Philips delivers Q4 sales of EUR 6.0 billion, with 7% comp. sales growth; income from cont. operations increases to EUR 608 million, Adjusted EBITA margin improves 110 bps to 19.0%, and operating cash flow increases to EUR 1,305 million

January 25, 2021

Fourth-quarter highlights
•        Sales amounted to EUR 6.0 billion, with 7% comparable sales growth
•        Comparable order intake increased 7%
•        Income from continuing operations increased to EUR 608 million, compared to EUR 550 million in Q4 2019
•        Adjusted EBITA margin increased to 19.0% of sales, compared to 17.9% of sales in Q4 2019
•        Income from operations improved to EUR 795 million, compared to EUR 730 million in Q4 2019
•        EPS from continuing operations (diluted) amounted to EUR 0.66; Adjusted EPS increased to EUR 0.94, compared to EUR 0.83 in Q4 2019
•        Operating cash flow improved to EUR 1,305 million, compared to EUR 1,271 million in Q4 2019
•        Free cash flow improved to EUR 1,055 million, compared to EUR 959 million in Q4 2019


Full-year highlights
•        Sales amounted to EUR 19.5 billion, with 3% comparable sales growth
•        Comparable order intake increased 9%
•        Income from continuing operations increased to EUR 1,205 million, compared to EUR 1,192 million in 2019
•        Adjusted EBITA margin was 13.2% of sales, in line with 2019
•        Income from operations amounted to EUR 1,542 million, compared to EUR 1,644 million in 2019
•        EPS from continuing operations (diluted) amounted to EUR 1.31; Adjusted EPS amounted to EUR 1.98, in line with 2019
•        Operating cash flow improved to EUR 2,777 million, compared to EUR 2,031 million in 2019
•        Free cash flow improved to EUR 1,852 million, compared to EUR 1,053 million in 2019
•        Proposed dividend of EUR 0.85 per share, in cash or shares at the option of the shareholder

Frans van Houten, CEO of Royal Philips:

“Against the backdrop of the ongoing COVID-19 pandemic, we continued to support healthcare providers and medical staff with the provision of both acute COVID-19 care and regular healthcare. In the quarter, Philips entered into 25 new long-term strategic partnerships with hospitals in the US, Europe and Asia, to help them achieve their clinical and operational goals with our integrated solutions. We also supported consumers in their homes with telehealth solutions such as tele-dentistry services and remote monitoring.