Philips suffered €698 million loss last year, mainly over $1.1 billion recall settlement
Philips ended 2024 deep in the red, suffering a loss of 698 million euros, the health tech company announced on Wednesday. It attributed the loss mainly to a 1.1 billion dollar settlement made in America over the long-dragging recall of its sleep apnea devices.
Philips achieved a turnover of 18.0 billion euros in 2024, a comparable sales growth of 1 percent. The company saw a “double-digit decline” in sales in China, but more sales in the rest of the world, particularly in Western Europe, kept the turnover drop limited.
CEO Roy Jakobs is satisfied with the year. “We strengthened our fundamentals and resolved significant US litigation relating to the Respironics recall,” he said. The 1.1 billion dollar settlement was approved in December. “Despite double-digit declines in demand in both consumer and health systems in China, we returned to positive order growth and continued to drive margin expansion and cash-flow generation.”
The company is continuing the reorganization it announced two years ago, cutting 6,000 jobs worldwide including 1,100 in the Netherlands. Philips hopes to save costs and simplify its business processes.
The company thinks its turnover will grow by 1 to 3 percent this year. Philips expects fewer sales in China again this year, partly due to U.S. president Donald Trump’s trade war on the country. The company did not mention Trump’s latest plans for a 25 percent levy on foreign cars, chips, and medicines. It is not yet clear whether Philips’ medical equipment will be included in that.
