China enables Phillips to obtain strong growth in Q3
Despite selling off its lighting division in 2016, Dutch company Phillips’ healthcare focus has seen it go from strength to strength. Gaining strong results in its third quarter rising by up to 12% to €532 million before interest, taxes and amortization (EBITA). Sales have also risen up to approximately 5%, with its net income rising by over 20%.
A number of companies are shifting their focus towards the healthcare market, which is showing increased potential and openness towards new technologies and medical devices which will support the delivery of patient centered care worldwide.
"We are very optimistic about our opportunities in China," Phillips’ Chief Executive Frans van Houten has said.
"Our toothbrushes continue to sell very well, while the growth of private hospitals diminishes the risk of government preferring domestic suppliers."
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“Philips’ performance in the third quarter demonstrates that we continue to deliver on our plan,” Chief Executive Frans van Houten added. “Despite ongoing global uncertainties, our outlook for 2017 remains unchanged.”
Nonetheless, sales growth in Europe and North America in comparison has decreased significantly, however.
Although famed for its focus on lightbulbs, televisions and consumer electricals, Philipps is increasingly moving into the healthcare market. Since 2015, it has undergone up to 10 acquisitions within this area.
From image-guided therapy, such as its acquisition of Volcano, The Spectranetics Corporation and CardioProlific Inc, it has placed significant focus on areas such as health and wellness, health management and informatics, and technologies to support medical professionals to deliver exceptional patient diagnostics.