Q2 2020 results

Amsterdam, July 20, 2020

Philips delivers Q2 sales of EUR 4.4 billion, with 6% comparable sales decrease; income from continuing operations of EUR 213 million, Adjusted EBITA margin of 9.5% and operating cash flow of EUR 558 million

  • Sales amounted to EUR 4.4 billion, with a 6% comparable sales decrease
  • Comparable order intake increased 27%
  • Income from continuing operations was EUR 213 million, compared to EUR 260 million in Q2 2019
  • Adjusted EBITA margin was 9.5% of sales, compared to 11.8% of sales in Q2 2019
  • Income from operations amounted to EUR 229 million, compared to EUR 350 million in Q2 2019
  • EPS from continuing operations (diluted) amounted to EUR 0.23; Adjusted EPS amounted to EUR 0.35, compared to EUR 0.42 in Q2 2019
  • Operating cash flow improved to EUR 558 million, compared to EUR 390 million in Q2 2019
  • Free cash flow increased to EUR 311 million, compared to EUR 174 million in Q2 2019
  • Our products and solutions improved the lives of 1.65 billion people worldwide, an increase of 60 million lives year-on-year; our efforts to improve access to care for underserved healthcare communities resulted in 192 million lives improved (180 million in Q2 2019).
  • Together with 50 global leaders, Philips CEO Frans van Houten signed a pledge to build back a better future, accelerating the transition to a circular economy — creating solutions that combine economic opportunity with benefits to wider society and the environment.
  • Philips’ Lumify app-based handheld ultrasound, which empowers healthcare professionals to get diagnostic insight at the point-of-care – whether in the emergency department of a major hospital or in a remote village – has been awarded the 2020 IEEE Spectrum Technology in the Service of Society Award, as the technology having the greatest potential to provide the most overall benefit to humankind.
  • In North America, Philips achieved a milestone as all its manufacturing sites achieved ‘zero waste to landfill’ status. 
Strategic partnerships

Partnerships enhancing care and productivity

Highlighting its strength in strategic partnerships to enhance patient care and improve care provider productivity, Philips signed 14 new agreements in the quarter. For example, Philips and the US Department of Veterans Affairs entered a 10-year agreement to expand their tele-critical care program, creating the world’s largest system to provide veterans with remote access to intensive care expertise, regardless of their location. In the Netherlands, Philips and Flevo Hospital signed a 10-year strategic partnership agreement to support precision diagnosis and optimize workflows and patient pathways, while driving efficiencies and cost optimization.
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Ramping up critical care ventilator production

In collaboration with its partners and suppliers, Philips tripled the production of its hospital ventilators in the quarter and is on track to achieve the planned four-fold increase to 4,000 units per week in July 2020, supporting the treatment of COVID-19 patients in the most affected regions around the world.
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New monitoring solutions

Philips launched several new monitoring solutions for the Intensive Care Unit (ICU), the general ward and the home that feature remote monitoring capabilities and advanced analytics. These include Philips’ IntelliVue Patient Monitors MX750/MX850 for the ICU, Philips’ Biosensor BX100 for early patient deterioration detection in the general ward, and in collaboration with BioIntelliSense, the BioSticker medical device to help monitor at-risk patients from the hospital to the home.
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Virtual care

Helping improve acute care outcomes

University of Kentucky HealthCare teamed up with Philips to implement the company’s tele-ICU technology to enhance patient care and improve utilization and patient flows across 160 ICU beds at the academic medical center’s two hospitals. Leveraging Philips’ acute telehealth platform, eCareManager, UK HealthCare is implementing the state’s first centralized virtual care model to help nurses detect risk of patient deterioration, so they can intervene earlier and help improve care outcomes.
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portable ultrasound

Clearance for ultrasound solutions

Philips received an industry-first 510(k) clearance from the FDA to market a wide range of its ultrasound solutions – including CX50 and Lumify – for the management of COVID-19-related lung and cardiac complications. Portable ultrasound solutions in particular have become valuable tools for clinicians treating COVID-19 patients, due to their imaging capabilities, portability and ease of disinfection.
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Acute care and imaging

Flexible critical care capacity

Supporting the increased demand for flexible ICU capacity, Philips introduced its new mobile ICUs in India. The ICUs can be furnished with a range of medical equipment, including ventilators, defibrillators, and patient monitoring. In the Philippines, Philips introduced a modular diagnostic imaging cabin with a CT or diagnostic X-ray system for rapid deployment.
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New teledentistry collaboration

Complementing Philips Sonicare’s existing teledentistry services for patients, Philips and dental technology company Toothpic announced a new teledentistry platform for dental professionals. The multi-service platform provides a tool to build direct patient engagement, acquisition and retention while improving office efficiency, in-chair time and remote care.
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