Philips loses 171 million until June

MADRID, 25 Jul. (EUROPA PRESS) -

The Dutch group Philips lost 171 million euros in the first half of 2022, compared to net profits of 192 million euros in the same period a year earlier, due to the negative effect of higher costs and closures in China, according to the report. company.

Sales amounted to 8,095 million euros, 0.5% more than a year earlier, and adjusted profit before taxes (Ebitda) stood at 948 million, 29% less.

Between April and June, net losses were 20 million (compared to profits of 153 million a year earlier), sales amounted to 4,177 million (-1.25%) and adjusted Ebitda was positive, 461 million (-39 ,5%).

Royal Philips CEO Frans van Houten said performance in the second quarter of the year had been affected by global challenges across the industry, including supply shortages, lockdowns in China, inflationary pressures and the war between Ukraine and Russia.

"The impact of the Covid-19 lockdowns significantly affected our business in China, where like-for-like sales and order intake fell by nearly 30% in the quarter. Production at a number of our factories, as well as those of our suppliers in China, was suspended for two months, exacerbating global supply chain and cost challenges," he said.

The company has lowered its growth forecasts for 2022 and has intensified its actions on productivity, pricing and strengthening supply chain resilience to mitigate headwinds and associated risks.

"The positive impact of these actions, coupled with the strength of our order book and improving component supply, gives me confidence that we will resume growth beginning in the third quarter, resulting in like-for-like sales growth of 6-9% and higher profitability in the second half of the year. For the full year 2022, we expect to generate a comparable sales growth of 1-3% and an adjusted Ebita margin of around 10%", said the CEO .