Philips has posted results for its first quarter, showing losses offset by growth, and an outlook adjusted to reflect uncertainty in the global economy.
Group sales for Q1 were €4.1 billion, with a 2% decline in comparable sales growth, which the company noted in a statement was mainly due to China. Offsetting that decline, comparable order intake increased 2%, primarily due to strong performance in North America.
Diagnosis & Treatment comparable sales decreased by 4% due to a double-digit decline in China, and Connected Care comparable sales were broadly flat across businesses. However, Image-Guided Therapy performed well, and Personal Health showed positive growth in most markets.
Income from operations increased to €154 million; free cash flow consisted of an outflow of €1.09 billion, mainly due to the €1.025 billion payment from the Philips Respironics recall-related medical monitoring and personal injury settlements in the U.S.
The firm noted that its productivity initiatives delivered first-quarter savings of €147 million, including €42 million in operating model savings, €46 million in procurement savings, and €59 million in savings from other programs. Philips said that its productivity initiatives are on track for €800 million in savings in 2025.
Philips has updated its outlook for full-year 2025 to include the assumed effects of currently announced tariffs, including the current bilateral U.S.-China tariffs, those with the rest of the world, and the resumption of the paused U.S. tariffs on 9 July. This outlook excludes potential wider economic impact, the firm noted, as well as ongoing Philips Respironics-related proceedings.
The company anticipates that its 2025 performance will be stronger in the latter part of the year, with Q2 showing some improvement over Q1.
