Philips reported a 3 percent increase in sales in the first quarter compared to the same period last year, reaching 5.5 billion euros, with earnings before interest, taxes, and amortization (EBITA) rising by 14 percent to 374 million euros. However, net profit in the first quarter amounted to 37 million euros…
The Dutch company Philips achieved sales growth in the last quarter, but its profit sharply fell due to tax costs incurred after the spin-off of its lighting business.
Philips reported a 3 percent increase in sales in the first quarter compared to the same period last year, reaching 5.5 billion euros, with earnings before interest, taxes, and amortization (EBITA) rising by 14 percent to 374 million euros.
However, net profit in the first quarter amounted to 37 million euros, a decline from 100 million euros achieved in the same period a year earlier. The profit was “mainly affected by tax costs related to the spin-off,” Philips stated in its business report.
The company added that the process of separating Philips’ lighting division is “on the right track.”
– This process is still ongoing, we are evaluating various offers, and considering a possible initial public offering (IPO), we have always emphasized that we will reach a conclusion in the second quarter of this year and hope to do so soon, said Philips CEO Frans van Houten to CNBC.
– If we look at the results in the first quarter, we have a 3 percent growth, thanks to a 5 percent increase in the healthcare division. In the lighting division, we had a 27 percent growth in LED lighting, so both sides of the house had very good improvements in operational profit, he added.
