Philips increased its net profit in I quarter 7 times

Moscow. April 24. Dutch Royal Philips NV increased its net profit in the first quarter of 2017 7 times due to improved operating performance and lower financial costs. Under reporting, the company confirmed its annual forecast.

As stated in the press release by Philips, the net profit in January-March rose to 259 million Euro from 37 million Euro in the same period last year. More interesting to the market index – adjusted EBITA increased by 18.2% from EUR 374 million to 442 million euros. Philips quarterly revenues increased 3.6 percent, from 5.52 billion to 5.72 billion euros.

In 2017, Philips expects comparable sales growth of 4-6% and profitability adjusted EBITA of approximately 100 basis points. “Our forecast for 2017 remains unchanged, as we expect further improvements in operating performance and growth of comparable sales,” – are reported words Philips CEO Frans van Houten.

Comparable sales this past quarter increased by 2% and adjusted EBITA margin by 90 basis points compared to the previous quarter and 230 basis points yoy, to 7.6%.

In developed countries, revenue increased by 2% in developing countries – by 7%, mainly due to the recovery of growth in Latin America, China and India. Comparable sales in the area of medical technology grew by 3%. In may 2016, Philips conducted an IPO of the unit in the field of lighting equipment from Philips Lighting, and in February have decreased the share of participation in this business since 71,225% to 55,18%.

Comparable sales at Philips Lighting in the first quarter has not changed. Currently, Philips group continues to include the results of Philips Lighting in consolidated financial statements, but still plans to gradually sell the shares of this company in the coming years.

Capitalization of Philips since the beginning of the current year increased by 5.2%, to 28.4 billion euros, Philips Lighting – by 20.9%, to 4.2 billion euros.