Koninklijke Philips NV (AMS: PHIA) said on Monday that its net profit saw a slight increase in the first quarter, despite a £217.36 million provision that it had to book due to a quality issue found in a component used in a few of its sleep and respiratory care products.
Philips shares slid more than 0.5% in premarket trading on Monday and lost another 2% on market open. Including the price action, the stock is now exchanging hands at £42.43 per share. In comparison, Philips NV had started the year 2021 at a lower per-share price of £39.71. The price action should come in handy if you are interested in investing in the stock market.
Philips raises its guidance for the full year
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Despite a hit to its accounts, Philips raised its guidance for the full year on Monday. It now forecasts its comparable sales to climb by up to 5% in 2021. Its adjusted EBITDA margin, it added, is likely to jump sixty to eighty basis points this year.
The Dutch multinational conglomerate reported £33.91 million of net profit attribute to shareholders in the quarter that concluded on 31st March. In the comparable period of last year, its net profit was capped at a marginally lower £33.04 million. In the prior quarter (Q4), Philips NV had posted £535.61 million of net profit, as per the report published in the last week of January.
Philips’ quarterly sales registered at £3.33 billion versus the year-ago figure of £3.21 billion. Analysts, on the other hand, had called for £3.23 billion of sales for the health-technology company in the recent quarter. Comparable sales, Philips said, came in 9% up to beat consensus estimates of 6.3%.
Philips reports £314.74 million of adjusted EBITA
On an adjusted basis, the Amsterdam-headquartered firm reported earnings before interest, taxes, and amortisation (EBITA) of £314.74 million – an increase from £180.84 million last year. Experts had forecast a lower £283.44 million of adjusted EBITA for Philips in the first quarter.
In separate news from Europe, the British multinational manufacturer Rolls-Royce Holdings said on Monday it was in constructive talks with Spain over the sale of its ITP Aero unit.
Philips NV closed almost flat in the stock market in 2020. At the time of writing, the company that was founded in 1891 is valued at £38.73 billion and has a price to earnings ratio of 37.44.