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.
Philips 2023 annual results
The year at a glance
EUR
Customer impact and innovation
The technological and business model innovation that Philips brings to healthcare – often as part of long-term partnerships – is critical, making care delivery more effective, efficient and sustainable.
Progress towards our goals
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.
1 Revenue from current green/EcoDesigned products and solutions2 Recycling, reuse and circular materials management of the total used materials
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.
Sustainability highlights
In 2023, we made further advances in the focal areas of climate action, circular economy and access to care.
Charts and historical results
Total tax contributions
| in millions of EUR | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total tax contributions | 4,090 | 3,469 | 3,051 |
Composition of tax contributions
| in millions of EUR | 2021 | 2022 | 2023 |
|---|---|---|---|
| Corporate income tax paid | 818 | 362 | 52 |
| Customs duties | 169 | 144 | 127 |
| Value Added Tax | 821 | 664 | 737 |
| Payroll taxes | 2,133 | 2,174 | 2,021 |
| Other taxes | 149 | 124 | 115 |
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| 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 Group | 14.7% | 6.3% | 10.3% |
Return on total assets (in %)
% | 2021 | 2022 | 2023 |
|---|---|---|---|
| Philips Group | 1.8% | (5.0)% | (0.39)% |
R&D investment as a % of sales
% | 2021 | 2022 | 2023 |
|---|---|---|---|
| Philips Group | 10.5% | 11.7% | 10.4% |
Net debt : group equity ratio
2021 | 2022 | 2023 | |
|---|---|---|---|
| Philips Group | 24:76 | 35:65 | 33:67 |
Comparable sales growth (in %)
% | 2021 | 2022 | 2023 |
|---|---|---|---|
| Diagnosis & Treatment | 8.3% | (0.8)% | 11.1% |
| Connected Care | (19.0)% | (9.1)% | 1.1% |
| Personal Health | 8.8% | 0.1% | 3.2% |
| Philips Group | (1.2)% | (2.8)% | 6.0% |
Sales
| in millions of EUR | 2021 | 2022 | 2023 |
|---|---|---|---|
| Diagnosis & Treatment | 7,825 | 8,290 | 8,818 |
| Connected Care | 5,371 | 5,268 | 5,138 |
| Personal Health | 3,429 | 3,626 | 3,602 |
| Other | 530 | 643 | 612 |
| Philips Group | 17,156 | 17,827 | 18,169 |
Income from operations
| in millions of EUR | 2021 | 2022 | 2023 |
|---|---|---|---|
| Diagnosis & Treatment | 948 | 538 | 720 |
| Connected Care | (716) | (2,347) | (1,199) |
| Personal Health | 576 | 515 | 552 |
| Other | (255) | (235) | (188) |
| Philips Group | 553 | (1,529) | (115) |
Adjusted EBITA
| in millions of EUR | 2021 | 2022 | 2023 |
|---|---|---|---|
| Diagnosis & Treatment | 1,028 | 788 | 1,026 |
| Connected Care | 553 | 111 | 369 |
| Personal Health | 590 | 538 | 597 |
| Other | (117) | (119) | (71) |
| Philips Group | 2,054 | 1,318 | 1,921 |
Income (loss) from continuing operations
| in millions of EUR | 2021 | 2022 | 2023 |
|---|---|---|---|
| Philips Group | 612 | (1,618) | (454) |
Net income (loss)
| in millions of EUR | 2021 | 2022 | 2023 |
|---|---|---|---|
| Philips Group | 3,323 | (1,605) | (463) |
Income from operations as a % of sales
| as a % of sales | 2021 | 2022 | 2023 |
|---|---|---|---|
| Diagnosis & Treatment | 12.1% | 6.5% | 8.2% |
| Connected Care | (13.3)% | (44.6)% | (23.34)% |
| Personal Health | 16.8% | 14.2% | 15.3% |
| Philips Group | 3.2% | (8.6)% | (0.6)% |
Adjusted EBITA as a % of sales
| as a % of sales | 2021 | 2022 | 2023 |
|---|---|---|---|
| Diagnosis & Treatment | 13.14% | 9.5% | 11.6% |
| Connected Care | 10.3% | 2.1% | 7.2% |
| Personal Health | 17.2% | 14.8% | 16.6% |
| Philips Group | 12.0% | 7.4% | 10.6% |
Balance sheet
| in millions of EUR | 2021 | 2022 | 2023 |
|---|---|---|---|
Total assets | 30,961 | 30,688 | 29,406 |
Total liabilities | 16,486 | 17,405 | 17,345 |
Group equity | 14,475 | 13,283 | 12,061 |
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 | 1.58 | 0.92 | 1.25 |
Dividend distributed per common share | 0.85 | 0.85 | 0.85 |
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 Group | 28,512 | 12,344 | 19,115 |
Employees in FTE at year-end
2021 | 2022 | 2023 | |
|---|---|---|---|
| Diagnosis & Treatment | 29,094 | 30,335 | 28,397 |
| Connected Care | 21,047 | 19,241 | 17,549 |
| Personal Health | 10,134 | 9,319 | 9,085 |
| Other | 17,913 | 18,337 | 14,626 |
Philips Group | 78,189 | 77,233 | 69,656 |
Engagement index (in % of positive score)
| % positive score | 2021 | 2022 | 2023 |
|---|---|---|---|
Philips Group | 79 | 77 | 73 |
Female executives (in % of total)
| in % of total | 2021 | 2022 | 2023 |
|---|---|---|---|
Philips Group | 25 | 24 | 25 |
Lost Workday Injuries (per 100 FTEs)
| per 100 FTEs | 2021 | 2022 | 2023 |
|---|---|---|---|
| Diagnosis & Treatment | 0.28 | 0.21 | 0.28 |
| Connected Care | 0.09 | 0.09 | 0.13 |
| Personal Health | 0.16 | 0.09 | 0.09 |
| Other | 0.12 | 0.08 | 0.09 |
| Philips Group | 0.16 | 0.11 | 0.12 |
Total recordable cases (per 100 FTEs)
| 2021 | 2022 | 2023 | |
|---|---|---|---|
| Diagnosis & Treatment | 0.53 | 0.41 | 0.43 |
| Connected Care | 0.31 | 0.19 | 0.27 |
| Personal Health | 0.24 | 0.27 | 0.21 |
| Other | 0.21 | 0.17 | 0.18 |
| Philips Group | 0.29 | 0.23 | 0.24 |
Fatalities
| 2021 | 2022 | 2023 | |
|---|---|---|---|
| Philips Group | 0 | 0 | 0 |
Green Revenues (in EUR millions)
| in millions of EUR | 2021 | 2022 | 2023 |
|---|---|---|---|
| Diagnosis & Treatment | 6,702 | 7,245 | 7,112 |
| Connected Care | 2,547 | 2,252 | 2,924 |
| Personal Health | 2,846 | 3,278 | 2,723 |
| Other | 52 | ||
| Philips Group | 12,095 | 12,774 | 12,811 |
Green Revenues (as a % of total sales)
| 2021 | 2022 | 2023 | |
|---|---|---|---|
| Diagnosis & Treatment | 85.6 | 87.4 | 0.8 |
| Connected Care | 47.4 | 42.7 | 0.6 |
| Personal Health | 83.0 | 90.4 | 0.8 |
| Other | 0.1 | ||
| Philips Group | 0.7 | 0.7 | 0.7 |
Green Innovation (in EUR millions)
| in millions of EUR | 2021 | 2022 | 2023 |
|---|---|---|---|
| Diagnosis & Treatment | 96 | 93 | 78 |
| Connected Care | 32 | 31 | 29 |
| Personal Health | 65 | 40 | 33 |
| Other | 4 | 4 | 2 |
| Philips group | 197 | 168 | 142 |
Operational carbon footprint for logistics (in tonnes CO2-equivalent)
| 2021 | 2022 | 2023 | |
|---|---|---|---|
| Air freight | 252,104 | 213,562 | 168,153 |
| Road freight | 54897.4402924577 | 27,275.6 | 26,393 |
| Sea freight | 38,997 | 22,149.6 | 23,552 |
| Parcel freight | 70962.5839535206 | 63,810.56 | 86,988 |
| Philips Group | 416961.024245978 | 326,797.76 | 305,086 |
Total energy consumption (in MWh)
| 2021 | 2022 | 2023 | |
|---|---|---|---|
| Total energy consumption | 524,100 | 496,600 | 457,576 |
Operational energy efficiency (in MWh per EUR million sales)
| in MWh/million EUR sales | 2022 | 2023 |
|---|---|---|
| Philips Group | 28 | 25 |
Total energy consumption in manufacturing (in MWh)
| in gigawatt hours | 2021 | 2022 | 2023 |
|---|---|---|---|
| Diagnosis & Treatment | 175,278 | 169,893 | 166,461 |
| Connected Care | 44,722 | 41,509 | 39,523 |
| Personal Health | 130,834 | 126,738 | 116,548 |
| Philips Group | 350,834 | 338,140 | 322,532 |
Water withdrawal (in thousands of m3)
| in thousands of m3 | 2021 | 2022 | 2023 |
|---|---|---|---|
| Diagnosis & Treatment | 337 | 310 | 324 |
| Connected Care | 119 | 111 | 99 |
| Personal Health | 247 | 257 | 238 |
| Philips Group | 703 | 678 | 661 |
Zero waste to landfill (in tonnes)
| 2021 | 2022 | 2023 | |
|---|---|---|---|
| Philips Group | 19 | 1 | 2.7 |
Materials recirculated (Circular Materials Management) per total waste (in %)
| 2021 | 2022 | 2023 | |
|---|---|---|---|
| Philips Group | 87 | 91 | 91 |
Hazardous substances emissions (in kilos)
| 2021 | 2022 | 2023 | |
|---|---|---|---|
| Diagnosis & Treatment | 181 | 175 | 158 |
| Connected Care | 1,239 | 863 | 781 |
| Personal Health | 1,242 | 510 | 362 |
| Philips Group | 2,662 | 1,548 | 1,300 |
VOC emissions (in tonnes)
| 2021 | 2022 | 2023 | |
|---|---|---|---|
| Diagnosis & Treatment | 42 | 38 | 34 |
| Connected Care | 3 | 2 | 2 |
| Personal Health | 33 | 37 | 38 |
| Philips Group | 78 | 77 | 74 |
ISO 14001 certification (as a % of all reporting organizations)
| % | 2021 | 2022 | 2023 |
|---|---|---|---|
| Philips Group | 92 | 96 | 96 |
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