(News Bulletin 247) – Philips on Monday reported a first quarter profit well above expectations, as the implementation of a simplified and “more agile” operating model began to bear fruit.

The Dutch group, which specializes in healthcare equipment, generated adjusted operating income (Ebita) for the first three months of the year, up to 359 million euros, against 243 million euros a year earlier.

For comparison, analysts expected a profit of around only 200 million euros.

Its operating margin improved at the same time to 8.6%, compared to 6.2% in the first quarter of 2022.

Turnover rose to 4.2 billion euros, representing growth of 6% on a like-for-like basis.

As for its operating cash flow, it amounted to +202 million euros, against -227 million euros a year earlier.

Managing Director Roy Jakobs said he was ‘encouraged’ by a ‘strong start to the year’, which he attributes to improved supply conditions and the implementation of a new business model. business.

The group says it has cut 5,400 of the 10,000 jobs it intends to eliminate as part of its cost-cutting program.

However, the accounts remain burdened by the litigation relating to its respiratory devices marketed in the United States, a file which resulted in a new provision of 575 million euros during the quarter.

Philips, which says it makes resolving the case “its highest priority”, has nevertheless been confident about its prospects for the 2023 financial year.

These announcements pushed the action up 11.9% in sustained volumes of 29 million shares on Monday morning, by far ahead of the largest increases in the AEX index of the Amsterdam Stock Exchange.

The title thus returns to its best level since last August.

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