2023 annual results

Creating value with sustainable impact

2023 was a year of many challenges, as well as considerable progress, with continued strong focus on patient safety and quality, supply chain reliability, and performance improvement.
Roy Jakobs
CEO Royal Philips
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Roy Jakobs – CEO Royal Philips

Philips 2023 annual results

The year at a glance

18.2
billion
EUR
sales
6%
comparable sales growth
10.6%
Adjusted EBITA margin
1.88
billion
lives improved
20.0%
circular revenues
~69,700
employees
Our strategy and businesses
As a focused leader in health technology, we aim to create value with sustainable impact based on focused organic growth and scalable patient- and people-centric innovation, with improved execution as key value driver.
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Strategy and business feature image
ESG feature image
Environmental, Social and Governance
At Philips, we are partnering with our stakeholders to drive environmental, social and governance priorities and make a global impact.
Download our ESG performanceCountry Activity & Tax Report

Progress towards our goals

Lives improved

At Philips, we are striving to make the world healthier and more sustainable through innovation, with the goal of improving the lives of 2.5 billion people a year by 2030. This includes improving access to care in underserved communities for 400 million people a year.

To ensure we remain on track to achieve this goal, we have developed a model, audited externally, that tells us how many lives have been improved by our products and solutions in a given year.

Download our methodology

1.67billion
1.88
2.5
Lives improved
167million
221
400
Lives improved in underserved communities
2E226E4A-9D34-428E-9603-8F2147474F3A
71%100%100% sales from green products and solutions 1
70.5%
7C04B12B-8CA6-4A93-B8DE-DECFF9EDAB7D
16%25%25% sales from circular products and solutions
20.0%
B58BD847-4D65-4A26-B2B8-387BFF8C1715
100%75% operations powered by renewable energy
78%
E2C0C3A3-A18F-4561-B6FB-CF881CE7508A
87%95%95% circular materials management 2
91%
124104F3-3131-41A9-B350-DCA9E31AE498
100%100% industrial sites sending zero waste to landfill
100%
15158A4B-4536-4366-A76C-8D8AB0A0B760
1%5%5% reduction in water consumption from 2019 level
7%
All data points refer to 2023
1  We will design all new product introductions in line with our EcoDesign requirements by 20252  Recycling, reuse and circular materials management of the total used materials
Environmental sustainability targets

Reflecting our commitment to SDG 12 (Sustainable consumption and production) and SDG 13 (Climate action), we have set specific targets – to be achieved by 2025 – to reduce our environmental impact and help fight climate change. Here you can see how we’re progressing towards these goals.

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Charts and historical results

Statement of income
Profitability
Balance sheet
Cash flow
Key figures per share
Ratios
ESG
Tax

Total tax contributions 

in millions of EUR

2021

2022

2023

Total tax contributions4,0903,4693,051

Composition of tax contributions 

in millions of EUR

2021

2022

2023

Corporate income tax paid81836252
Customs duties169144127
Value Added Tax821664737
Payroll taxes2,1332,1742,021
Other taxes149124115

[maintitle]

in millions of EUR

2021

2022

2023

Net cash provided by operating activities

1,629
(173)
2,136

Net capital expenditures

(729)
(788)
(554)

Free cash flow

900
(961)
1,582

Organic Return on Invested Capital (in %)


%

2021

2022

2023

Philips Group14.7%6.3%10.3%

Return on total assets (in %)


%

2021

2022

2023

Philips Group1.8%(5.0)%(0.39)%

R&D investment as a % of sales


%

2021

2022

2023

Philips Group10.5%11.7%10.4%

Net debt : group equity ratio

 

2021

2022

2023

Philips Group24:7635:6533:67

Comparable sales growth (in %)


%

2021

2022

2023

Diagnosis & Treatment8.3%(0.8)%11.1%
Connected Care(19.0)%(9.1)%1.1%
Personal Health8.8%0.1%3.2%
Philips Group(1.2)%(2.8)%6.0%

Sales 

in millions of EUR

2021

2022

2023

Diagnosis & Treatment7,8258,2908,818
Connected Care5,3715,2685,138
Personal Health3,4293,6263,602
Other530643612
Philips Group17,15617,82718,169

Income from operations 

in millions of EUR

2021

2022

2023

Diagnosis & Treatment948538720
Connected Care(716)(2,347)(1,199)
Personal Health576515552
Other(255)(235)(188)
Philips Group553(1,529)(115)

Adjusted EBITA 

in millions of EUR

2021

2022

2023

Diagnosis & Treatment1,0287881,026
Connected Care553111369
Personal Health590538597
Other(117)(119)(71)
Philips Group2,0541,3181,921

Income (loss) from continuing operations 

in millions of EUR

2021

2022

2023

Philips Group612(1,618)(454)

Net income (loss) 

in millions of EUR

2021

2022

2023

Philips Group3,323(1,605)(463)

Income from operations as a % of sales

as a % of sales

2021

2022

2023

Diagnosis & Treatment12.1%6.5%8.2%
Connected Care(13.3)%(44.6)%(23.34)%
Personal Health16.8%14.2%15.3%
Philips Group3.2%(8.6)%(0.6)%

Adjusted EBITA as a % of sales

as a % of sales

2021

2022

2023

Diagnosis & Treatment13.14%9.5%11.6%
Connected Care10.3%2.1%7.2%
Personal Health17.2%14.8%16.6%
Philips Group12.0%7.4%10.6%

Balance sheet 

in millions of EUR

2021

2022

2023

Total assets

30,96130,68829,406

Total liabilities

16,48617,40517,345

Group equity

14,47513,28312,061

Per share information (in EUR)

in EUR

2021

2022

2023

Income from continuing operations attributable to shareholders per common share - diluted

0.64-1.76-0.50

Adjusted income from continuing operations attributable to shareholders per common share - diluted

1.580.921.25

Dividend distributed per common share

0.850.850.85

Share price information (in EUR)

in EUR

2021

2022

2023

Share price at year-end

32.77
14.00
21.09

Price/earnings ratio (basic EPS)

48.90
0.00
0.00

Market capitalization at year-end (in EUR billions)

in millions of EUR

2021

2022

2023

Philips Group28,51212,34419,115

Employees in FTE at year-end

 

2021

2022

2023

Diagnosis & Treatment29,09430,33528,397
Connected Care21,04719,24117,549
Personal Health10,1349,3199,085
Other17,91318,33714,626

Philips Group

78,18977,23369,656

Engagement index (in % of positive score)

% positive score

2021

2022

2023

Philips Group

797773

Female executives (in % of total)

in % of total

2021

2022

2023

Philips Group

252425

Lost Workday Injuries (per 100 FTEs)

per 100 FTEs202120222023
Diagnosis & Treatment0.280.210.28
Connected Care0.090.090.13
Personal Health0.160.090.09
Other0.120.080.09
Philips Group0.160.110.12

Total recordable cases (per 100 FTEs)

202120222023
Diagnosis & Treatment0.530.410.43
Connected Care0.310.190.27
Personal Health0.240.270.21
Other0.210.170.18
Philips Group0.290.230.24

Fatalities

202120222023
Philips Group000

Green Revenues (in EUR millions)

in millions of EUR202120222023
Diagnosis & Treatment6,7027,2457,112
Connected Care2,5472,2522,924
Personal Health2,8463,2782,723
Other52
Philips Group12,09512,77412,811

Green Revenues (as a % of total sales)

202120222023
Diagnosis & Treatment85.687.480.7
Connected Care47.442.756.9
Personal Health83.090.475.6
Other8.5
Philips Group70.571.770.5

Green Innovation (in EUR millions)

in millions of EUR202120222023
Diagnosis & Treatment969378
Connected Care323129
Personal Health654033
Other442
Philips group197168142

Operational carbon footprint for logistics (in tonnes CO2-equivalent)

202120222023
Air freight252,104213,562168,153
Road freight54,89727,27626,393
Sea freight38,99722,15023,552
Parcel freight70,96363,81186,988
Philips Group416,961326,798305,086

Total energy consumption (in MWh)

 202120222023
Total energy consumption524,100496,600457,576

Operational energy efficiency (in MWh per EUR million sales) 

in MWh/million EUR sales20222023
Philips Group2825

Total energy consumption in manufacturing (in MWh)

in gigawatt hours202120222023
Diagnosis & Treatment175,278169,893166,461
Connected Care44,72241,50939,523
Personal Health130,834126,738116,548
Philips Group350,834338,140322,532

Water withdrawal (in thousands of m3)

in thousands of m3202120222023
Diagnosis & Treatment337310324
Connected Care11911199
Personal Health247257238
Philips Group703678661

Zero waste to landfill (in tonnes)

202120222023
Philips Group1912.7

Materials recirculated (Circular Materials Management) per total waste (in %)

202120222023
Philips Group879191

Hazardous substances emissions (in kilos)

202120222023
Diagnosis & Treatment181175158
Connected Care1,239863781
Personal Health1,242510362
Philips Group2,6621,5481,300

VOC emissions (in tonnes)

202120222023
Diagnosis & Treatment423834
Connected Care322
Personal Health333738
Philips Group787774

ISO 14001 certification (as a % of all reporting organizations)

%202120222023
Philips Group929696
Creating value with sustainable impact
Based on the International Integrated Reporting Council framework, we use various resources to create value with sustainable impact for our stakeholders.
Download the overview
Creating value with sustainable impact

All holders of Philips securities can receive a hard copy of the complete annual audited financial statements free of charge by submitting a request to annual.report@philips.com