Koninklijke Philips NV 6-K, filed Jan 29, 2024

Koninklijke Philips NV (PHG)

6-K 2024-01-29 For: 2024-01-29

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Added on April 11, 2026

About this 6-K

Koninklijke Philips NV filed this 6-K on January 29, 2024.

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Metrics affected by provisions charged to sales	FY 2023	Q4 2023
Sales - as reported in millions of EUR	18,169	5,062
Comparable sales growth - excluding provisions charged to sales¹⁾	7%	3%
Comparable sales growth	6%	(1)%
Adjusted EBITA margin - excluding provisions charged to sales ¹⁾	10.5%	12.5%
Adjusted EBITA margin	10.6%	12.9%

	Q4 2022	Q4 2023
Sales	5,422	5,062
Nominal sales growth	10%	(7)%
Comparable sales growth¹⁾²⁾	3%	(1)%
Comparable order intake^³⁾	(8)%	(3)%
Income from operations	171	24
as a % of sales	3.2%	0.5%
Financial expenses, net	(78)	(92)
Investments in associates, net of income taxes	(86)	(26)
Income tax (expense) benefit	(120)	132
Income from continuing operations	(113)	38
Discontinued operations, net of income taxes	8	-
Net income	(105)	38
Earnings per common share (EPS)
Income from continuing operations attributable to shareholders^⁴⁾ (in EUR) - diluted	(0.12)	0.04
Adjusted income from continuing operations attributable to shareholders^⁴⁾ (in EUR) - diluted¹⁾	0.39	0.41
Net income attributable to shareholders^⁴⁾ (in EUR) - diluted	(0.11)	0.04
EBITA¹⁾	301	106
as a % of sales	5.6%	2.1%
Adjusted EBITA¹⁾	651	653
as a % of sales²⁾	12.0%	12.9%
Adjusted EBITDA¹⁾	891	896
as a % of sales	16.4%	17.7%

			% change
	Q4 2022	Q4 2023	nominal	comparable^²⁾
Western Europe	1,144	1,163	2%	3%
North America	2,283	2,004	(12)%	(6)%
Other mature geographies	471	408	(13)%	(5)%
Total mature geographies	3,898	3,575	(8)%	(4)%
Growth geographies	1,524	1,486	(2)%	7%
Philips Group³⁾	5,422	5,062	(7)%	(1)%

	Q4 2022	Q4 2023
Beginning cash balance	776	1,155
Free cash flow¹⁾	303	1,128
Net cash flows from operating activities	540	1,310
Net capital expenditures	(237)	(182)
Other cash flows from investing activities	25	64
Treasury shares transactions	(140)	(408)
Changes in debt	240	(57)
Other cash flow items	(60)	(32)
Net cash flows from discontinued operations	28	20
Ending cash balance	1,172	1,869

	September 30, 2023	December 31, 2023
Long-term debt	7,273	7,035
Short-term debt	888	654
Total debt	8,162	7,689
Cash and cash equivalents	1,155	1,869
Net debt	7,007	5,820
Shareholders' equity	12,675	12,028
Non-controlling interests	37	33
Group equity	12,712	12,061
Net debt : group equity ratio¹⁾	36:64	33:67

	January to December
	2022	2023
Sales	17,827	18,169
Nominal sales growth	4%	2%
Comparable sales growth¹⁾²⁾	(3)%	6%
Comparable order intake³⁾	(3)%	(5)%
Income from operations	(1,529)	(115)
as a % of sales	(8.6)%	(0.6)%
Financial expenses, net	(200)	(314)
Investments in associates, net of income taxes	(2)	(98)
Income tax (expense) benefit	113	73
Income from continuing operations	(1,618)	(454)
Discontinued operations, net of income taxes	13	(10)
Net income	(1,605)	(463)
Earnings per common share (EPS)
Income from continuing operations to shareholders^⁴⁾ (in EUR) - diluted	(1.76)	(0.50)
Adjusted income from continuing operations attributable to shareholders^⁴⁾ (in EUR) - diluted¹⁾	0.92	1.25
Net income attributable to shareholders^⁴⁾per common share (in EUR) - diluted	(1.75)	(0.51)
EBITA¹⁾	192	183
as a % of sales	1.1%	1.0%
Adjusted EBITA¹⁾	1,318	1,921
as a % of sales²⁾	7.4%	10.6%
Adjusted EBITDA¹⁾	2,305	2,845
as a % of sales	12.9%	15.7%

	December 31, 2022	December 31, 2023
Long-term debt	7,270	7,035
Short-term debt	931	654
Total debt	8,201	7,689
Cash and cash equivalents	1,172	1,869
Net debt	7,028	5,820
Shareholders' equity	13,249	12,028
Non-controlling interests	34	33
Group equity	13,283	12,061
Net debt : group equity ratio¹⁾	35:65	33:67

	December 31, 2022	December 31, 2023
Non-current assets:
Property, plant and equipment	2,638	2,483
Goodwill	10,238	9,876
Intangible assets excluding goodwill	3,526	3,190
Non-current receivables	279	193
Investments in associates	537	381
Other non-current financial assets	660	619
Non-current derivative financial assets	4	3
Deferred tax assets	2,449	2,627
Other non-current assets	98	93
Total non-current assets	20,429	19,466

Current assets:
Inventories	4,049	3,491
Other current financial assets	11	3
Other current assets	490	500
Current derivative financial assets	123	45
Income tax receivable	222	220
Current receivables	4,115	3,733
Assets classified as held for sale	77	79
Cash and cash equivalents	1,172	1,869
Total current assets	10,259	9,940
Total assets	30,688	29,406

Equity:
Equity	13,249	12,028
Common shares	178	183
Capital in excess of par value	5,025	5,827
Reserves	1,488	879
Other	6,558	5,139
Non-controlling interests	34	33
Group equity	13,283	12,061

Non-current liabilities:
Long-term debt	7,270	7,035
Non-current derivative financial liabilities	4	3
Long-term provisions	1,097	1,035
Deferred tax liabilities	91	71
Non-current contract liabilities	515	469
Non-current tax liabilities	435	390
Other non-current liabilities	60	54
Total non-current liabilities	9,471	9,058

Current liabilities:
Short-term debt	931	654
Current derivative financial liabilities	207	40
Income tax payable	40	83
Accounts payable	1,968	1,917
Accrued liabilities	1,626	1,887
Current contract liabilities	1,696	1,809
Short-term provisions	1,018	1,463
Dividend payable		11
Liabilities directly associated with assets held for sale	-	9
Other current liabilities	448	414
Total current liabilities	7,934	8,287
Total liabilities and group equity	30,688	29,406

	Common shares	Capital in excess of par value	Fair value through OCI	Cash flow hedges	Currency translation differences	Retained earnings	Treasury shares at cost	Total shareholders' equity	Non-controlling interests	Group equity
			reserves			other

Balance as of January 1, 2022	177	4,646	(344)	(25)	1,117	9,344	(476)	14,438	36	14,475
Total comprehensive income (loss)			(32)	23	749	(1,527)		(786)	4	(782)
Dividend distributed	3	326				(741)		(412)	(6)	(418)
Transfer of gain on disposal of equity investments at FVTOCI to retained earnings			(1)			1		-		-
Purchase of treasury shares						-	(24)	(24)		(24)
Re-issuance of treasury shares		(43)				(28)	77	7		7
Forward contracts						76	(140)	(64)		(64)
Share call options						5	(12)	(6)		(6)
Cancellation of treasury shares	(2)					(298)	299
Share-based compensation plans		95						95		95
Income tax share-based compensation plans		1						1		1
Balance as of December 31, 2022	178	5,025	(376)	(2)	1,866	6,832	(275)	13,249	34	13,283

Balance as of January 1, 2023	178	5,025	(376)	(2)	1,866	6,832	(275)	13,249	34	13,283
Total comprehensive income (loss)			(17)	8	(604)	(488)		(1,101)	1	(1,100)
Dividend distributed	8	741				(816)		(68)	(3)	(70)
Transfer of gain on disposal of equity investments at FVTOCI to retained earnings			4			(4)		-		-
Purchase of treasury shares						-		-		-
Re-issuance of treasury shares		(29)				(24)	54	-		-
Forward contracts						465	(608)	(143)		(143)
Share call options
Cancellation of treasury shares	(3)					(563)	566
Share-based compensation plans		88						88		88
Income tax share-based compensation plans		2						2		2
Balance as of December 31, 2023	183	5,827	(390)	6	1,263	5,402	(262)	12,028	33	12,061

	Q4 2023				January to December
	nominal growth	consolidation changes	currency effects	comparable growth	nominal growth	consolidation changes	currency effects	comparable growth
2023 versus 2022
Diagnosis & Treatment	(2.1)%	0.0%	6.7%	4.6%	6.4%	0.2%	4.5%	11.1%
Connected Care	(16.6)%	0.6%	4.8%	(11.2)%	(2.5)%	0.3%	3.3%	1.1%
Personal Health	1.3%	0.0%	5.7%	7.0%	(0.7)%	0.0%	3.9%	3.2%
Philips Group	(6.6)%	0.3%	5.8%	(0.6)%	1.9%	0.2%	3.9%	6.0%

	Philips Group	Diagnosis & Treatment	Connected Care	Personal Health	Other
Q4 2023
Net income	38
Discontinued operations, net of income taxes	-
Income tax expense	(132)
Investments in associates, net of income taxes	26
Financial expenses	109
Financial income	(17)
Income from operations	24	132	(332)	208	16
Amortization and impairment of acquired intangible assets	74	24	45	4	2
Impairment of goodwill	8	8
EBITA	106	163	(287)	211	18
Restructuring and acquisition-related charges	49	15	37	2	(4)
Other items:	498	81	453		(36)
Respironics field-action connected to the anticipated consent decree¹⁾	363		363
Respironics field-action running remediation costs	52		52
Quality remediation actions	100	81	19
Provision for a legal matter¹⁾	31		31
Gain on divestment of business	(35)				(35)
Remaining items	(12)		(11)		(1)
Adjusted EBITA	653	259	203	213	(23)
Depreciation, amortization and impairment of fixed assets and other intangible assets	253	50	82	30	92
Adding back impairment of fixed assets included in Restructuring and acquisition-related charges and Other items	(11)	-	(10)		(1)
Adjusted EBITDA	896	309	275	243	69

January to December 2023
Net income	(463)
Discontinued operations, net of income taxes	10
Income tax benefit	(73)
Investments in associates, net of income taxes	98
Financial expenses	376
Financial income	(63)
Income from operations	(115)	720	(1,199)	552	(188)
Amortization and impairment of acquired intangible assets	290	89	178	14	9
Impairment of goodwill	8	8	-
EBITA	183	816	(1,020)	567	(179)
Restructuring and acquisition-related charges	381	118	115	9	140
Other items:	1,358	92	1,275	22	(32)
Respironics litigation provision	575		575
Respironics field-action connected to the anticipated consent decree¹⁾	363		363
Respironics field-action running remediation costs	224		224
Quality remediation actions	175	81	94
Provision for a legal matter¹⁾	31		31
Investment re-measurement loss	23			23
Gain on divestment of business	(35)				(35)
Remaining items	2	11	(12)	(1)	3
Adjusted EBITA	1,921	1,026	369	597	(71)
Depreciation, amortization and impairment of fixed assets and other intangible assets	971	217	267	101	385
Adding back impairment of fixed assets included in Restructuring and acquisition-related charges and Other items	(47)	(4)	(14)		(30)
Adjusted EBITDA	2,845	1,239	623	698	284

Q4 2022
Net income	(105)
Discontinued operations, net of income taxes	(8)
Income tax benefit	120
Investments in associates, net of income taxes	86
Financial expenses	92
Financial income	(14)
Income from operations	171	186	(97)	173	(91)
Amortization and impairment of acquired intangible assets	104	46	51	4	3
Impairment of goodwill	27		27
EBITA	301	232	(19)	177	(88)
Restructuring and acquisition-related charges	117	18	49	10	39
Other items:	233	60	158	(6)	22
Respironics field-action provision	85		85
Respironics field-action running remediation costs	63		63
Provision for a legal matter	60	60
Remaining items	26	-	10	(6)	22
Adjusted EBITA	651	311	188	180	(28)
Depreciation, amortization and impairment of fixed assets and other intangible assets	277	62	71	28	116
Adding back impairment of fixed assets included in Restructuring and acquisition-related charges and Other items	(37)	1	(13)	0	(24)
Adjusted EBITDA	891	373	245	208	64

January to December 2022
Net income	(1,605)
Discontinued operations, net of income taxes	(13)
Income tax benefit	(113)
Investments in associates, net of income taxes	2
Financial expenses	258
Financial income	(58)
Income from operations	(1,529)	538	(2,347)	515	(235)
Amortization and impairment of acquired intangible assets	363	115	226	15	8
Impairment of goodwill	1,357		1,357
EBITA	192	652	(764)	531	(227)
Restructuring and acquisition-related charges	202	3	125	11	62
Other items:	925	133	750	(4)	46
Respironics field-action provision	250		250
Respironics field-action running remediation costs	210		210
R&D project impairments	134	73	59	3
Portfolio realignment charges	109		109
Provision for a legal matter	60	60
Quality remediation actions	59		59
Impairment of assets in S&RC	39		39
Remaining items	63	-	24	(6)	46
Adjusted EBITA	1,318	788	111	538	(119)
Depreciation, amortization and impairment of fixed assets and other intangible assets	1,239	302	420	117	400
Adding back impairment of fixed assets included in Restructuring and acquisition-related charges and Other items	(252)	(83)	(136)	(3)	(30)
Adjusted EBITDA	2,305	1,008	394	652	250

	FY 2023	Q4 2023
Sales - as reported	18,169	5,062
Comparable sales growth - excluding sales provisions¹⁾	7%	3%
Comparable sales growth - as reported	6%	(1)%
Adjusted EBITA margin - excluding sales provisions ¹⁾	10.5%	12.5%
Adjusted EBITA margin - as reported	10.6%	12.9%
Order intake growth	mid-single-digit decline	low-single-digit decline
Operating cash flow	2,175	1,349

	2022				2023
	January-March	January-June	January-September	January-December	January-March	January-June	January-September	January-December
Sales	3,918	8,095	12,405	17,827	4,167	8,636	13,107	18,169
Nominal sales growth	2%	0%	2%	4%	6%	7%	6%	2%
Comparable sales growth¹⁾	(4)%	(5)%	(5)%	(3)%	6%	8%	9%	6%
Comparable order intake ²⁾	5%	3%	(1)%	(3)%	0%	(4)%	(6)%	(5)%
Gross margin	1,511	3,243	4,973	7,194	1,755	3,717	5,650	7,448
as a % of sales	38.6%	40.1%	40.1%	40.4%	42.1%	43.0%	43.1%	41.0%
Selling expenses	(1,066)	(2,181)	(3,338)	(4,621)	(1,079)	(2,191)	(3,304)	(4,524)
as a % of sales	(27.2)%	(26.9)%	(26.9)%	(25.9)%	(25.9)%	(25.4)%	(25.2)%	(24.9)%
G&A expenses	(155)	(301)	(476)	(671)	(158)	(315)	(465)	(608)
as a % of sales	(4.0)%	(3.7)%	(3.8)%	(3.8)%	(3.8)%	(3.6)%	(3.5)%	(3.3)%
R&D expenses	(493)	(979)	(1,590)	(2,091)	(528)	(996)	(1,441)	(1,890)
as a % of sales	(12.6)%	(12.1)%	(12.8)%	(11.7)%	(12.7)%	(11.5)%	(11.0)%	(10.4)%
Income from operations	(181)	(170)	(1,700)	(1,529)	(583)	(362)	(139)	(115)
as a % of sales	(4.6)%	(2.1)%	(13.7)%	(8.6)%	(14.0)%	(4.2)%	(1.1)%	(0.6)%
Net income	(151)	(171)	(1,500)	(1,605)	(665)	(591)	(501)	(463)
Income from continuing operations attributable to shareholders³⁾ per common share in EUR - diluted	(0.17)	(0.19)	(1.64)	(1.76)	(0.72)	(0.64)	(0.54)	(0.50)
Adjusted income from continuing operations attributable to shareholders³⁾ per common share in EUR - diluted¹⁾	0.15	0.29	0.53	0.92	0.21	0.50	0.83	1.25
EBITA¹⁾	(107)	(15)	(109)	192	(510)	(218) ^{4 )}	77	183
as a % of sales	(2.7)%	(0.2)%	(0.9)%	1.1%	(12.2)%	(2.5)%	0.6%	1.0%
Adjusted EBITA¹⁾	243	459	667	1,318	358 ^{4 )}	811 ^{4 )}	1,268	1,921
as a % of sales	6.2%	5.7%	5.4%	7.4%	8.6%	9.4%	9.7%	10.6%
Adjusted EBITDA¹⁾	488	948	1,414	2,305	575	1,256	1,949	2,845
as a % of sales	12.5% ^{4 )}	11.7%	11.4%	12.9%	13.8%	14.5%	14.9%	15.7%
Number of common shares outstanding (after deduction of treasury shares) at the end of period (in thousands)	869,298	885,316	885,348	881,481	881,539	920,085	915,987	906,403
Shareholders' equity per common share in EUR	16.64	16.63	16.31	15.03	13.99	13.18	13.84	13.27
Net debt : group equity ratio¹⁾	28:72	31:69	34:66	35:65	36:64	37:63	36:64	33:67
Total employees at end of period	78,548	78,831	79,097	77,233	73,712	71,519	70,741	69,656

Koninklijke Philips NV 6-K, filed Jan 29, 2024

About this 6-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN ISSUER

KONINKLIJKE PHILIPS N.V.

Royal Philips

The Netherlands

Breitner Center, Amstelplein 2, 1096 BC Amsterdam, The Netherlands

Q4 2023

Philips delivers strong full-year results; agrees with FDA on terms of consent decree focused on Philips Respironics in the US

FY and Q4 Group performance highlights

Roy Jakobs, CEO of Royal Philips:

Philips Respironics consent decree

Outlook

Segment performance

Productivity

Customer, innovation and ESG highlights

Capital allocation

Conference call and audio webcast

Fourth-quarter highlights

Philips performance

Performance per segment

Diagnosis & Treatment

Connected Care

Personal Health

Other

Proposed dividend distribution

Full-year highlights

Philips performance

Performance per segment

Diagnosis & Treatment

Connected Care

Personal Health

Other

Forward-looking statements and other important information

Forward-looking statements

Israel

Respironics

Third-party market share data

Market Abuse Regulation

Use of non-IFRS information

Presentation

Condensed consolidated statements of income

Condensed statements of comprehensive income

Condensed consolidated balance sheets

Condensed consolidated statements of cash flows

Condensed consolidated statements of change in equity

Reconciliation of non-IFRS information

Philips statistics

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