Royal Philips has posted strong sales growth and margin expansion in its second quarter.
Philips said that its cost management and robust productivity initiatives resulted in savings in the period (end-June 30) of 197 million euros ($228 million), and noted that it is on track to achieve its three-year, 2.5-billion-euro ($2.9 billion) goal of 800 million euros ($924 million) in productivity savings in 2025.
Group sales for the quarter were 4.3 billion euros ($5 billion). Income from operations for the period was 400 million euros ($462 million).
The company's Diagnosis & Treatment business saw a comparable sales decrease of 1% in the second quarter.
Philips has updated its outlook for the year to include the anticipated effect of tariffs, noting that the outlook will "continue to be dynamic." The firm reiterated its comparable sales growth range to be 1% to 3%, with sequential improvement anticipated. These new figures include an estimated tariff impact of 150 to 200 million euros ($173.2 million to $231 million) after substantial mitigations.
In other Philips news, the company has signed a long-term multiyear partnership with Indonesia’s Ministry of Health to provide access to its Azurion image-guided therapy system across all 38 provinces of the nation.
The project is part of the Strengthening Indonesia’s Healthcare Referral Network (SIHREN) initiative, aimed at expanding access in the country to treatment for heart disease, stroke, and cancer.
