Philips announced FY17 Q2 result with sales of €4.3 billion ($5.9 billion) and net income of €161 million ($187 million), resulting in a net margin of 3.7%. The sales increased by 4% while net income increased by 36% on a yearly basis. Adjusted EBITA improved 15% to €439 million ($509 million) compared to €383 million ($444 million) an year ago.
The management believes that the quarterly performance was solid especially in the Healthtech segment, primarily driven by sales growth in Western Europe, North America and China, and a strong 8 % increase in the company’s order intake. It also achieved a 90-basis-point increase in the Adjusted EBITA margin, driven by higher volumes, operational improvements and cost productivity.
For FY17 Q3, the company believes that it is on track to deliver 4-6% comparable sales growth and an improvement in Adjusted EBITA margin of around 100 basis points.
