(RTTNews) - Dutch consumer electronics giant Koninklijke Philips N.V. (PHGFF.PK, PHG) reported Tuesday higher profit in its third quarter, despite weak sales. Comparable sales and order intake grew from last year.
Further, the company reiterated fiscal 2025 outlook, with margin now expected at the upper end of the range.
Philips added that it is still on track to deliver its three-year, 2.5 billion euros productivity program, including 800 million euros productivity savings in 2025.
Looking ahead, for fiscal 2025, Philips now expects adjusted EBITA margin towards the upper end of the range of 11.3 percent to 11.8 percent.
Comparable sales growth range is still expected at 1 percent to 3 percent.
The outlook excludes ongoing Philips Respironics-related proceedings, including the investigation by the US Department of Justice.
In the third quarter, net income attributable to shareholders grew to 184 million euros from last year's 181 million euros. Earnings per share, meanwhile, remained with prior year's level of 0.19 euro.
Adjusted income attributable to shareholders was 0.36 euro per share, compared to 0.32 euro per share a year ago.
Income from operations, meanwhile, dropped to 330 million euros from last year's 337 million euros, and operating margin remained at 8 percent.
Adjusted EBITA increased to 531 million euros from 516 million euros last year, and the margin improved 50 basis points year-over-year to 12.3 percent, mainly driven by sales growth, favorable mix effects and productivity measures, partly offset by higher tariffs.
Sales for the quarter dropped 2 percent to 4.30 billion euros from last year's 4.38 billion euros. Comparable sales increased 3.3 percent, driven by growth across all segments.
Comparable order intake grew 8 percent in the third quarter, supported by continued strong performance in North America.
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