Philips Reports Q2 Earnings, Posts Mixed Segment Results, Announces €1.5B Share Buyback - Koninklijke Philips (NYSE:PHG)

Koninklijke Philips NV PHG reported second-quarter FY21 sales growth of 6% year-on-year to €4.23 billion.
Comparable sales grew 9% Y/Y, representing double-digit growth in the Personal Health businesses and Diagnosis & Treatment businesses, partly offset by a double-digit decline in the Connected Care businesses.
The comparable order intake decreased by 15%, with double-digit growth in the Diagnosis & Treatment businesses, which was more than offset by a double-digit decline in the Connected Care businesses.
The Diagnosis & Treatment businesses posted 16% comparable sales growth Y/Y with double-digit growth in all businesses. The comparable order intake rose 29% Y/Y, with strong double-digit growth in Image-Guided Therapy, Ultrasound, and Diagnostic Imaging. The adjusted EBITDA for the segment was 13.2%.
The comparable sales in the Connected Care businesses declined 16% Y/Y. The adjusted EBITDA was 11.3%.
The Personal Health businesses recorded a comparable sales growth of 33% Y/Y, driven by double-digit growth across every business. The adjusted EBITDA was 17%.
The consolidated adjusted EBITA expanded 280 basis points to 12.6%, driven by sales growth and productivity measures.
It recorded an EPS of €0.16.
The adjusted EBITDA expanded 210 basis points to 18%.
Philips generated €332 million in operating cash flow.
It held €1 billion in cash and equivalents.
The company launched a €1.5 billion share buyback program.
Outlook: Philips’ FY21financial outlook remains within its guided range for low-to-mid-single-digit comparable sales growth. Adjusted EBITA margin improvement of 60 basis points, versus prior outlook for improvement of 60-80 basis points.
Price action: PHG shares traded lower by 4.13% at $45.96 in the premarket session on the last check Monday.

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