(Reuters) – Philips raised its full-year guidance slightly on Monday after posting a bigger-than-expected rise in second-quarter operating profit on the back of an improved supply chain and order backlog.
Adjusted earnings before interest, taxes and amortization (Ebita) amounted to 453 million euros for the quarter ended June 30. Analysts were expecting Ebita of 394 million euros, according to a consensus compiled by the company.
The Dutch medical equipment manufacturer now expects like-for-like sales growth of around 4-6% (“mid-single-digit”), compared to growth of 1-3% (“low-single-digit”) previously.
The Adjusted Ebita margin is now at the upper end of the previously announced range of 7-9% (“high-single-digit”).
Philips, which is facing lawsuits over its recalled breathing devices, said it produced about 99% of the new replacement ventilators and repair kits needed to sanitize affected devices on record.
Since 2021, the Dutch medical equipment maker has been grappling with the fallout of a global recall of millions of ventilators used to treat sleep apnea.
“Completing the field action of Philips Respironics remains our top priority. The vast majority of sleep therapy devices are now with patients and home care providers, and we are fully focused on repairing affected ventilators,” chief executive Roy Jakobs said in a statement.
Philips also said litigation and the U.S. Department of Justice’s investigation into Respironics’ lawsuit are ongoing, along with discussions of a proposed consent decree.
(Report by Diana Mandiá in Gdansk; Lina Golovnya, editing by Kate Entringer)
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