Philips Forecasts 2025 Sales Growth of 1%-3% Despite China Challenges

Royal Philips, a global leader in health technology, has announced its outlook for 2025, projecting comparable sales growth of 1% to 3%. Despite facing double-digit declines in demand in both consumer and health systems in China, the company remains confident in its long-term plan and continues to focus on execution excellence to drive profitable growth. Philips' strong balance sheet and commitment to shareholder value are reflected in its proposed dividend option, offering shareholders the choice to receive the dividend in shares or cash.



Philips' strategic focus on innovation and operational improvements has significantly contributed to its financial performance. The company's commitment to bringing industry-leading innovations to the market, such as the AI-based reconstruction software for its CT 5300 and Spectral CT 7500 RT, enables it to maintain a competitive edge and drive sales growth. Additionally, Philips' focus on enhancing execution, improving end-to-end supply chain resilience, and increasing agility and productivity through simplifying its operating model has led to strong margin improvement and solid operational cash flow.



Philips' ability to adapt its business model and risk management strategies has ensured resilience and continued growth in the face of uncertainty in the global macroeconomic environment. The company's simplified and more agile operating model, productivity program, innovation and technology investments, diversification and regionalization, and improved working capital management have all contributed to its success. Despite the challenges posed by the uncertain global macroeconomic environment, Philips has maintained strong performance in North America, which contributed to the 9% increase in comparable order intake in the second quarter of 2024.

Looking ahead, Philips remains focused on executing its value creation plan, bringing industry-leading innovations to the market, and driving a simplified, more agile operating model. The company's commitment to patient safety and quality, as well as its strong innovation pipeline, will be crucial in achieving its 2025 sales growth targets. Philips' strategic collaborations with Amazon Web Services, Mayo Clinic, Hôpital Fondation Rothschild, and Erasmus Medical Center, among others, showcase its commitment to driving growth through innovation and partnerships.

In conclusion, Philips' revised sales growth outlook for 2025 reflects the company's ability to adapt to challenges and maintain a strong focus on innovation and operational improvements. Despite the uncertainty in the global macroeconomic environment, Philips' commitment to execution excellence, patient safety, and quality will be vital in achieving its long-term growth prospects.