From GlobeNewswire: 2025-02-19 01:00:00

In 2024, Royal Philips reported sales of EUR 18 billion with 1% growth, and EUR 5 billion in Q4 with 1% growth despite a double-digit decline in China. Order intake increased by 1% for the year and 2% in Q4, while income from operations was EUR 529 million in 2024. Adjusted EBITA margin rose to 11.5% for the year and 13.5% in Q4. The company also finalized settlements related to the Respironics recall in the US and proposed a dividend of EUR 0.85 per share.

Despite challenges in China, Royal Philips saw positive order growth and margin expansion in 2024. The company’s focus on profitability and cash flow paid off, with an increased productivity savings target for 2023-2025. Sales growth was strong in North America and Growth geographies, offsetting the decline in China. Adjusted EBITA margin increased to 13.5% in Q4, with free cash flow reaching EUR 1.3 billion.

In terms of segment performance, Diagnosis & Treatment saw a 1% sales decline due to China, while Connected Care had a 7% sales increase in Q4. Personal Health experienced a 2% sales decline in Q4 due to China. Philips also highlighted innovations such as AI-based reconstruction software for CT scans and strategic collaborations with Amazon Web Services and Mayo Clinic.

Philips continues to strengthen its leadership and culture, with a focus on patient safety and quality. Productivity initiatives delivered EUR 163 million in savings in Q4, ahead of plan. The company raised its productivity savings target for 2023-2025 to EUR 2.5 billion. Looking ahead, Philips expects 1%-3% sales growth in 2025, with an increase in Adjusted EBITA margin. Free cash flow is expected to be EUR 0.4 billion to EUR 0.6 billion, excluding settlement payments related to the Respironics recall.



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