Philips CEO reveals post-settlement strategy for growth

July 29, 2024 06:01 AM PDT | By Invezz

Philips CEO reveals post-settlement strategy for growth — Image source: Invezz

Philips has big deals in the pipeline

Philips reported better-than-expected earnings for its second quarter this morning.

While the company based out of Amsterdam, Netherlands is yet to get past the DOJ investigation as well, it continues to expect up to 5.0% increase in comparable sales this year on momentum building across all of its business units.

PHIA is slated to soon close big deals in both North America and Europe that will likely drive strength in the back half of 2024, as per CEO Roy Jakobs.

The chief executive hailed China as a “fundamentally attractive growth market” for Philips despite weakness in Q2. In Europe, the company saw a more significant pickup on the consumer side than it did on the healthcare side, he added.

Jakobs remains positive on what the future holds for Philips also because there’s “new momentum coming up” in the growth markets like Indonesia and the Middle East while North America continues to be the strong market for his company’s healthcare business.

Philips expects recovery in China

Philip CEO Roy Jakobs is convinced China will improve moving forward as the company continues to bring its innovations to the market. PHIA has been active in China for about 100 years.

The chief executive remains bullish as PHIA is “very well-positioned to capture opportunities” in North America, he said on “Squawk Box Europe” on Monday.

Philips has been restructuring since 2022 – a move that will lower its global headcount by 13% (10,000 jobs). All in all, it’s committed to cutting some €195 million ($211) million in costs.

Heading into the earnings report, Wall Street had a consensus “hold” rating on Philips stock. Analysts see PHIA as fairly valued at $28.53 that signals potential for another 10% gain from here.

You can read the full quarterly release of Koninklijke Philips NV on this link.

The post Philips CEO reveals post-settlement strategy for growth appeared first on Invezz

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