Philips profit misses estimates as inflation pressures continue

ROYAL Philips's lowered its sales guidance as inflationary pressures and supply chain troubles led it to miss earnings estimates in the second quarter.

Philips said it now saw 2022 sales growth of as much as 3 per cent, down from an earlier estimate of as much as 5 per cent. Second-quarter adjusted earnings before interest, taxes and amortisation was 216 million euros (S$305 million), the Dutch maker of medical gear said on Monday (Jul 25). The result missed an average estimate of 347.7 million euros in a Bloomberg survey of analysts

Philips reported an organic sales decline of 7 per cent for the second quarter.

On top of supply chain struggles, Philips faces about 300 court cases following product issues over noise-dampening foam inside ventilators that treat sleep apnea. Users allege inhaling the foam after it disintegrates poses a cancer risk. The company started its first recall of the potentially faulty devices last June and has made financial provisions of around 885 million euros. BLOOMBERG