Dutch consumer electronics giant Royal Philips released its second quarter performance report before the market opened on Monday, revealing its solid financial condition and growth potential. Despite a slight drop in revenue from 4.47 billion euros to 4.462 billion euros compared to the same period last year, comparable sales increased by 2%, and comparable order volume increased significantly by 9%. Behind this achievement, the soaring net profit is particularly noteworthy, skyrocketing from 74 million euros last year to 0.452 billion euros, an increase of 5.1 times year-on-year; EPS was 0.48 euros, higher than 0.07 euros in the same period last year. In adjusted financial indicators, Philips also delivered impressive results. The adjusted earnings per share of continuing operations reached 0.33 euros, up from 0.27 euros in the same period last year. The adjusted EBITA profit margin also rose from 10.1% to 11.1% last year, demonstrating a comprehensive improvement in all business sectors of the group. It is worth mentioning that Philips' adjusted EBITA profit before interest and taxes reached 0.495 billion euros, far exceeding the market expectation of 0.4263 billion euros. Thanks to the 0.538 billion euros of insurance income associated with the recall of respiratory sleep apnea, this achievement increased this quarter's revenue to 0.816 billion euros. Although free cash outflow was 64 million euros, this number was partially offset by the 0.15 billion euros initially received by the insurance company, considering the 0.415 billion euros payment related to the settlement with Respironics in the United States. Looking ahead, Philips is still optimistic about the 2024 fiscal year, expecting comparable sales to increase by 3% to 5%, adjusted EBITA profit margin to reach 11% to 11.5%, and free cash flow to increase to 0.9 billion euros to 1.1 billion euros. The company is confident in achieving its 2025 plan, although it admits there is some uncertainty. In the recent performance report, Roy Jacobson, CEO of Philips, expressed optimism about the company's development: "This quarter, we witnessed a positive rebound in order volume, which was mainly due to strong demand in the North American market. In the current challenging macroeconomic environment, we not only achieved a significant improvement in profitability, but also achieved stable operating cash flow and comparable sales growth that met our expectations through continuous improvements in productivity planning and working capital management." Jacobson further emphasized the driving factors of the company's performance improvement: "Our performance improvement is due to our relentless efforts in executing key strategic and driving industry-leading innovation. A clear example is our next-generation cardiovascular ultrasound platform, whose AI tool has been approved by the US Food and Drug Administration, which not only improves automation, but also greatly improves productivity." It is reported that at the end of April, Philips reached a settlement in the US for the claim related to sleep apnea device failure, which was lower than the market expectation, bringing hope to investors, and some investors rekindled their trust in this long-standing manufacturer. Immediately afterwards, Philips' two major shareholders, Exor NV and Artisan Partners GP LLC, increased their holdings in the company last month, further enhancing market confidence in Philips. Two years ago, Philips initiated a recall of sleep apnea products due to concerns about its noise-canceling foam disintegration potentially bringing health risks. The US Food and Drug Administration classified this issue as a Class I problem, the most serious level, highlighting the urgency and severity of the matter. It is estimated that this product recall cost Philips as much as $5 billion. Although Philips is still under investigation by the US Department of Justice, the company has not made any financial arrangements for this incident, indicating a cautious attitude in dealing with this crisis. In the capital market, Philips' performance also reflects its gradual recovery. Although the company's stock price has fallen 45% since the recall news was announced in June 2021, it has risen by about 16% so far this year. This positive market response not only affirms Philips' ability to respond to crises but also acknowledges its future development potential. Although the road to Philips' recovery is full of challenges, the second quarter performance report undoubtedly injected a shot in the arm into the market. With the company's gradual recovery and adjustment in global markets, as well as its continued focus on product quality and safety, Philips is expected to achieve more stable growth in the future.$Royal Philips (PHG.US)$Please use your Futubull account to access the feature.

global electronics giant Royal Philips released its second quarter performance report before the market opened on Monday, revealing its solid financial condition and growth potential. Despite a slight drop in revenue from 4.47 billion euros to 4.462 billion euros compared to the same period last year, comparable sales increased by 2%, and comparable order volume increased significantly by 9%. Behind this achievement, the soaring net profit is particularly noteworthy, skyrocketing from 74 million euros last year to 0.452 billion euros, an increase of 5.1 times year-on-year; EPS was 0.48 euros, higher than 0.07 euros in the same period last year. In adjusted financial indicators, Philips also delivered impressive results. The adjusted earnings per share of continuing operations reached 0.33 euros, up from 0.27 euros in the same period last year. The adjusted EBITA profit margin also rose from 10.1% to 11.1% last year, demonstrating a comprehensive improvement in all business sectors of the group. It is worth mentioning that Philips' adjusted EBITA profit before interest and taxes reached 0.495 billion euros, far exceeding the market expectation of 0.4263 billion euros. Thanks to the 0.538 billion euros of insurance income associated with the recall of respiratory sleep apnea, this achievement increased this quarter's revenue to 0.816 billion euros. Although free cash outflow was 64 million euros, this number was partially offset by the 0.15 billion euros initially received by the insurance company, considering the 0.415 billion euros payment related to the settlement with Respironics in the United States. Looking ahead, Philips is still optimistic about the 2024 fiscal year, expecting comparable sales to increase by 3% to 5%, adjusted EBITA profit margin to reach 11% to 11.5%, and free cash flow to increase to 0.9 billion euros to 1.1 billion euros. The company is confident in achieving its 2025 plan, although it admits there is some uncertainty. In the recent performance report, Roy Jacobson, CEO of Philips, expressed optimism about the company's development: "This quarter, we witnessed a positive rebound in order volume, which was mainly due to strong demand in the North American market. In the current challenging macroeconomic environment, we not only achieved a significant improvement in profitability, but also achieved stable operating cash flow and comparable sales growth that met our expectations through continuous improvements in productivity planning and working capital management." Jacobson further emphasized the driving factors of the company's performance improvement: "Our performance improvement is due to our relentless efforts in executing key strategic and driving industry-leading innovation. A clear example is our next-generation cardiovascular ultrasound platform, whose AI tool has been approved by the US Food and Drug Administration, which not only improves automation, but also greatly improves productivity." It is reported that at the end of April, Philips reached a settlement in the US for the claim related to sleep apnea device failure, which was lower than the market expectation, bringing hope to investors, and some investors rekindled their trust in this long-standing manufacturer. Immediately afterwards, Philips' two major shareholders, Exor NV and Artisan Partners GP LLC, increased their holdings in the company last month, further enhancing market confidence in Philips. Two years ago, Philips initiated a recall of sleep apnea products due to concerns about its noise-canceling foam disintegration potentially bringing health risks. The US Food and Drug Administration classified this issue as a Class I problem, the most serious level, highlighting the urgency and severity of the matter. It is estimated that this product recall cost Philips as much as $5 billion. Although Philips is still under investigation by the US Department of Justice, the company has not made any financial arrangements for this incident, indicating a cautious attitude in dealing with this crisis. In the capital market, Philips' performance also reflects its gradual recovery. Although the company's stock price has fallen 45% since the recall news was announced in June 2021, it has risen by about 16% so far this year. This positive market response not only affirms Philips' ability to respond to crises but also acknowledges its future development potential. Although the road to Philips' recovery is full of challenges, the second quarter performance report undoubtedly injected a shot in the arm into the market. With the company's gradual recovery and adjustment in global markets, as well as its continued focus on product quality and safety, Philips is expected to achieve more stable growth in the future.

It is particularly worth mentioning that Philips' adjusted EBITA profit before interest and taxes reached 0.495 billion euros, far exceeding the market expectation of 0.4263 billion euros. This achievement was partly due to the 0.538 billion euros of insurance income associated with the recall of respiratory sleep apnea, which increased this quarter's revenue to 0.816 billion euros. Although free cash outflow was 64 million euros, this number was partially offset by the 0.15 billion euros initially received by the insurance company because of considering the 0.415 billion euros payment related to the settlement with Respironics in the United States.

Looking ahead, Philips is still optimistic about the 2024 fiscal year, expecting comparable sales to increase by 3% to 5%, adjusted EBITA profit margin to reach 11% to 11.5%, and free cash flow to increase to 0.9 billion euros to 1.1 billion euros. The company is confident in achieving its 2025 plan, although it admits there is some uncertainty.

Philips' CEO Roy Jacobson expressed confidence in the company's development trend in a recent performance report: "This quarter, we have witnessed a positive rebound in order volume, which was mainly due to strong demand in the North American market. In the current challenging macroeconomic environment, we not only achieved a significant improvement in profitability but also achieved the stable operating cash flow and comparable sales growth that met our expectations through continuous improvements in productivity planning and current asset management." Jacobson further emphasized the driving factors in the company's performance improvement: "Our performance improvement benefits from our relentless efforts in executing key strategies and driving leading innovation in the industry. A clear example is our next-generation cardiovascular ultrasound platform, whose AI tool has been approved by the US FDA, which not only improves automation but also greatly improves productivity."

Jacobson further emphasized: "Our performance improvement benefits from our relentless efforts in executing key strategies and driving leading innovation in the industry.,

It is reported that at the end of April, Philips reached a settlement in the US for the claim related to sleep apnea device failure, which was lower than the market expectation, bringing hope to investors, and some investors rekindled their trust in this long-standing manufacturer. Immediately afterwards, Philips' two major shareholders, Exor NV and Artisan Partners GP LLC, increased their holdings in the company last month, further enhancing market confidence in Philips.

Looking back two years ago, Philips initiated a recall of sleep apnea products due to concerns about its noise-canceling foam disintegration potentially bringing health risks. The US Food and Drug Administration classified this issue as a Class I problem, the most serious level, highlighting the urgency and severity of the matter.

It is estimated that this product recall cost Philips as much as $5 billion. Although Philips is still under investigation by the US Department of Justice, the company has not made any financial arrangements for this incident, indicating a cautious attitude in dealing with this crisis.

In the capital market, Philips' performance also reflects its gradual recovery. Although the company's stock price has fallen 45% since the recall news was announced in June 2021, it has risen by about 16% so far this year. This positive market response not only affirms Philips' ability to respond to crises but also acknowledges its future development potential.

Although the road to Philips' recovery is full of challenges, the second quarter performance report undoubtedly injected a shot in the arm into the market. With the company's gradual recovery and adjustment in global markets, as well as continued focus on product quality and safety, Philips is expected to achieve more stable growth in the future.