Philips 1Q comparable sales down 4%
By Ian Walker
Royal Philips NV on Monday reported a shift to a net loss for the first quarter of the year, although sales increased, beating forecasts.
The Dutch health-tech company said it was implementing additional cost measures and raising prices to offset inflationary headwinds.
Still, he said his strong customer demand and backlog, along with first-quarter sales performance, support the targets set in January.
Philips posted a net loss attributable to shareholders of 151 million euros ($163.1 million) for the quarter, compared with net profit of 39 million euros a year earlier.
Quarterly sales reached 3.92 billion euros from 3.83 billion euros, beating analysts’ expectations of 3.75 billion euros taken from the company’s website. On a comparable basis, sales fell 4%, compared to a consensus estimate of 7.8% provided by the company.
In January, Philips said it expected growth and margin expansion this year, despite short-term volatility and headwinds from Covid-19 and supply chain challenges. He expects to start the year with a comparable sales decline, followed by a recovery and a strong second half.
For the full year, it is targeting comparable sales growth of 3% to 5%, as expected in January.
Adjusted earnings before interest, tax, depreciation and amortization – a measure that excludes exceptional and other one-time items – was 243 million euros, compared to 362 million euros a year earlier and a consensus established by the company of 236 million euros, said Philips.
Write to Ian Walker at ian.walker@wsj.com