Shares of Philips rose by 13% after the publication of quarterly reports – Kommersant
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Dutch company Philips introduced financial statements for the first quarter. The company’s revenue in this period increased by 6%, amounting to €4.1 billion. At the same time, Philips’ net loss was €665 million, a significant increase compared to the same period in 2022, when this figure was €151 million. least due to the fact that Philips allocated € 575 million to settle litigation due to the recall of the company’s medical devices. At the same time, earnings before taxes, interest and amortization (EBITA) increased by 47%, amounting to €359 million. Quarterly results were better than analysts’ expectations, which led to the growth of the company’s stock quotes today, April 24, by 13%.
In 2021 Philips announced a recall about 4 million ventilators, ventilators and apnea sleep aids due to “identified potential health risks” in their use. The US Department of Justice is investigating the company, and a number of class and individual lawsuits have been filed against it. Shares of Philips during this time have fallen in price by 60%, as investors fear possible huge compensation and fines in this case.
Analysts note that no agreements have yet been reached and it is difficult to determine the exact amount of compensation, but the fact that the company has now set aside a relatively modest €575 million for this has reassured many investors. The company had previously set aside €970 million for possible settlement of claims, and the costs associated with the recall of devices amounted to €1.5 billion. Due to the recall of devices, Philips has been losing money for several quarters in a row. Over the past six months, the company reduced a total of 10 thousand employees.
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