On January 12, Koninklijke Philips N.V. (PHG) disclosed updates on its fourth quarter and full-year 2021 financial results. Consequently, the stock nosedived in the premarket session to trade at $33.09 apiece, at the last check.
In the previous market session, PHG stock added a small value of 1.15% at its close of $38.77. Following the announcement, the stock had lost a huge 14.65% in the premarket at the time of writing.
The technology company, Koninklijke Philips N.V. works in the healthcare, lighting, and consumer well-being markets. Currently, the Netherlands-based company has a market capitalization of $33.15 billion with its 883.9M shares outstanding.
PHG’s Q4 and FY2021 Financial Performance
According to today’s announcement, PHG expects EUR 4.9 billion (approx.) in group sales for the fourth quarter of 2021. This is lower than the company’s previous expectations. Hence, this marks a comparable sales decrease of 10%. Further, the reason for this decrease is global supply chain shortages in addition to the postponement of customer equipment installations. Moreover, the previously announced Philips Respironics recall was also a major reason for the decline.
Added to this, the sale decline and higher supply costs have led the expected group adjusted EBITA to be EUR 650 million approx. (13% of sales) for the Q4 2021.
Resultantly, the expected full-year 2021 group sales are now EUR 17.2 billion approx., marking a comparable sales decline of 1%.
In addition, PHG expects a full-year 2021 adjusted group EBITA of around EUR 2.1 billion (12% of sales approx.).
Furthermore, the company intends to declare the complete financial results for the fourth quarter and full-year 2021 on January 24, 2022.
Cancellation of 33.5M Shares
On December 29, the company announced the completion of the cancellation of its 33.5 million shares. Currently, the company’s issued share capital amounts to EUR 176,7779,793.80 for its 883,898,969 common shares.
The canceled shares of PHG included:
- 20.5 million shares under the completed EUR 1.5 billion shares repurchase program started in Q1 2019.
- 13.0 million shares under the ongoing EUR 1.5 billion buyback program announced in July 2021.
PHG’s Partnership with IJsselland Hospital
On December 29, a 12-year strategic partnership with IJsselland Hospital was announced by the company. According to the partnership, PHG will work on improving the care for patients as well as care providers in the hospital and its vicinity. With a focus on innovation, digitalization, and optimization, the collaboration also includes the purchase of systems and solutions like CT and MRI.
