Philips(US:PHG)2022-07-25 14:48Q2 2022 Financial Performance - Philips' sales were 42 billion EUR, a 7% comparable decline, but a 3% decline excluding China, compared to Q2 2021[16] - China lockdowns significantly impacted Philips, with sales and order intake down by approximately 30% in China[16] - The adjusted EBITA margin was 52% of sales, compared to 126% in Q2 2021, primarily due to lower volumes and inflation[16] - Operating cash outflow was 306 million EUR, mainly due to temporarily higher inventories[16] Order Intake and Backlog - Order intake grew by 1%, and excluding China, order intake grew by 6%[16] - The company achieved solid order growth and an all-time high order book[21] Respironics Recall and Market Outlook - Philips Respironics expects to remediate around 55 million devices[47] - The company aims to have around 90% of the recall program units produced and shipped by the end of 2022[50] - Respironics sleep systems sales are projected to be approximately 02 billion EUR in 2022 and rebound to approximately 06 billion EUR by 2025, compared to 07 billion EUR in 2019[59] - Total Respironics sales are expected to be approximately 14 billion EUR in 2022 and reach approximately 21 billion EUR by 2025, compared to 21 billion EUR in 2019[59] Productivity and Cost Savings Initiatives - Philips is stepping up productivity initiatives to 05 billion EUR per year, aiming to deliver 20 billion EUR in the 2022-2025 period[88] - The company's Sustaining Engineering in India delivered 40 million EUR in savings in 2021 and is projected to deliver 60 million EUR in 2022[92] 2022 Outlook - Philips expects comparable sales growth of 6-9% in H2 2022[32] - The company anticipates an adjusted EBITA margin of approximately 10% for the full year 2022[32]