Philips Annual Report 2023 (2024)

Creating value with sustainable impact

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2023 was a year of many challenges, as well as considerable progress, with continued strong focus on patient safety and quality, supply chain reliability, and performance improvement.

Roy Jakobs

CEO Royal Philips

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Philips 2023 annual results

The year at a glance

18.2

billion
EUR

sales

comparable sales growth

10.6%

Adjusted EBITA margin

1.88

billion

lives improved

20%

circular revenues

~69,700

employees

View our charts and historical results

Our strategy and businesses

As a focused leader in health technology, we aim to create value with sustainable impact based on focused organic growth and scalable patient- and people-centric innovation, with improved execution as key value driver.

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Customer impact and innovation

The technological and business model innovation that Philips brings to healthcare – often as part of long-term partnerships – is critical, making care delivery more effective, efficient and sustainable.

Customer partnership to improve patient safety, quality and outcomes

Building lifetime healthy habits

Recognition for innovation progress

Centralized patient monitoring to support bedside care

Progress towards our goals

Lives improved

At Philips, we are striving to make the world healthier and more sustainable through innovation, with the goal of improving the lives of 2.5 billion people a year by 2030. This includes improving access to care in underserved communities for 400 million people a year.

To ensure we remain on track to achieve this goal, we have developed a model, audited externally, that tells us how many lives have been improved by our products and solutions in a given year.

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1.88

2.5

Lives improved

221

400

Lives improved in underserved communities

100% of new product introductions designed in line with our EcoDesign requirements

70.5%

25% sales from products and services that contribute to circularity

20%

75% operations powered by renewable energy

78%

95% circular materials management ²

91%

100% industrial sites sending zero waste to landfill

100%

5% reduction in water consumption from 2019 level

All data points refer to 2023
¹ Revenue from current green/EcoDesigned products and solutions² Recycling, reuse and circular materials management of the total used materials

Environmental sustainability targets

Reflecting our commitment to SDG 12 (Sustainable consumption and production) and SDG 13 (Climate action), we have set specific targets – to be achieved by 2025 – to reduce our environmental impact and help fight climate change. Here you can see how we’re progressing towards these goals.

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Sustainability highlights

In 2023, we made further advances in the focal areas of climate action, circular economy and access to care.

Philips showcases world’s first mobile MRI system with helium-free operations at RSNA23

Champalimaud Foundation in Portugal partners with Philips to reduce its diagnostic imaging carbon footprint by 50% in five years

Campaign for refurbished products highlights Philips’ increasing focus on circular solutions

Securing a Greener Grid: Philips, HEINEKEN, Nobian and Signify power European operations with clean electricity thanks to new wind energy initiative

Philips achieves high position in LexisNexis sustainable innovation ranking

Charts and historical results

Statement of income

Profitability

Balance sheet

Cash flow

Key figures per share

Ratios

ESG

Tax

Total tax contributions

in millions of EUR	2021	2022	2023
Total tax contributions	4,090	3,469	3,051

Composition of tax contributions

in millions of EUR	2021	2022	2023
Corporate income tax paid	818	362	52
Customs duties	169	144	127
Value Added Tax	821	664	737
Payroll taxes	2,133	2,174	2,021
Other taxes	149	124	115

[maintitle]

in millions of EUR	2021	2022	2023
Net cash provided by operating activities	1,629	(173)	2,136
Net capital expenditures	(729)	(788)	(554)
Free cash flow	900	(961)	1,582

Organic Return on Invested Capital (in %)

%	2021	2022	2023
Philips Group	14.7%	6.3%	10.3%

Return on total assets (in %)

%	2021	2022	2023
Philips Group	1.8%	(5.0)%	(0.39)%

R&D investment as a % of sales

%	2021	2022	2023
Philips Group	10.5%	11.7%	10.4%

Net debt : group equity ratio

	2021	2022	2023
Philips Group	24:76	35:65	33:67

Comparable sales growth (in %)

%	2021	2022	2023
Diagnosis & Treatment	8.3%	(0.8)%	11.1%
Connected Care	(19.0)%	(9.1)%	1.1%
Personal Health	8.8%	0.1%	3.2%
Philips Group	(1.2)%	(2.8)%	6.0%

Sales

in millions of EUR	2021	2022	2023
Diagnosis & Treatment	7,825	8,290	8,818
Connected Care	5,371	5,268	5,138
Personal Health	3,429	3,626	3,602
Other	530	643	612
Philips Group	17,156	17,827	18,169

Income from operations

in millions of EUR	2021	2022	2023
Diagnosis & Treatment	948	538	720
Connected Care	(716)	(2,347)	(1,199)
Personal Health	576	515	552
Other	(255)	(235)	(188)
Philips Group	553	(1,529)	(115)

Adjusted EBITA

in millions of EUR	2021	2022	2023
Diagnosis & Treatment	1,028	788	1,026
Connected Care	553	111	369
Personal Health	590	538	597
Other	(117)	(119)	(71)
Philips Group	2,054	1,318	1,921

Income (loss) from continuing operations

in millions of EUR	2021	2022	2023
Philips Group	612	(1,618)	(454)

Net income (loss)

in millions of EUR	2021	2022	2023
Philips Group	3,323	(1,605)	(463)

Income from operations as a % of sales

as a % of sales	2021	2022	2023
Diagnosis & Treatment	12.1%	6.5%	8.2%
Connected Care	(13.3)%	(44.6)%	(23.34)%
Personal Health	16.8%	14.2%	15.3%
Philips Group	3.2%	(8.6)%	(0.6)%

Adjusted EBITA as a % of sales

as a % of sales	2021	2022	2023
Diagnosis & Treatment	13.14%	9.5%	11.6%
Connected Care	10.3%	2.1%	7.2%
Personal Health	17.2%	14.8%	16.6%
Philips Group	12.0%	7.4%	10.6%

Balance sheet

in millions of EUR	2021	2022	2023
Total assets	30,961	30,688	29,406
Total liabilities	16,486	17,405	17,345
Group equity	14,475	13,283	12,061

Employees in FTE at year-end

	2021	2022	2023
Diagnosis & Treatment	29,094	30,335	28,397
Connected Care	21,047	19,241	17,549
Personal Health	10,134	9,319	9,085
Other	17,913	18,337	14,626
Philips Group	78,189	77,233	69,656

Engagement index (in % of positive score)

% positive score	2021	2022	2023
Philips Group	79	77	73

Female executives (in % of total)

in % of total	2021	2022	2023
Philips Group	25	24	25

Lost Workday Injuries (per 100 FTEs)

per 100 FTEs	2021	2022	2023
Diagnosis & Treatment	0.28	0.21	0.28
Connected Care	0.09	0.09	0.13
Personal Health	0.16	0.09	0.09
Other	0.12	0.08	0.09
Philips Group	0.16	0.11	0.12

Total recordable cases (per 100 FTEs)

	2021	2022	2023
Diagnosis & Treatment	0.53	0.41	0.43
Connected Care	0.31	0.19	0.27
Personal Health	0.24	0.27	0.21
Other	0.21	0.17	0.18
Philips Group	0.29	0.23	0.24

Fatalities

	2021	2022	2023
Philips Group	0	0	0

Green Revenues (in EUR millions)

in millions of EUR	2021	2022	2023
Diagnosis & Treatment	6,702	7,245	7,112
Connected Care	2,547	2,252	2,924
Personal Health	2,846	3,278	2,723
Other			52
Philips Group	12,095	12,774	12,811

Green Revenues (as a % of total sales)

	2021	2022	2023
Diagnosis & Treatment	85.6	87.4	0.8
Connected Care	47.4	42.7	0.6
Personal Health	83.0	90.4	0.8
Other			0.1
Philips Group	0.7	0.7	0.7

Green Innovation (in EUR millions)

in millions of EUR	2021	2022	2023
Diagnosis & Treatment	96	93	78
Connected Care	32	31	29
Personal Health	65	40	33
Other	4	4	2
Philips group	197	168	142

Operational carbon footprint for logistics (in tonnes CO2-equivalent)

	2021	2022	2023
Air freight	252,104	213,562	168,153
Road freight	54897.4402924577	27,275.6	26,393
Sea freight	38,997	22,149.6	23,552
Parcel freight	70962.5839535206	63,810.56	86,988
Philips Group	416961.024245978	326,797.76	305,086

Total energy consumption (in MWh)

	2021	2022	2023
Total energy consumption	524,100	496,600	457,576

Operational energy efficiency (in MWh per EUR million sales)

in MWh/million EUR sales	2022	2023
Philips Group	28	25

Total energy consumption in manufacturing (in MWh)

in gigawatt hours	2021	2022	2023
Diagnosis & Treatment	175,278	169,893	166,461
Connected Care	44,722	41,509	39,523
Personal Health	130,834	126,738	116,548
Philips Group	350,834	338,140	322,532

Water withdrawal (in thousands of m³)

in thousands of m³	2021	2022	2023
Diagnosis & Treatment	337	310	324
Connected Care	119	111	99
Personal Health	247	257	238
Philips Group	703	678	661

Zero waste to landfill (in tonnes)

	2021	2022	2023
Philips Group	19	1	2.7

Materials recirculated (Circular Materials Management) per total waste (in %)

	2021	2022	2023
Philips Group	87	91	91

Hazardous substances emissions (in kilos)

	2021	2022	2023
Diagnosis & Treatment	181	175	158
Connected Care	1,239	863	781
Personal Health	1,242	510	362
Philips Group	2,662	1,548	1,300

VOC emissions (in tonnes)

	2021	2022	2023
Diagnosis & Treatment	42	38	34
Connected Care	3	2	2
Personal Health	33	37	38
Philips Group	78	77	74

ISO 14001 certification (as a % of all reporting organizations)

%	2021	2022	2023
Philips Group	92	96	96

Creating value with sustainable impact

Based on the International Integrated Reporting Council framework, we use various resources to create value with sustainable impact for our stakeholders.

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FAQs

What is the annual revenue of Philips in 2023? ›

Koninklijke Philips annual revenue for 2023 was $19.664B, a 4.69% increase from 2022.

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What is the sales of Philips 2023? ›

In 2023, Philips generated around 18.2 billion euros in revenue, the highest annual revenue for the company since 2014. In 2012, revenue amounted to 23.46 billion euros, the highest figure in the provided time interval.

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What is the annual turnover of Philips? ›

According to Philips's latest financial reports the company's current revenue (TTM ) is $19.64 B. In 2022 the company made a revenue of $18.78 B a decrease over the years 2021 revenue that were of $19.94 B.

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What is the annual profit of Philips? ›

Koninklijke Philips annual gross profit for 2023 was $8.061B, a 6.35% increase from 2022. Koninklijke Philips annual gross profit for 2022 was $7.58B, a 10.62% decline from 2021. Koninklijke Philips annual gross profit for 2021 was $8.48B, a 15.45% decline from 2020.

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Who is the largest shareholder of Philips? ›

Exor NV

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Why is Philips stock dropping? ›

The Amsterdam-based company has already lost around 70% of its market value in the past two years, as it continues to grapple with the fallout of a global recall of millions of respirators used to treat sleep apnea.

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Why did Philips decline? ›

I can tell you that Philips has been dying as a tech company for decades, in the 80's/90's it started to go downhill. Why? They cut on R&D in the Netherlands and internationally. They started to buy other companies (like medical diagnostic equipment) instead of developing technology.

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Is Philips a good company to invest in? ›

PHG is a Zacks Rank #2 (Buy) stock, with a Value Style Score of A and VGM Score of A. Shares are currently trading at a forward P/E of 17.2X for the current fiscal year compared to the Medical - Products industry's P/E of 21.6X. Additionally, PHG has a PEG Ratio of 1.4 and a Price/Cash Flow ratio of 9.4X.

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What is the biggest source of revenue for Philips? ›

Our health care business makes up 42% of our global sales revenue. With a century of history and more than 450 innovative products and services, we are ready to meet today's challenges in healthcare by creating solutions that deliver better care to more people at lower cost.

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Who bought over Philips? ›

In 2021, Philips Domestic Appliances was purchased by Hillhouse Capital for $4.4 Billion. In 2022, Philips announced that Frans Van Houten, who had served as CEO for 12 years would be stepping down, after a key product recall cut the company's market value by more than half over the previous year.

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What are the results of Philips in 2024? ›

Koninklijke Philips (AMS:PHIA) First Quarter 2024 Results

Revenue: €4.14b (flat on 1Q 2023).
Net loss: €1.00b (loss widened by 51% from 1Q 2023).
€1.10 loss per share (further deteriorated from €0.72 loss in 1Q 2023).

May 1, 2024

Who owns Philips? ›

Ownership: Philips Electronics North America is a subsidiary of Royal Philips Electronics (formerly known as Philips Electronics N.V.), headquartered in the Netherlands. Philips Electronics N.V. is a publicly owned company traded on the New York and Amsterdam Stock Exchanges.

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Is Philips a big company? ›

Philips is a Dutch electronics company founded by Frederik and Gerard Philips in 1891. The company has grown into a large global conglomerate with a market value of more than 18 billion U.S. dollars.

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How many employees does Philips have in the US? ›

In 2022, Philips had around 18.1 thousand employees in North America, while 16.9 thousand Philips employees were based in Western Europe.

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What is the net income of Philips in 2023? ›

Koninklijke Philips net income for the twelve months ending September 30, 2023 was $-0.563B, a 182.29% decline year-over-year. Koninklijke Philips annual net income for 2023 was $-0.504B, a 70.23% decline from 2022. Koninklijke Philips annual net income for 2022 was $-1.694B, a 143.15% decline from 2021.

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What is the annual revenue of Phillips Industries? ›

Phillips Industries is an industry leader with 80,495 employees and an annual revenue of $300.0M that is headquartered in Santa Fe Springs, CA.

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What is the revenue forecast for Philips? ›

Koninklijke Philips Revenues and Earnings Miss Expectations

Looking ahead, revenue is forecast to grow 4.9% p.a. on average during the next 3 years, compared to a 7.0% growth forecast for the Medical Equipment industry in Europe. Performance of the market in the Netherlands.

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What is Phillips 66 revenue by year? ›

Phillips 66 revenue for the twelve months ending March 31, 2024 was $148.814B, a 11.53% decline year-over-year. Phillips 66 annual revenue for 2023 was $147.399B, a 13.29% decline from 2022. Phillips 66 annual revenue for 2022 was $169.99B, a 52.49% increase from 2021.