AMSTERDAM: Royal Philips NV reported profit that beat analysts’ estimates, saying the lingering impact of the coronavirus and changes in the way health-care is delivered will boost demand for its medical gear in coming years.
The Dutch maker of diagnostic gear and toothbrushes reported a 32% jump in earnings before interest, taxes and amortisation to 769mil (US$900mil) in the third quarter, it said yesterday.
That beat an average estimate of 630.6mil.
Having got a Covid-19 boost from heightened demand for its ventilators, Philips predicted an acceleration in average annual sales growth to 5% to 6% from 2021 to 2025, driven by demand for monitors as well as equipment to enable medical staff to care for patients at home.
While the focus remains on acute pandemic care, hospitals are now pushing ahead with surgery and other medical procedures that were put on hold, chief executive officer Frans van Houten said in a Bloomberg interview.Van Houten still expects a “modest” gain in sales growth in 2020, although the order book remains solid.
Next year, growth is expected to be in the low-single-digits, driven by diagnosis and treatment as well as personal health, partly offset by lower connected care sales.
Philips invested more than 100mil on quadrupling ventilator production in just five months amid an ongoing battle to save hospitalised sufferers of the coronavirus. — Bloomberg
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