Philips maakt cijfers tweede kwartaal 2021 bekend

Kerncijfers tweede kwartaal

• De omzet van de Group steeg naar EUR 4,2 miljard, met een vergelijkbare omzetgroei van 9%.
• De vergelijkbare orderontvangst daalde met 15%, met een sterke dubbelcijferige groei bij de Diagnosis & Treatment-activiteiten en een daling bij de Connected Care-activiteiten als gevolg van COVID-19-gerelateerde groei van 167% in het tweede kwartaal van 2020.
• Het resultaat uit doorlopende activiteiten daalde tot EUR 65 miljoen als gevolg van een voorziening van EUR 250 miljoen vanwege maatregelen om een kwaliteitsprobleem rond een component op te lossen. Het resultaat uit doorlopende activiteiten bedroeg EUR 195 miljoen in het tweede kwartaal van 2020.
• De gecorrigeerde EBITA steeg tot EUR 532 miljoen, of 12,6% van de omzet, vergeleken met EUR 390 miljoen, of 9,8% van de omzet, in het tweede kwartaal van 2020.
• De operationele kasstroom bedroeg EUR 332 miljoen, vergeleken met EUR 446 miljoen in het tweede kwartaal van 2020.
• De vrije kasstroom bedroeg EUR 167 miljoen, vergeleken met EUR 212 miljoen in het tweede kwartaal van 2020.
   

Frans van Houten, CEO:

“We hebben de nodige middelen ingezet om het probleem met de kwaliteit van een component in een deel van onze slaap- en ademhalingsproducten op te lossen. We begrijpen volledig welke impact dit heeft op patiënten, aangezien hun welzijn de basis is van alles wat we bij Philips doen. We zijn in gesprek met de desbetreffende regelgevende instanties om toestemming te krijgen voor het inzetten van de reparatiesets en vervangende apparaten die we produceren.

Het goede prestatiemomentum in al onze activiteiten doet mij deugd, uitgezonderd bij de Sleep & Respiratory Care-activiteit, aangezien wij in het kwartaal een sterke vergelijkbare omzetgroei van 9% en een verbetering van de winstgevendheid van 280 basispunten voor de Group realiseerden. Ik put met name moed uit de groei van de orderontvangst met 29% bij onze Diagnosis & Treatment-activiteiten, evenals de sterke groei van onze Personal Health-activiteiten.

In het kwartaal hebben wij zeer interessante nieuwe producten op de markt gebracht, zoals de nieuwe Spectral CT 7500 om de karakterisering van ziektebeelden te helpen verbeteren en het aantal hernieuwde scans en follow-ups te verminderen. De integratie van BioTelemetry en Capsule Technologies verloopt voorspoedig en onze klanten waarderen de uitgebreide portfolio van end-to-end oplossingen voor het beheer van de hele patiëntenzorg van het ziekenhuis tot thuis. We zijn 12 nieuwe strategische partnerschappen voor de lange termijn aangegaan, voortbouwend op de kracht van onze portfolio en het bewijs van het vertrouwen dat ziekenhuisdirecties hebben in ons vermogen om de gezondheidsresultaten te verbeteren en de zorgkosten te verlagen, terwijl we tegelijkertijd zorgen voor een betere ervaring van patiënten en personeel.

Vol vertrouwen in onze strategie en ons financiële traject lanceren we een nieuw programma van EUR 1,5 miljard voor het terugkopen van aandelen dat in lijn is met ons evenwichtige kapitaalallocatiebeleid.

Vooruitkijkend zien we nog steeds de onzekerheid rond de impact van COVID-19 over de hele wereld en de tekorten aan elektronische componenten, maar tegelijkertijd blijven onze financiële vooruitzichten binnen onze verwachtingen, met een lage tot middelgrote ééncijferige omzetgroei en een verbetering van de gecorrigeerde EBITA-marge van 60 basispunten voor de Group in 2021.”

Business segment performance

The Diagnosis & Treatment businesses recorded 16% comparable sales growth, with double-digit growth in all businesses. Comparable order intake increased 29%, with strong double-digit growth in Image-Guided Therapy, Ultrasound and Diagnostic Imaging. The Adjusted EBITA margin increased to 13.2%, mainly driven by sales growth and productivity measures.
 
Comparable sales in the Connected Care businesses decreased 16%, as mid-single-digit growth in Hospital Patient Monitoring was more than offset by a double-digit decline in Sleep & Respiratory Care. Comparable order intake decreased significantly following the steep COVID-19-related increase in Q2 2020. The Hospital Patient Monitoring business continues to perform well above 2019 levels. The newly acquired BioTelemetry and Capsule Technologies businesses continue to deliver strong sales growth with increasing profitability. The Adjusted EBITA margin amounted to 11.3%, mainly due to the impact in the Sleep & Respiratory Care business.

The Personal Health businesses recorded a strong comparable sales growth of 33%, driven by double-digit growth across all businesses. The Adjusted EBITA margin increased to 17.0%, mainly driven by sales growth and productivity measures, partly offset by investments in advertising & promotion.

Philips’ ongoing focus on innovation and partnerships resulted in the following highlights in the quarter:

• In China, Philips signed a contract with Gansu Provincial Maternity and Child Care Hospital to streamline and advance the delivery of critical care across multiple departments of the hospital. Philips will provide its advanced critical care information system, patient monitoring solutions and diagnostic cardiology solutions.
• Building on their successful cooperation in MR-guided adaptive radiation therapy, Philips and Elekta deepened the partnership to advance personalized cancer care through precision oncology solutions to deliver more precise therapy, shorter treatment times, and lower cost of care.
• Philips introduced the Spectral CT 7500 system, which delivers high-quality spectral images for a broad patient base, including cardiac, pediatric and bariatric patients, further expanding the company’s comprehensive CT portfolio, which comprises spectral and conventional CT systems, as well as radiation oncology CT systems, and advanced informatics and services.
• Philips launched IntraSight Mobile, which offers users in hospitals and office-based labs the integration, flexibility and affordability of a single mobile system for intravascular imaging, physiology measurements and co-registration for seamless workflows and enhanced patient care. Building on the success of IntraSight, the launch will further reinforce Philips’ leading position in image- guided therapy.
• Philips announced progress on several clinical studies including the positive two-year clinical study results for the Tack Endovascular System for dissection repair, the first patient enrollment in the DEFINE GPS multicenter study to further drive the adoption of iFR for percutaneous coronary interventions based on clinical evidence, and the start of the WE-TRUST multicenter stroke study to shorten treatment times by identifying, planning and treating ischemic stroke patients in the interventional suite. Moreover, Philips announced the first structural heart repair procedure at Mayo Clinic using its new 3D intracardiac echocardiography catheter VeriSight Pro.
• Philips introduced its integrated Interventional Hemodynamic System with the portable Patient Monitor IntelliVue X3, providing advanced vital signs measurements at the tableside in the interventional suite and continuous monitoring across care settings. Uninterrupted patient monitoring can help to improve clinical decision making and timely detection of potential adverse events at every stage.
• The global launch of Philips’ most advanced electric toothbrush, the Sonicare 9900 Prestige, was well received, with an average 4.7 (out of 5) star rating by consumers. The premium electric toothbrush leverages AI to optimize the user’s brushing technique, ensuring full coverage of their teeth, and instills brushing habits that improve oral health.
• Expanding the company’s leading male grooming portfolio, Philips introduced the Shaver Series 9000 with SkinIQ technology in China. The premium shaver leverages AI and sensors to offer a personalized shave tailored to each unique skin and hair type. It will also be launched in North America and Europe in the second half of the year.

Cost savings

In the second quarter, productivity savings amounted to EUR 90 million, of which procurement savings amounting to EUR 44 million, and savings of EUR 46 million delivered by overhead and other programs.

Capital allocation

Today, Philips is announcing a new share buyback program for capital reduction purposes for an amount of up to EUR 1.5 billion. At the current share price, the program represents a total of approximately 36.8 million shares, or 4% of total shares outstanding. Philips expects to start the program in the third quarter of 2021 and to complete it within three years. It is expected that the program will be executed through a number of forward purchase transactions with one or more financial institutions and/or open market purchases by an intermediary to allow for transactions during both open and closed periods in accordance with the EU Market Abuse Regulation. Updates on the progress of the program and further details will be made available here, and through press releases as appropriate.
 
Under Philips’ ongoing EUR 1.5 billion share buyback program for capital reduction purposes, which was initiated in the first quarter of 2019, Philips repurchased shares in the open market and entered into a number of forward transactions. Philips had 2,500,000 shares delivered in June 2021 as part of the program, and under the currently outstanding forward contracts the company expects to have another 17,976,023 shares delivered in the remainder of 2021. These shares will be cancelled by December 31, 2021, resulting in an estimated total number of issued shares of 897 million by that date, compared to 917 million shares at the end of Q2 2021. Further details can be found here.

Domestic Appliances

On March 25, 2021, Philips announced that it had signed an agreement to sell its Domestic Appliances business to global investment   firm Hillhouse Capital. As planned, on July 1, 2021 the Domestic Appliances business became a stand-alone entity and the sale is on track for completion in the third quarter of 2021. Since the first quarter of 2021, the Domestic Appliances business (which was previously part of the Personal Health segment) is reported as a discontinued operation. Philips will continue to consolidate Domestic Appliances under International Financial Reporting Standards (IFRS) until the sale is completed.

Regulatory update

On June 14, 2021 Philips initiated a voluntary recall notification in the US/field safety notice outside the US for certain sleep and respiratory care products to address identified potential health risks related to the polyester-based polyurethane (PE-PUR) sound abatement foam in these devices.

Philips has established dedicated call centers and a device registration process to support patients. The company is increasing its production, service and repair capacity and has requested the relevant regulatory clearances for the repair and replacement actions. Subject to these regulatory clearances, Philips is ready to start deploying the repair kits and replacement devices that it is producing. Given the estimated scope of the field actions on the installed base, Philips has taken a provision of EUR 250 million in the second quarter of 2021, in addition to the provision that the company recorded in the first quarter of 2021.

Report

Second-Quarter Results 2021 - Report

Presentation

Second-Quarter Results 2021 - Results Presentation

Conference call and audio webcast

A conference call with Frans van Houten, CEO, and Abhijit Bhattacharya, CFO, to discuss the results will start at 10:00AM CET, July 26, 2021. A live audio webcast of the conference call will be available through the link below.

Q2 2021 – Second quarter 2021 results conference call audio webcast

More information about Frans van Houten and Abhijit Bhattacharya

Click here for Mr. van Houten's CV and images

Click here for Mr. Bhattacharya's CV and images

Visit our interactive results hub for more on our financial and sustainability performance over the past quarter, including the latest version of our dynamic Lives Improved world map.