Philips Slips To Loss In Q4, Sales Flat; Sees Weak Comparable Sales In Q1, Growth In FY25

Philips Electronics

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(RTTNews) - Dutch consumer electronics giant Koninklijke Philips N.V. (PHGFF.PK, PHG) reported Wednesday a loss in its fourth quarter, compared to prior year's profit, amid nearly flat sales.

Looking ahead, for fiscal 2025, Philips expects 1 percent-3 percent comparable sales growth, including a mid- to high-single-digit decline in China; as well as adjusted EBITA margin increasing 30-80 bps to 11.8 percent-12.3 percent.

The company anticipates comparable sales growth to be back-end-loaded in the year, with a mid-single-digit decline in first quarter mainly due to lower demand in China and royalties phasing, with correspondingly lower Adjusted EBITA margin.

The company also increased productivity savings target for 2023-2025 from 2 billion euros to 2.5 billion euros, with 800 million euros in 2025.

Further, Philips said it intends to submit to the 2025 Annual General Meeting of Shareholders a proposal to declare a dividend of 0.85 euro per share, same as last year, in shares or cash.

For the fourth quarter, the company reported net loss of 333 million euros, compared to prior year's profit of 38 million euros. Loss per share was 0.36 euro, compared to profit of 0.04 euro a year ago.

Adjusted income from continuing operations was 0.51 euro, compared to 0.40 euro in the prior year.

The latest results reflected income tax expense of 449 million euros, compared to prior year's income of 132 million euros.

Income from operations, however, climbed to 199 million euros from last year's 24 million euros. Adjusted EBITA increased 60 basis points to 13.5 percent.

Sales were 5.044 billion euros, slightly lower than last year's 5.062 billion euros. 5,044

Comparable sales growth was 1 percent with solid growth of 5 percent in the rest of the world, despite double-digit decline in China.

Comparable order intake also increased 2 percent in the quarter, with strong performance in the North America and Growth geographies, partly offset by a double-digit decline in demand in China.

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