Philips delivers on Q1 results, with ongoing order intake growth

Core Insights - The company reported a 2% decline in comparable sales, primarily due to significant declines in China, while showing growth in Personal Health outside of China [5][10] - Order intake increased by 2%, driven by strong performance in North America, despite challenges in the Chinese market [4][10] - The adjusted EBITA margin decreased by 80 basis points to 8.6%, influenced by lower sales, although partially offset by higher gross margins from innovations [6][10] Group and Segment Performance - Comparable order intake rose by 2%, with North America showing strong momentum, while China experienced a decline [4][10] - Group comparable sales decreased by 2%, with double-digit declines in all segments in China, but slight growth in Personal Health in other markets [5][10] - Diagnosis & Treatment sales fell by 4%, impacted by a high comparison base and declines in China, while Image-Guided Therapy maintained strong performance [7][10] Financial Performance - Income from operations increased to EUR 154 million, while free cash flow showed an outflow of EUR 1,091 million, largely due to a significant payment related to the Philips Respironics recall [6][10] - Productivity initiatives yielded savings of EUR 147 million in Q1, contributing to a target of EUR 800 million in savings for 2025 [12] Innovation and Technology - Philips was recognized as the leading applicant in medical technology at the European Patent Office in 2024, highlighting its commitment to innovation [9] - New AI technologies were introduced to enhance imaging and patient outcomes, with significant advancements in MRI and ultrasound systems [15] Outlook - The company updated its full-year 2025 outlook, factoring in the impact of announced tariffs, with an estimated net tariff impact of EUR 250-300 million [13][16] - The outlook for comparable sales growth remains unchanged at 1%-3%, with expectations for modest improvement in Q2 compared to Q1 [16]