The Dutch medical technology group Royal Philips reported a net loss of 334 million euros in the fourth quarter of 2024 due to a high tax burden, after the company had made a profit of 39 million euros in the previous period. Philips sees the main reason in a tax effect of 449 million euros, which offset a tax gain of 132 million euros from the previous year.

Overall, comparable sales in 2024 increased by 1 percent. However, subdued consumption and weak demand in China led to a double-digit decline in this important market. For 2025, Philips is targeting only 1 to 3 percent growth, with business in China even expected to decline by a mid-to-high single-digit percentage. A noticeable decline in sales is expected in the first three months, mainly due to continued moderate demand in China and the expiration of some licensing agreements.

On the profit side, the adjusted earnings before interest, taxes, and amortization (EBITA) amounted to 679 million euros—slightly below market expectations of 683 million euros, but above the previous year's figure of 653 million euros. The adjusted EBITA margin for 2024 was 11.5 percent, right at the upper end of the previous forecast range. For the current year, the group now plans a slight margin improvement to 11.8 to 12.3 percent. Total sales fell to 18.02 billion euros for the entire year (previous year: 18.17 billion euros), of which 5.04 billion euros were generated in the fourth quarter.

In view of our innovation pipeline and focus on consistent implementation, we see good long-term prospects for profitable growth," said CEO Roy Jakobs. To reduce costs, Philips is raising its savings target for 2023 to 2025 from 2.0 to 2.2 billion euros - with 800 million euros to be achieved by 2025 alone. The dividend remains unchanged at 85 cents per share.