Philips Posts Profit In Q4, Sees Growth In FY24; Agrees Respironics Consent Decree With FDA

(RTTNews) - Dutch consumer electronics giant Philips Electronics NV (PHGFF.PK, PHG) reported Monday that its fourth-quarter income from operations was 24 million euros, including charges of 363 million euros connected with the Respironics consent decree, which has been agreed with the US Department of Justice or DOJ, representing the US Food and Drug Administration.

Adjusted EBITA margin was 12.9 percent in the quarter. Adjusted EBITA margin was 12.5 percent, excluding provisions charged to sales, mainly connected with the Respironics consent decree.

Group sales amounted to 5.06 billion euros, down 1 percent on a comparable basis. Comparable sales growth excluding provisions charged to sales was 3 percent in the quarter.

Comparable order intake was down 3 percent.

Further, the company proposed to maintain dividend at 0.85 euro per share, to be distributed in shares.

Looking ahead, Philips expects to deliver 3-5 percent comparable sales growth and Adjusted EBITA margin of 11-11.5 percent in 2024. Adjusted EBITA margin was 10.6% in 2023.

Further, Philips reiterated its confidence in delivering the plan for 2023-2025, acknowledging that uncertainties remain. The company continues to expect mid-single-digit comparable sales growth, low-teens Adjusted EBITA margin, and 1.4 billion euros to 1.6 billion euros free cash flow.

It excludes the investigation by the US DOJ related to the Respironics field action and the impact of the ongoing litigation.

Regarding the consent decree focused on Philips Respironics in the US, the company said the agreement provides clarity and a roadmap to demonstrate compliance and to restore the business.

The consent decree is being finalized and will be submitted to the relevant US court for approval.