RYLPF - Koninklijke Philips N.V. (PHG) Q4 2023 Earnings Call Transcript
2024-01-29 07:31:02 ET
Koninklijke Philips N.V. (PHG)
Q4 2023 Earnings Conference Call
January 29, 2024 04:00 AM ET
Company Participants
Leandro Mazzoni - Head-Investor Relations
Roy Jakobs - Chief Executive Officer
Abhijit Bhattacharya - Chief Financial Officer
Conference Call Participants
Hassan Al-Wakeel - Barclays
David Adlington - JPMorgan
Richard Felton - Goldman Sachs
Veronika Dubajova - Citi
Lisa Clive - Bernstein
Graham Doyle - UBS
Sezgi Ozener - HSBC
Julien Dormois - Jefferies
Presentation
Leandro Mazzoni
Hi, everyone. Welcome to Philips' Fourth Quarter and Full Year 2023 Results Webcast. I'm here today with our CEO, Roy Jakobs; and our CFO, Abhijit Bhattacharya. The press release, investor decks and the frequently asked questions on the Respironics field action were published on our Investor Relations website this morning. The replay and full transcript of this webcast will be made available on the website after the call.
Before we start, I want to draw your attention to our Safe Harbor statement on screen. You will also find the statement in the presentation published on our website. In today's call, we will discuss our results as well as the progress on the actions we're taking across different areas to drive performance improvement.
I would like to hand over to Roy.
Roy Jakobs
Good morning. Welcome. Great to be with you today. I want to start with the key highlights of this morning's release. We delivered a year of strong sales growth, improved profitability and very strong cash flow.
The improved operational performance is a result of the solid execution of our plan to create value with sustainable impact. We are making progress on all our three priorities; enhancing patient safety and quality; strengthening supply chain reliability; and simplifying our operating model, supporting significant productivity and margins.
Patient safety and quality remain our highest priority across the company. We agree with the FDA on the terms of a consent decree focused on Philips Respironics in the US, which provides clarity and a road map for us to demonstrate compliance and restore the business.
We are confident in delivering the previously stated plan for 2023 to 2025, which now takes the consent decree into account and remains unchanged, although recognizing uncertainties remain in a volatile geopolitical environment. Based upon our ongoing actions to enhance execution, we expect further performance improvement in 2024.
On to the key financial highlights. Comparable sales growth was 7% in the full year, excluding the impact of provisions charged to sales mainly in connection with the Respironics consent decree, which we will explain later in the call. Sales growth was 11% in D&T, 5% in Connected Care and 3% in Personal Health.
Group comparable sales growth, including the impact of the provisions mainly in connection with the Respironics consent decree was 6% for the full year. The adjusted EBITA margin was 10.5% in the full year, excluding the impact of the provisions mainly in connection with the Respironics consent decree. This is a strong improvement of 310 basis points versus 2022....
Koninklijke Philips N.V. (PHG) Q4 2023 Earnings Call Transcript