Dutch technology conglomerate Koninklijke Philips (PHG) reiterated its full-year guidance on Monday as it posted better-than-expected results for its second quarter, which were helped by double-digit comparable sales growth in image-guided therapy and high single-digit comparable growth in ultrasound.
The Amsterdam-headquartered company, which manufactures medical devices and consumer hygiene products, generated sales of 4.67 billion euros ($5.24 billion) in the period. This was up from 4.29 billion euros in the corresponding quarter of the prior year and also ahead of the consensus estimate of analysts polled by Capital IQ for 4.60 billion euros.
Comparable sales growth was 6% while comparable order intake was 8%. Broken down by business segment, sales in the group’s diagnosis and treatment unit were the single biggest revenue generator, with sales of 2.06 billion euros, up from 1.88 billion euros in the corresponding quarter of the prior year. This was buoyed by double-digit comparable growth in image-guided therapy and high-single digit growth in ultrasound while diagnostic imaging remained flat year-on-year.
The connected care business accounted for 1.16 billion euros of sales, up from 1.05 billion euros a year earlier, reflecting mid-single digit comparable growth in monitoring and analytics and sleep and respiration care. Within the personal health business, sales were worth 1.35 billion euros, up from 1.28 billion euros a year earlier. The company said that this reflected high single-digit growth in oral healthcare and mid-single digit growth in personal care and domestic appliances. Other revenue was worth 96 million euros, up from 83 million euros a year earlier.
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