Category: Press Releases

October 12, 2022

Amsterdam, the Netherlands – Royal Philips (NYSE: PHG, AEX: PHIA), a global leader in health technology, today provided an update on its third-quarter 2022 financial results and full-year outlook. The company will report the final results on October 24, 2022.

Group sales and profitability
Philips’ financial performance in the third quarter was largely impacted by continued supply chain challenges that were more significant than anticipated in the quarter, impacting deliveries and customer installations. As a result, sales for the Group are expected to be approximately EUR 4.3 billion with a comparable sales decline of approximately 5%. Philips’ Diagnosis & Treatment businesses are expected to show a low-single-digit comparable sales decline and the Connected Care businesses a mid-teen decline, while the Personal Health businesses are expected to show mid-single-digit comparable sales growth. As a consequence of the lower sales, Group Adjusted EBITA for the quarter is expected to be approximately EUR 210 million or approximately 5% of sales.

On the back of strong 47% comparable order intake growth in the third quarter of last year, Philips’ comparable order intake in the third quarter of 2022 declined approximately 6%. The book-to-bill ratio remained strong at 1.18 and the equipment order book grew further in the quarter.

Goodwill impairment charge
Philips expects to record a EUR 1.3 billion non-cash charge in the third quarter for the impairment of goodwill of its Sleep & Respiratory Care business (Philips Respironics) due to revisions to the financial forecast of this business. The drivers for the revised forecast include current assumptions regarding the estimated impact of the proposed consent decree and changes to the pre-tax discount rate.

Actions to improve performance and resulting charges
Philips is accelerating productivity initiatives and other actions to mitigate the ongoing headwinds, that will be further detailed on October 24, 2022. As a consequence of the earlier announced initiative to enhance productivity in R&D by shifting the focus to fewer and better resourced projects in the innovation pipeline, Philips expects to record a non-cash charge in the third quarter of approximately EUR 165 million.

Outlook
Looking ahead, Philips still expects a better second half of the year, compared to the first half of 2022. However, the company sees prolonged supply chain disruptions and a worsening macro-environment. Consequently, Philips now expects a mid-single-digit comparable sales decline for the fourth quarter of 2022 with a high-single-to-double-digit adjusted EBITA margin range.

Conference call and audio webcast
Philips will host a conference call for investors and analysts from 08:30 – 09:00 am CET today to discuss the third-quarter financial performance update.

Comparable sales exclude the effect of currency movements and acquisitions and divestments (changes in consolidation). Philips believes that comparable sales information enhances understanding of sales performance.
Adjusted EBITA is defined as Income from operations (EBIT) excluding amortization of acquired intangible assets, impairment of goodwill and other intangible assets, restructuring charges, acquisition-related costs and other one-time charges and gains.

For further information, please contact:

Ben Zwirs
Philips Global Press Office
Tel.: +31 6 15213446
E-mail: ben.zwirs@philips.com

Derya Guzel
Philips Investor Relations
Tel.: +31 20 59 77055
E-mail: derya.guzel@philips.com

About Royal Philips
Royal Philips (NYSE: PHG, AEX: PHIA) is a leading health technology company focused on improving people’s health and well-being, and enabling better outcomes across the health continuum – from healthy living and prevention, to diagnosis, treatment and home care. Philips leverages advanced technology and deep clinical and consumer insights to deliver integrated solutions. Headquartered in the Netherlands, the company is a leader in diagnostic imaging, image-guided therapy, patient monitoring and health informatics, as well as in consumer health and home care. Philips generated 2021 sales of EUR 17.2 billion and employs approximately 79,000 employees with sales and services in more than 100 countries. News about Philips can be found at www.philips.com/newscenter.

Forward-looking statements
This release contains certain forward-looking statements with respect to the financial condition, results of operations and business of Philips and certain of the plans and objectives of Philips with respect to these items. Examples of forward-looking statements include statements made about the strategy, estimates of sales growth, future EBITA, future developments in Philips’ organic business and the completion of acquisitions and divestments. By their nature, these statements involve risk and uncertainty because they relate to future events and circumstances and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these statements.

This press release contains inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.

Food systems reform is needed to ensure provision of vitamin and minerals globally.

GENEVA, Oct. 11, 2022 (GLOBE NEWSWIRE) — Research published today in Lancet Global Health indicates that 1 in 2 preschool-aged children and 2 in 3 women of reproductive age worldwide are affected by vitamin and mineral deficiencies (often referred to as “hidden hunger”). For decades it was widely believed that 2 billion suffer from this hidden hunger. But these new findings on just women and young children—who make up just one-third of the total population worldwide—suggest the number is far larger once all the school-age children, adolescents, men, and older adults excluded from this analysis due to data gaps are included. The research, “Micronutrient deficiencies among preschool-aged children and women of reproductive age worldwide” was a collaborative project led by the Global Alliance for Improved Nutrition (GAIN), through the USAID Advancing Nutrition project, along with a team of global micronutrient experts, including an Advisory Panel brought together by the Micronutrient Forum. Each step of the analysis was vetted through a formal process and then the paper went through rigorous peer review in a leading global health journal.

Lynnette Neufeld, Director of Food and Nutrition Division at the Food and Agriculture Organization of the United Nations (FAO), said, “Diets that don’t provide the right levels of vitamins and minerals can compromise your immune system, impair your cognition and school performance, decrease your work productivity, and may contribute to risks of non-communicable diseases such as heart problems. This is a widespread problem, impacting individuals, families and communities everywhere in the world, although particularly in lower-income countries.”

Micronutrient deficiencies are highest in lower-income countries because diets often lack a diversity of nutrient-rich foods and tend to rely on a large share of calories from rice, wheat, maize or similar staple foods. In fact, 9 in 10 women in several countries in South Asia and Sub-Saharan Africa are deficient. However, deficiencies are surprisingly high even in high-income countries. In the U.S. and the U.K., for example, between one-third and one-half of women of reproductive age are deficient in one or more micronutrients. In high-income countries, this is likely the result of diets high in processed but micronutrient-poor foods rather than reliance on a single staple as in many lower-income countries.

According to Saskia Osendarp, Executive Director, Micronutrient Forum, “There are very clear solutions. We need to ensure everyone has access to a variety of micronutrient-dense foods, including animal-source foods, dark green leafy vegetables and beans, lentils or peas. Food fortification can help make up the difference when healthy diets are unaffordable or accessible. Health programs can provide supplements to those with extra needs, such as pregnant women and malnourished children.”

It might sound simple, but realizing these solutions is not easy because our food systems are not fit for purpose, and increasingly less so. These issues have existed for a long time—and urgently need to be addressed. The issues are now exacerbated by the long-term impact of climate change, the lasting damage to supply chains caused by the pandemic and the war in Ukraine, and the imminent economic downturn, all coming together to create major challenges.

Many solutions are already available. Accessibility and affordability can be addressed by prioritizing productivity and diversity of a variety of nutritious crops and livestock, developing crops that are more nutritious and drought-resilient (“biofortification”), reducing trade and transportation costs and improving markets. Those in situations of vulnerability often require direct assistance through social protection programmes, such as cash transfers and subsidies for micronutrient-dense foods.

GAIN’s Executive Director Lawrence Haddad concluded, “This new paper is a game changer. Hidden hunger is likely to affect nearly half the people on the planet, not a quarter as we had previously and rather complacently assumed. In particular, our failure to nourish the youngest will undermine public health and haunt us socially, economically, environmentally and politically down the generations. All corners of society, led by governments, need to tackle the burden of hidden hunger, via all the channels available. Personally, these findings throw down the gauntlet to GAIN and to all organisations working for a world without malnutrition. We all have to work together and rise to the challenge.”

This study was made possible by the generous support of the American people through the United States Agency for International Development (USAID). The contents are the responsibility of Global Alliance for Improved Nutrition (GAIN) and JSI Research & Training Institute, Inc. (JSI), and do not necessarily reflect the views of USAID or the United States government.

-ends-

Contact Information:
Edwin Shankar
Media Relations
edwin.shankar@leidar.com

This content was issued through the press release distribution service at Newswire.com.

Almost one in five Australians set to do most or all of their grocery shopping online within two years

Spryker’s Australia Online Grocery Report 2022

Spryker research finds almost two thirds of Australian consumers order groceries online, with 10% doing most or all of their food shopping via the internet

MELBOURNE, Australia, Oct. 11, 2022 (GLOBE NEWSWIRE) — Spryker, the leading platform for Enterprise Marketplaces, Thing Commerce, and Unified Commerce, has today launched its Australian Online Grocery Report 2022. The research of 2,500 Australian consumers finds almost half – 48% – of Australians buy least some of their groceries online, with 10% now ordering most or all of their groceries via the internet. In total, 23% of Australian household food budgets is now spent ordering online. The research, conducted by Spryker in partnership with market research firm Appinio, surveyed consumers from across Australia on their experiences and opinions of grocery shopping.

With the Australian grocery market currently valued at $125bn, there is substantial opportunity for retailers offering services in online grocery shopping. In fact, almost one in five respondents (18%) said they see themselves buying most or all of their groceries online within two years. Currently, shoppers in the 25-44 age group are most likely to order online and spend the highest percentage of their grocery budget online compared to other age groups. However, those in older age groups (45-65) match the younger groups in terms of the total amount spent online – despite this being a lower overall percentage of their grocery budgets. Respondents in the 55-65 age bracket were most likely to cite the desire to avoid crowded supermarkets and thus minimize the risk of contracting Coronavirus as a motivation for shopping online.

A “pleasant” in-store experience
Despite the market expanding, online retailers face one key hurdle – 75% of respondents’ grocery budgets are being spent offline and 88% of shoppers see in-store supermarket shopping as something pleasant. This is significantly more positive than US sentiment. An equivalent Spryker survey on American online groceries from December 2021 found only 55% of US shoppers thought in-store shopping was a pleasant experience. Even in the mature online grocery market of Germany, 73% of shoppers said they found shopping in-store pleasant according to Spryker’s German survey from July 2022.

“Our latest research has shown that Australian shoppers are most focused on lower costs and better product selection when it comes to buying online. Given that the in-store shopping experience is a positive one for the majority of shoppers, tempting them to buy more groceries online will pose a challenge for many retailers. But it’s also a huge opportunity,” commented Boris Lokschin, Co-Founder and CEO at Spryker. “Retailers that are working with composable commerce solutions will be best prepared to grab market share in this sophisticated and dynamic grocery market. Their focus must be on delivering a seamless online shopping experience that exceeds consumers’ expectations, and with a best-of-breed approach, retailers can have the flexibility to adjust to changing customer needs. Whether offering wider product choices, flexible delivery and collection options, or uniting with on-demand delivery partners, the Australian online grocery market has significant growth potential for organizations willing to provide a top digital commerce experience.”

The online winners and offline losers
Looking at who misses out when shoppers made more online purchases, 22% of respondents reported heavy cuts to their spending in health food stores, while a further 15% reduced spending at local farm shops and open-air markets. Surprisingly, only 4% reported spending less at supermarkets. Drilling into this, the duopoly between Coles and Woolworths, both of whom have significantly invested in their unified commerce experiences – enabling them to offer flexible in-store, online, curb-side pick-up and home delivery easily – accounts for the minimal reduction in spending at supermarkets over any channel.

Meanwhile, 10% of shoppers also said they bought markedly less at discount retailers. Therefore, an opportunity exists for these discount retailers, with 87% of respondents saying they would do more food shopping online if prices were lower. Given that only 4.4% of the Australian population lives more than 20 minutes from a supermarket, lower pricing could help to grow online buying for discount retailers and tempt people away from supermarkets within their 20-minute radius. Beyond price, consumers can potentially be lured away from mainstream supermarkets by a wide range of service factors including easier user interfaces (75% likely or very likely), wider product ranges (77%), better availability nearby (78%), and faster delivery (76%).

Another category that could benefit from improved digital commerce experiences are local retailers. Many consumers would like to see their local suppliers offering online options: a full 40% want to order from local markets and farmers online. In addition, 25% of respondents think that organic shops should be online. When asked which specific provider they would like to see online, 12% of respondents mentioned Perth-located Farmer Jack’s, making this Western-Australia-based provider of regional, local, and organic food the fifth-most frequent answer given – a strong showing, particularly given that only 11% of Australians live in the state.

Amazon unable to stand out 
Despite Amazon’s significant investment in the online grocery market – both globally and in Australia, only 42% of Australian consumers cited Amazon when given a list of online food delivery operators and asked which ones they recognized. Meanwhile, 84% of survey respondents recognized Uber Eats, and 77% recognized Menulog; Doordash followed in third place with 75% brand recognition, with Deliveroo fifth at 66%. Looking beyond just recognition, 62% of respondents said they use Uber Eats (24% regularly) and 31% are Deliveroo customers (8% regularly) highlighting how well established those two brands have become in Australia.

The full Australian Online Grocery Report 2022 is available https://www.efoodinsights.com/australia-online-grocery-report/

Methodology
The Australian Online Grocery Report 2022 is based on a study run by Appinio and digital commerce platform provider Spryker in mid-2022. Appinio asked 2,500 respondents a range of detailed questions about their experiences of online grocery shopping to date and their opinions regarding it. The result is the largest and most detailed set of data currently available about online food shopping habits in Australia. Survey participants were between 16 and 65 years of age (average age: 39.5) and lived in Australia at the time at which they took part; 21.6% lived in towns or areas with fewer than 50,000 inhabitants, while 25.7% were in towns with a population of up to 250,000. 13.5% of respondents resided in smaller cities (250,000 to 750,000), with 39.2% in the country’s five largest conurbations Sydney, Melbourne, Perth, Brisbane, and Adelaide.

About Appinio
Hamburg-based Appinio is the global market research platform which enables companies to source thousands of opinions from specific target audiences worldwide – in just a few minutes. For the first time, everyone can validate decisions and ideas in real-time with representative results from consumers. As the fastest solution for market research, Appinio delivers feedback from 90+ markets. More than 1000 companies from all industries use Appinio’s comprehensive platform to become more agile and customer-centric. Customers include VW, Unilever, Netflix, Gorillas, Bertelsmann, Warner Brothers, Samsung, Jägermeister, Red Bull and About You as well as all major agencies and management consultancies. Appinio has received several awards, including the Top European Business Startup at the Pioneers Festival, the Best of Mobile and the Best of Hamburg Award. Jonathan Kurfess, Founder and CEO of Appinio, belongs to Forbes 30 under 30 in Europe 2020.

About Spryker
Spryker is the leading composable commerce platform for enterprises with sophisticated business models to enable growth, innovation, and differentiation. Designed specifically for sophisticated transactional business, Spryker’s easy-to-use, headless, API-first model offers a best-of-breed approach that provides businesses the flexibility to adapt, scale, and quickly go to market while facilitating faster time-to-value throughout their digital transformation journey. As a global platform leader for B2B and B2C Enterprise Marketplaces, Thing Commerce, and Unified Commerce, Spryker has empowered 150+ global enterprise customers worldwide and is trusted by brands such as ALDI, Siemens, Hilti, and Ricoh. Spryker was recognized by Gartner^® as a Visionary in the 2022 Magic Quadrant for Digital Commerce and was also ranked as a Strong Performer in The Forrester Wave: B2B Commerce Solutions, Q2 2022. Spryker is a privately held technology company headquartered in Berlin and New York. Find out more at https://spryker.com

Contact details:
press@spryker.com

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/ded391b8-7033-469a-a7be-b6aad81b9c88