Last Updated: 12th November 2022
Philips is a global life sciences company manufacturing a range of medical and care products for healthcare professionals and consumers.
NOTE: Philips has divested of the appliances part of the business that makes kettles, TVs and irons! They are still sold under the Philips brand name but are a completely separate business.
Employees: 80,000
Revenue: €17.2bn for FY2021
HQ Location: Eindhoven, Netherlands
What they do:
Pureplay healthcare company (they divested of the consumer tech business)
Three business units: Diagnosis and Treatment, Connected Care and Personal Health
Their vision and priorities:
Three imperatives: better serve customers, boost core business, win with solutions
Quadruple aim of the company: Better health outcomes, improved patient experience, improved staff experience, lower cost of care
KPIs: revenue growth of 5-6% per annum, margin growth of 60-80 basis points per annum
Three things to know right now
Roy Jakobs is the new CEO
Roy became CEO in November 2022. He had previously run two other business units and was promoted when the previous CEO retired.
“My focus is on returning Philips to profitability”
The Respironics recall
In 2010 Philips announced that some of their home ventilator products were deteriorating meaning foam from within the product could be ingested into patients lungs.
Philips has carried out a full recall consisting of 5.5 million units.
90% of the recall is expected to be completed by the end of 2022
4000 employees laid off
In November 2022 new CEO Roy Jakobs announced that in an effort to improve the productivity of the business 4000 roles would be removed from the business
What does each business unit do?
Diagnosis and Treatment
This business unit sells devices to hospitals and healthcare providers.
Think of large scanners, data solutions and machinery that supports patients.
Connected Care
This business unit focuses on patients outside of the hospital - back at home or in an outpatient facility.
Think of ventilators or blood pressure sensors you might use yourself.
Personal Care
This business unit focuses on products you might use at home like shavers and hair dryers.
Their financial calendar
Q1: January-March - Earnings 25th April
Q2: April-June - Earnings 25th July
Q3: July-September - Earnings 25th October
Q4: September-December - Earnings 25th January
Three positives from the last earnings report:
Nearly completed Respironics recall
Roy Jakobs now started as CEO
Signed several strategic partnerships with hospitals in China and Japan
Three challenges from the last earnings report:
4000 layoffs announced
5% reduction in comparable sales volumes
Operating cashflow was an outflow of EUR 180 million
Next Earnings Report:
Around 25th January 2023
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