Royal Philips (NYSE:PHG)provides an update on Q4 and FY 2021 financial results.
Group sales for the quarter are expected to be ~€4.9B, around €350M lower than earlier expectations. The decrease is mainly due to intensified global supply chain shortages, as well as the postponement of customer equipment installations.
The comparable sales decline was ~10%, mainly due to the effects and the impact of the Philips Respironics recall.
Group sales for FY 2021 are now expected to be ~€17.2B, resulting in an expected Group comparable sales decline of ~1% for the year.
Adjusted EBITA for the quarter and FY21 is expected to be ~€650M and around €2.1B, respectively, impacted by the decline in sales and higher supply costs.
Group comparable order intake growth in Q4 has remained robust with 4% growth driven by double-digit-growth in the Diagnosis & Treatment businesses, resulting in 4% growth for FY21.
Philips Respironics is increasing the field action provision by around €225M, mainly due to the higher volume of devices now requiring remediation and increased supply costs. Expected remediate is of ~5.2M registered devices globally.
The Q4 and FY 2021 financial results will be reported on January 24, 2022.