Post by : Badri Ariffin

Philips reported a modest rise in third-quarter net profit despite a small dip in overall revenue. Net income increased to €184 million from €181 million a year earlier, while basic earnings per share remained unchanged at €0.19.

Looking at adjusted measures, results were more favourable: adjusted earnings per share rose to €0.36 from €0.32, and adjusted EBITA climbed to €531 million from €516 million. The adjusted margin improved to 12.3 percent, up 50 basis points year-on-year, driven by sales momentum, a stronger product mix and ongoing productivity initiatives, partially offset by higher tariffs.

Total sales declined about 2 percent to €4.3 billion, yet comparable sales advanced 3.3 percent, signalling steady underlying demand across Philips' segments. Comparable order intake increased by 8 percent, with North America contributing significantly to the gain.

Philips reiterated its 2025 financial framework, targeting adjusted EBITA margins toward the upper end of the 11.3–11.8 percent range. The company is continuing a three-year €2.5 billion productivity programme and expects €800 million in savings for 2025. Full-year comparable sales growth is forecast at 1–3 percent, excluding the impact of ongoing Philips Respironics-related proceedings, including the US Department of Justice inquiry.

The quarter highlights Philips' focus on cost discipline amid softer top-line conditions, showing resilience in key markets despite broader challenges.

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