Philips Delivers Strong Performance in 2024 Despite China Challenges

Philips, a global leader in health technology, has published its Annual Report 2024, highlighting a strong performance despite facing significant challenges in the Chinese market. The company's focus on innovation, operational excellence, and strategic growth initiatives has enabled it to deliver better care for more people while driving profitability and cash flow improvements.



Key financial highlights from the report include:

* Sales of EUR 18.0 billion in 2024, with comparable sales growth of 1%.
* Adjusted EBITA margin increased by 90 basis points to 11.5% of sales in 2024, driven by operational improvements and productivity measures.
* Net cash flow from operating activities was EUR 1,569 million in 2024, reflecting strong cash flow management.
* Comparable order intake increased by 1% in 2024, with a 2% increase in Q4, despite a double-digit decline in demand from China.

Philips' strategic focus on healthcare and biotech sectors, such as Diagnosis & Treatment and Connected Care, has contributed to its resilience and growth in 2024. The Diagnosis & Treatment segment recorded 1% comparable sales growth for the full year, on the back of 11% growth in 2023, and an Adjusted EBITA margin of 11.6%. The Connected Care segment recorded a 2% comparable sales increase and an Adjusted EBITA margin of 9.6% for the full year.

Philips' innovation highlights for 2024 include:

* FDA clearance of the Philips CT 5300 and Philips Spectral CT 7500 RT, featuring AI-based reconstruction software and personalized radiation therapy planning.
* Expansion of Philips' strategic collaboration with Amazon Web Services to offer an integrated diagnostics portfolio in the cloud, unifying diagnostic workflows and improving access to critical insights.
* Partnerships with Mayo Clinic, Hôpital Fondation Rothschild, and Erasmus Medical Center for advanced imaging platforms, health informatics, and ultrasound solutions and services.

Philips' strong balance sheet and cash flow management have enabled it to offer shareholders the option to receive the dividend in shares or cash. The company's focus on execution excellence, productivity savings, and strategic growth initiatives has driven its financial performance in 2024, despite challenging macroeconomic conditions and a significant decline in demand from China.

Looking ahead, Philips remains confident in its long-term plan and will continue to work closely with customers as it builds on its strong innovation pipeline and focuses on execution excellence to drive profitable growth. The company's commitment to patient safety, quality, and sustainability will remain a top priority as it continues to deliver better care for more people.

In conclusion, Philips' Annual Report 2024 demonstrates the company's ability to navigate challenging market conditions and deliver strong financial performance through a combination of innovation, operational excellence, and strategic growth initiatives. As the company continues to invest in its core businesses and expand its market reach, it is well-positioned to capitalize on emerging opportunities in the healthcare and biotech sectors.