Dow Jones Newswires: Philips warns of 5% fall in like-for-like sales due to supply-chain woes

by | Oct 12, 2022 | Stock Market

Royal Philips NV said Wednesday that its performance for the third quarter was hurt by stronger-than-anticipated supply-chain challenges, and adopted a more pessimistic view on its sales through the end of the year. The Dutch health-technology company

said that it expects to record a 1.3 billion euro ($1.26 billion) impairment charge in the period. The company said that this is an impairment of goodwill of Philips Respironics, its sleep and respiratory care business, and that it is due to revisions to the business’s financial forecast.

This compares with adjusted Ebita of EUR512 million, or 12.3% of sales, a year earlier. Analysts had seen the metric at EUR336 million, according to a consensus estimate provided by the company. Philips expects to book a EUR1.3 billion impairment charge on its sleep and respiratory care business after revising its financial forecast for the unit, it said. Group comparable sales for the quarter fell around 5%. For the last quarter of the year, Philips now expects a mid-single-digit decline in comparable sales, it said. In late July, Philips had guided for 6%-9% growth in comparable sales over the second half of the year. “Philips still expects a better second half of the year, compared to th …

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