THE WHAT? Philips has raised its full year 2021 expectations after a core earnings jump of 74 percent in Q1 to 362 million euros ($438 million), driven by demand for its personal health appliances and hospital equipment during the pandemic.
THE DETAILS Reporting a 9 percent rise in comparable sales, the results beat analyst expectations with all business segments and markets contributing to the strong growth, according to Chief Executive Frans van Houten.
Philips is now said to expect “low-to-mid-single-digit comparable sales growth,” up from earlier guidance of low growth.
The company’s personal health business, which includes razors, skincare items and oral healthcare electronics, rose 17 percent YOY, to around $886 million in Q1 sales.
THE WHY? While the company expects growth to slow over the course of the year following a surge in sales in the latter half of 2020, strong sales in its Personal Health and Connected Care divisions has fuelled the raised full year outlook.
van Houten said, “Our growth momentum is driven by our portfolio of innovative solutions, for example in the areas of precision diagnosis, image-guided therapy and telehealth.
“Moreover, we continued to add long-term strategic partnerships with hospitals on the back of more than 50 new partnerships we signed in 2020. This illustrates our ability to meet the needs of today’s hospital leaders, across the globe, as they plan for the future.”