Royal Philips NV reported profit that beat analysts’ estimates and said the lingering impact of the coronavirus and changes in the way health-care is delivered will boost demand for its medical gear in coming years.
- The Dutch maker of diagnostic gear and toothbrushes reported a 32% jump in earnings before interest, taxes and amortization to 769 million euros ($900 million) in the third quarter, it said Monday. That beat an average estimate of 630.6 million euros.
- Having got a Covid-19 boost from heightened demand for its ventilators, Philips predicted an acceleration in average annual sales growth to 5% to 6% from 20212025, driven by demand for monitors as well as equipment to enable medical staff to care for patients at home.
- While the focus remains on acute pandemic care, hospitals are now pushing ahead with surgery and other medical procedures that were put on hold, Chief Executive Officer Frans van Houten said in a Bloomberg interview.
- Van Houten still expects a “modest” gain in sales growth in 2020, although the order book remains solid. Next year, growth is expected to be in the low-single-digits, driven by Diagnosis & Treatment and Personal Health, partly offset by lower Connected Care sales.
- Philips invested more than 100 million euros on quadrupling ventilator production in just five months amid an ongoing battle to save hospitalized sufferers of the coronavirus.
- For Philips’ earnings release clickhere.
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