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Dec 31, 2024
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Philips Q4 2024 Earnings Report
Philips reported stable revenue with improved profitability and strong cash flow in Q4 2024.
Key Takeaways
Philips saw a slight increase in comparable sales, driven by strong performance in Connected Care despite a significant decline in China. The company improved profitability with a higher Adjusted EBITA margin and increased free cash flow. However, net income declined due to higher tax expenses.
Comparable sales grew 1%, offset by a double-digit decline in China.
Adjusted EBITA margin improved to 13.5%, driven by operational improvements.
Free cash flow increased to EUR 1.285 billion.
Net income declined to EUR -333 million due to higher tax expenses.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Philips expects modest growth in 2025 with ongoing macroeconomic challenges, particularly in China. The company projects improved profitability driven by cost efficiencies and productivity initiatives.
Positive Outlook
- Expected 1%-3% comparable sales growth in 2025.
- Adjusted EBITA margin projected to rise by 30-80 bps.
- Continued cost savings with a raised productivity target of EUR 2.5 billion.
- Expansion of AI-powered diagnostic solutions in collaboration with partners.
- Dividend maintained at EUR 0.85 per share, payable in cash or shares.
Challenges Ahead
- Mid-to-high single-digit sales decline expected in China.
- Respironics-related legal proceedings still ongoing.
- Headwinds from US-China tariffs and geopolitical tensions.
- Higher tax liabilities expected to impact net income.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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