By Anthony O. Goriainoff
Royal Philips NV said Monday that it swung to a net loss for the third quarter, missing consensus, due to operational and supply challenges, and that it was taking immediate actions to restore performance.
The Dutch health-technology company said that it saw prolonged operational and supply challenges, a worsening macro-economic environment, as well as continued uncertainty related to Covid-19 measures in China. The company said these will be partly offset by its productivity and pricing actions.
Net loss was 1.33 billion euros ($1.31 billion) compared with a net profit of EUR2.97 billion for the third quarter of 2021, and a net loss consensus of EUR838.4 million, taken from FactSet and based on three analysts’ forecasts.
Adjusted earnings before interest, taxes and amortization–a metric that strips out exceptional and other one-off items–was EUR209 million compared with EUR512 million for the third quarter of 2021. The company guided for adjusted Ebita of around EUR210 million.
Group sales in the period were EUR4.3 billion compared with EUR4.2 billion in the year prior.
Like-for-like sales were down 5%, in line with previous guidance.
Royal Philips said it now expects a mid-single-digit comparable sales decline for the fourth quarter with a high-single-to-double-digit adjusted Ebita margin range.
The company said it will take measures to manage cash and secure a EUR1 billion credit line.
Write to Anthony O. Goriainoff at [email protected]