Philips Books Provision of 250 million euros against a defective product; First quarter net profit edged up
By Ian Walker
Koninklijke Philips NV said on Monday that it recorded a provision of 250 million euros ($ 302.5 million) in its accounts after discovering a quality problem with a component used in certain sleep and respiratory care products because it recorded a slight increase in net worth in the first quarter. profit.
Despite this disposition, the Dutch healthcare technology company raised its forecast for the year. It now expects to generate low to mid single-digit comparable sales growth for 2021, up from previously reported low single-digit growth. The company still expects to report adjusted earnings before interest, taxes and depreciation margin of 60 to 80 basis points.
Philips reported net profit attributable to shareholders of 39 million euros for the quarter ended March 31, compared to 38 million euros for the same period last year.
Quarterly sales reached 3.83 billion euros from 3.69 billion euros, exceeding analysts’ expectations of 3.72 billion euros taken from the company’s website. On a comparable basis, sales increased 9%, beating consensus estimates provided by the company by 6.3%.
Adjusted EBITA – a measure that removes one-time items and other one-off items – was € 362 million compared to € 208 million and a company-established consensus of € 326 million, Philips said.
Write to Ian Walker at [email protected]
(END) Dow Jones News Wire
April 26, 2021 01:36 ET (05:36 GMT)
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