The earnings call presented a mixed picture with strong profitability and order growth outside China, driven by innovation and productivity savings. However, significant challenges remain, particularly with the continued impact of the Respironics recall and the substantial decline in China sales. The company's cautious outlook for 2025 reflects these ongoing challenges.

Company Guidance

During the Royal Philips fourth quarter and full year 2024 results conference call, CEO Roy Jakobs and CFO Charlotte Hanneman highlighted several key metrics and strategic priorities. They reported a 1% growth in comparable sales and orders for the full year, with a notable 5% growth in the rest of the world, countering a double-digit decline in China. The adjusted EBITA margin improved by 90 basis points to 11.5% for the full year, with a strong free cash flow of EUR 0.9 billion. The company achieved productivity savings of over EUR 1.7 billion over the past two years and plans to increase savings targets to EUR 2.5 billion by 2025. They anticipate 1% to 3% sales growth in 2025, despite ongoing challenges in China, and expect margin expansion of 30 to 80 basis points, driven by continuous investment in innovations and operational improvements. Philips proposed a dividend of EUR 0.85 per share, payable in shares or cash, reflecting their robust balance sheet. The company remains focused on resolving the Respironics recall and enhancing supply chain efficiency, while leveraging AI-driven innovations to maintain its market position.

Strong Profitability and Cash Flow

The company delivered strong profitability improvement and cash flow in Q4 and for the full year 2024, with an adjusted EBITA margin increase of 90 basis points versus 2023.

Order and Sales Growth

Comparable order and sales grew low single digit in the quarter and the year, with orders growing 2% driven by strong growth in the US and in growth regions, despite a double-digit decline in China.

Productivity Savings and Innovation

Productivity savings of over EUR1.7 billion in the last two years, with innovations accounting for 50% of sales from new and upgraded products launched in the last three years.

Dividend Proposal

A dividend of EUR0.85 per share was proposed, payable in shares or cash, indicating confidence in the company's long-term plan and strong balance sheet.

AI-Driven Innovation

Introduction of AI-driven innovations such as the helium-free MRI scanner and strategic partnerships for imaging and health informatics platforms.

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Koninklijke Philips (PHG) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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PHG Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
May 06, 2025	2025 (Q1)	0.24 / -	0.269	―	―	―
Feb 19, 2025	2024 (Q4)	0.57 / 0.53	0.426	24.88% (+0.11)
Oct 28, 2024	2024 (Q3)	0.44 / 0.34	0.338	0.00% (0.00)
Jul 29, 2024	2024 (Q2)	0.36 / 0.32	0.288	12.50% (+0.04)
Apr 29, 2024	2024 (Q1)	0.29 / 0.27	0.225	19.56% (+0.04)
Jan 29, 2024	2023 (Q4)	0.56 / 0.43	0.413	3.15% (+0.01)
Oct 23, 2023	2023 (Q3)	0.30 / 0.34	0.229	47.60% (+0.11)
Jul 24, 2023	2023 (Q2)	0.28 / 0.29	0.132	118.18% (+0.16)
Apr 24, 2023	2023 (Q1)	0.13 / 0.23	0.134	67.91% (+0.09)
Jan 30, 2023	2022 (Q4)	0.35 / 0.41	0.597	-30.82% (-0.18)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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PHG Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Feb 19, 2025	$28.31	$25.05	-11.52%
Oct 28, 2024	$31.67	$26.62	-15.95%
Jul 29, 2024	$25.76	$29.15	+13.16%
Apr 29, 2024	$20.33	$25.77	+26.76%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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