By Ian Walker

 

Royal Philips NV on Monday reported a swing to a net loss for the first quarter of the year, though sales rose, beating forecasts.

The Dutch health-technology company said it is implementing extra cost measures and increasing prices to offset inflationary headwinds.

Still, it said its strong customer demand and order book, together with the first-quarter sales performance, support the targets that were guided for in January.

Philips reported a net loss attributable to shareholders of 151 million euros ($163.1 million) for the quarter, compared with a net profit of EUR39 million a year earlier.

Quarterly sales rose to EUR3.92 billion from EUR3.83 billion, beating analysts' expectations of EUR3.75 billion taken from the company's website. On a comparable basis, sales fell 4%, against a company-provided consensus estimate fall of 7.8%.

In January, Philips said it expects growth and margin expansion this year, despite short-term volatility and headwinds related to Covid-19 and supply-chain challenges. It expects to start the year with a comparable sales decline, followed by a recovery and strong second half.

For the full year, it targets 3%-5% comparable sales growth, as guided in January.

Adjusted earnings before interest, taxes and amortization--a metric that strips out exceptional and other one-off items--was EUR243 million, compared with EUR362 million a year earlier and a company-compiled consensus of EUR236 million, Philips said.

 

Write to Ian Walker at ian.walker@wsj.com

 

(END) Dow Jones Newswires

April 25, 2022 01:56 ET (05:56 GMT)

Copyright (c) 2022 Dow Jones & Company, Inc.
Koninklijke Philips NV (EU:PHIA)
Historical Stock Chart
From Jan 2023 to Feb 2023 Click Here for more Koninklijke Philips NV Charts.
Koninklijke Philips NV (EU:PHIA)
Historical Stock Chart
From Feb 2022 to Feb 2023 Click Here for more Koninklijke Philips NV Charts.