Q1 2025 Koninklijke Philips NV Earnings Call Transcript
Key Points
- Order intake grew despite a double-digit decline in China, driven by strong growth in North America and Diagnosis & Treatment.
- Sales performance exceeded expectations, driven by Personal Health growth and royalty phasing.
- Innovations and productivity measures led to an improvement in gross margin.
- Personal Health sales returned to growth, with strong performance in Europe and other growth markets.
- The company is making progress on execution priorities, including patient safety, quality, and supply chain resilience.
- China experienced a double-digit decline in sales, impacting overall performance.
- Tariffs are expected to have a significant impact, with a net cost impact estimated between EUR250 million to EUR300 million.
- Adjusted EBITA margin decreased by 80 basis points to 8.6%, despite efforts to improve productivity.
- Free cash flow was negatively impacted by a EUR1 billion payment related to the Respironics settlement.
- The macroeconomic environment remains uncertain, with potential impacts from tariffs and subdued consumer demand in China.
Welcome to the Royal Philips first-quarter 2025 results conference call on Tuesday, May 6, 2025. During the call hosted by Mr. Roy Jakobs, CEO; and Ms. Charlotte Hanneman, CFO, all participants will be on a listen-only mode. After the introduction, there will be an opportunity to ask questions. Please note that this call will be recorded and replay will be available on the investor relations website of Royal Philips.
I'll now hand the conference over to Ms. Durga Doraisamy, Head of Investor Relations. Thank you. Please go ahead, ma'am.
Hello everyone. Welcome to Philip's results webcast for the first quarter of 2025. I'm here with our CEO, Roy Jakobs; and our CFO, Charlotte Hanneman. The press release and the investor presentation were published on our investor relations website this morning. The replay and full transcript of this webcast will be made available on the website after this call.
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