Philips misses sales target due to delivery bottlenecks
Von Ian Walker
AMSTERDAM (Dow Jones) – Dutch health technology group Philips missed its sales target in the final quarter of last year. As the Koninklijke Philips NV announced, according to initial calculations, revenues in the fourth quarter of 2021 were around EUR 4.9 billion, around EUR 350 million below their own expectations. According to Philips, this is primarily due to delivery bottlenecks, but also to customer postponements. For the year as a whole, sales are now expected to decline on a comparable basis by 1 percent to 17.2 billion euros.
At 420 million euros, expenses in the fourth quarter are expected to be 315 million euros higher than originally expected by Philips. Adjusted EBITDA, Philips’ preferred metric, was expected to be € 650 million in the final quarter and € 2.1 billion for the full year.
The like-for-like order intake rose 4 percent in the fourth quarter, according to Philips, with double-digit growth in the areas of diagnosis and treatment. CEO Frans van Houten assured that Philips is working closely with suppliers and governments to remove the bottlenecks in the health care supply chain.
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(END) Dow Jones Newswires
January 12, 2022 02:19 ET (07:19 GMT)