Circular revenues -- that is, those generated by a business model that aims to reduce waste and pollution -- comprised nearly one-quarter of Philips' sales in 2024, according to the company's new annual report.
Circularity practices are increasingly being embedded into the company's aims, Philips said, as well as responsible take-back on all professional medical equipment in 2025 and zero waste-to-landfill. Philips' EcoHeroes models are targeted to account for 25% of hardware revenues and, in its report, the company said it planned to further expand EcoDesign activities moving forward.
Elsewhere, for the year (ending December 31, 2024), Philips highlighted:
- Total sales of 18 billion euros ($18.8 million) in 2024, down 1% from 18.2 billion euros ($19 million) in 2023.
- Sales of goods at 12.2 billion euros ($12.8 billion) in 2024 were more than double that of services at 5 billion euros ($5.2 billion). Sales of services rose 2% over 2023.
- Gross margin of 7.8 billion euros ($8.2 billion) was up 5.4% from 7.4 billion ($7.7 billion) in 2023.
- Positive income from operations was 529 million euros ($553.2 million) in contrast to a loss of 115 million euros ($120.3 million) in 2023. Net income losses, however, grew to 698 million euros ($730 million), compared with 463 million euros ($484.2 million) in 2023.
- Sales from the company's diagnosis and treatment segment fell 24 million euros ($25.1 million) in 2024 to 8.8 billion euros ($9.2 billion) for the time period. North America comprised 7.7 billion euros ($8.1 billion) in sales in the segment, compared with 4 billion euros ($4.2 billion) in Western Europe. Precision diagnosis comprised 59% (diagnostic imaging 40%, ultrasound 19%) of total sales, with image-guided therapy at 41%.
Find the full report here.
