#Philips #performance #impacted #operational #supply
October 24, 2022
Highlights
- Group sales amounted to EUR 4.3 billion, with a 5% comparable sales decline, in line with the update provided on October 12, 2022
- Comparable order intake decreased 6% on the back of 47% growth in Q3 2021
- Income from operations amounted to a loss of EUR 1.5 billion, mainly due to the previously disclosed EUR 1.5 billion non-cash goodwill and R&D impairment, compared to an income of EUR 358 million in Q3 2021
- Adjusted EBITA of EUR 209 million, or 4.8% of sales, compared to EUR 512 million, or 12.3% of sales, in Q3 2021
- Immediate restructuring actions initiated, with approximately EUR 300 million charges expected in the coming quarters
- Operating cash flow was an outflow of EUR 180 million, compared to an inflow of EUR 256 million in Q3 2021
- Roy Jakobs appointed as President and CEO of Royal Philips per October 15, 2022
Roy Jakobs, CEO of Royal Philips:
“I am honored to have been given the responsibility to lead Philips, a great company with a strong brand, leading product portfolio, strong customer base and talented employees. However, we face multiple challenges and our Q3 2022 performance reflects this. Although Philips’ strategy and solutions resonate with our stakeholders, we have not lived up to their expectations in recent years.
My immediate priority is therefore to improve execution so that we can start rebuilding the trust of patients, consumers and customers, as well as shareholders and our other stakeholders. We will do this by first further strengthening our patient safety and quality management and addressing the various facets of the Philips Respironics recall; second, by urgently improving our supply chain operations so that we can deliver on our strong order book and improve performance; and third, by simplifying our way of working to improve productivity and increase agility. This includes the difficult, but necessary decision to immediately reduce our workforce by around 4,000 roles globally, which we do…
Read on GNW: Philips’ Q3 performance impacted by operational and supply
