Philips records strong revenue growth due to recovery in healthcare in the US | NOW

Philips posted sales of EUR 3.8 billion in the first quarter. The turnover from continuing operations is 9 percent higher than in the same period a year earlier, according to the quarterly figures of the medical technology company on Monday.

Philips sold the household appliances branch last year. The results of those activities are now not included in the figures for the first time.

The activities in the United States in particular are back on track. Hospitals can again provide more planned care and invest in new equipment, now that the corona crisis is increasingly under control.

The Diagnostic and Treatment component shows a growth of 11 percent. Philips’ Personal Health Care division is also showing growth. This business unit manufactures electric toothbrushes, shavers and baby products, among others.

Bottom line, Philips ends up with a loss of 34 million euros. This has to do with a recall of sleeping and breathing equipment in which problems were found. If that one-off setback is not taken into account, a profit of 17 million euros will roll out.

CEO Frans van Houten says in an explanation of the figures that the company has momentum due to its innovative strength. He mentions the more than fifty new strategic partnerships that Philips has entered into with hospitals in the past year.