Koninklijke Philips Continues To Expect 3-5% Comparable Sales Growth And Adjusted EBITA Margin Of 11-11.5%; Sees Free Cash Flow Of EUR 0.9B-1.1B
Portfolio Pulse from Benzinga Newsdesk
Koninklijke Philips (PHG) reiterates its 2025 plan, expecting 3-5% comparable sales growth and an Adjusted EBITA margin of 11-11.5% for 2024. The company now forecasts free cash flow of EUR 0.9-1.1 billion for 2024, factoring in insurance receipts for Respironics product liability claims and economic loss settlements. Payments for personal injury and medical monitoring litigation are anticipated in 2025. The outlook does not include potential impacts from ongoing Philips Respironics-related legal issues, including a US Department of Justice investigation.
April 29, 2024 | 5:22 am
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Philips maintains its 2025 financial targets, expecting 3-5% sales growth and an 11-11.5% Adjusted EBITA margin for 2024. It also anticipates a higher free cash flow of EUR 0.9-1.1 billion, including insurance receipts for Respironics claims.
The reaffirmation of Philips' financial targets and the increased free cash flow forecast for 2024 are positive signals for investors, indicating strong financial health and operational efficiency. The inclusion of insurance receipts for Respironics product liability claims as part of the free cash flow boost further alleviates concerns over potential financial burdens from these claims. However, the exclusion of potential impacts from ongoing legal proceedings, including the US Department of Justice investigation, introduces an element of uncertainty that could temper investor enthusiasm.
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