EUR216 million, compared with EUR532 million a year earlier and consensus of EUR324 million, Philips said.

All consensus figures have been taken from the company's website.

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