News
Philips announces its first-quarter 2024 results
Forward-looking statements
This document and the related oral presentation, including responses to questions after the presentation, contain certain forward-looking statements with respect to Philips’ financial condition, results of operations and business and certain plans and objectives of Philips with respect to these items. Examples of forward-looking statements include statements made about our strategy, sales growth estimates, future Adjusted EBITA*), future restructuring and acquisition-related charges and other costs, future developments in Philips’ organic businesses and the completion of acquisitions and divestitures. Forward-looking statements can generally be identified as those containing words such as “anticipates”, “assumes”, “believes”, “estimates”, “expects”, “should”, “will”, “will likely result”, “forecast”, “outlook”, “projects”, “may” or similar expressions. By their nature, these statements involve risk and uncertainty because they relate to future events and circumstances and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these statements.
These factors include, but are not limited to: Philips’ ability to achieve leadership in healthcare informatics in response to developments in the healthcare technology industry; Philips’ ability to keep pace with the changing healthcare technology environment; macroeconomic and geopolitical changes; integration of acquisitions and their delivery into business plans and value creation expectations; protection and maintenance of Philips’ intellectual property rights and unauthorized use of third party intellectual property rights; Philips’ ability to meet expectations with respect to ESG-related matters; failure of products and services to meet quality or safety standards, negatively impacting patient safety and customer operations; cybersecurity breaches; challenges in streamlining our organization and ways of working; the resilience of our supply chain; attracting and retaining people; challenges in driving operational excellence and speed in bringing innovations to market; compliance with regulations and standards, including quality, product safety and (cyber) security; compliance with business conduct rules and regulations, including privacy and upcoming ESG disclosure and due diligence requirements; treasury and financing risks; tax risks; reliability of internal controls, financial reporting and management processes; global inflation. As a result, Philips’ actual future results may differ materially from the plans, targets and expectations set forth in such forward-looking statements. For a discussion of factors that could cause future results to differ from such forward-looking statements, see also the Risk Management chapter included in the Annual Report 2023.
Third-party market share data
Statements regarding market share contained in this document, including those regarding Philips’ competitive position, are based on external sources, such as specialized research institutes, industry and dealer panels, in combination with management estimates. When information is not already available to Philips, market share statements may also be based on estimates and projections prepared by management and/or based on external sources of information. Management’s rating estimates are based on order intake or sales, depending on the business.
Market Abuse Regulation
This press release contains inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation. This press release was distributed at 07:00 CET on April 29, 2024.
Use of non-IFRS information
In presenting and discussing the financial position, results of operations and cash flows of the Philips Group, management uses certain non-IFRS financial measures. These non-IFRS financial measures should not be viewed in isolation as alternatives to the equivalent IFRS measure and should be used in conjunction with the most directly comparable IFRS measures. Non-IFRS financial measures do not have a standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers. A reconciliation of these non-IFRS measures to the most directly comparable IFRS measures is contained in this document. Further information on non-IFRS measures can be found in Annual Report 2023.
Presentation
All values are in millions of euros unless otherwise stated. Due to rounding, values may not add up precisely to the totals provided. All reported data is unaudited. The financial reports are in accordance with the accounting policies as stated in the Annual Report 2023. Prior period amounts have been reclassified to conform to current period presentation; this includes immaterial organizational changes.
Starting in Q1 2024, Philips has revised the order entry policy to reflect the full contract value for software contracts that begin generating revenue within an 18-month horizon, rather than just the next 18 months for the revenue horizon. This change was implemented to better align with the specific business model of our software business, simplify the order entry process, and better align with peers. Comparable order entry percentages from the previous period have been reworked accordingly. This review did not result in any material changes to the order entry percentages for the periods presented.
Philips has realigned the composition of its reporting segments effective April 1, 2023. The most notable change is the move of the previous Enterprise Diagnostics Informatics business from the Diagnostics and Treatment segment to the Connected Care segment. This business, together with other IT solutions in the Connected Care segment, now form the Enterprise Informatics business. Therefore, the comparative numbers of the affected segments were restated. The reformulation was published on the Philips Investor Relations website and can be accessed here.
Per share calculations have been adjusted retrospectively for all periods presented to reflect the issuance of shares in the second quarter of 2023 in connection with the 2022 share dividend.