PHG - Philips falls as supply chain woes and product recall impact 1Q topline

Philips (NYSE:PHG) ADRs have lost ~13% in the pre-market on Monday after the Dutch health equipment company reported ~4% decline in its comparable sales for 1Q 2022 amid supply issues and an ongoing recall of its certain respiratory care devices. While the group sales for the quarter reached EUR 3.9 billion, the loss from continuing operations jumped ~347% YoY to EUR 152.0 billion. The comparable sales of the Connected Care division, which houses the respiratory care business, fell 21% YoY, mainly due to the recall. “….we recorded better than expected sales of EUR 3.9 billion in very challenging circumstances, with significant supply chain headwinds as well as the consequences of the Respironics field action,” Chief executive Frans van Houten said. The company expects its sales and profitability to recover in 2H 2022. However, the risks from COVID-19 situation in China, the Ukraine war, supply chain issues and inflationary pressures could jeopardize the outlook,

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Philips falls as supply chain woes and product recall impact 1Q topline