Philips Achieves Strong Q3 Sales Growth Despite Lower Order Intake, Boosts FY23 Outlook
Portfolio Pulse from Lekha Gupta
Koninklijke Philips NV (NYSE:PHG) reported a Q3 FY23 comparable sales growth of 11% Y/Y to €4.5 billion ($4.87 billion), driven by growth across all segments and geographies. However, the company's order intake declined 9% Y/Y due to tough comparison with 2021, weak orders in China, and longer order lead times. Philips has also reduced its workforce by approximately 7,500 roles out of the planned reduction of 10,000 positions by 2025. The company raised its FY23 outlook for comparable sales growth to 6%-7% and an adjusted EBITA margin to 10%-11%.
October 23, 2023 | 11:27 am
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Philips reported strong Q3 sales growth but saw a decline in order intake. The company also raised its FY23 outlook.
The strong sales growth and raised outlook are positive signs for Philips, which could lead to a potential increase in the stock price. However, the decline in order intake and workforce reduction could be concerning for investors, potentially limiting the stock's upside.
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