Philips could spin-off small appliance division by mid-2021
Philips is turning its attention even more on medical and health equipment and therefore wants to get rid of the part of the company that makes household appliances like coffee machines and air-fryers, the Dutch electronics company announced with its annual figures on Tuesday.
Over the past years, Philips increasingly started specializing in making medical equipment. The company already privatized its division that made lamps and lighting and placed it on the stock market.
The Domestic Appliances division is very successful and was good for 2.3 billion euros in turnover last year, but it does not fit well with the company's future plans, the company said. Philips plans to split this division off within the next 18 months.
"The Domestic Appliances business has significantly contributed to Philips, but it is not a strategic fit for our future as a health technology leader, as we choose to further sharpen our focus along the health continuum and invest in our consumer health and professional healthcare-related businesses," Philips CEO Frans van Houten said.
Last year Philips' turnover increased by 7.5 percent to nearly 19.5 billion euros. The company made a profit of nearly 1.2 billion euros, an increase of 7 percent compared to 2018..