Philips (PHG 34.40, +1.75) has jumped 5.4% in pre-market after beating first quarter earnings expectations.
The Dutch conglomerate reported above-consensus earnings of EUR0.25 per share on a 3.8% year-over-year increase in revenue to EUR5.72 billion, which matched expectations.
Groupwide comparable sales increased 2.0% while comparable sales in the HealthTech portfolio grew 3.0% year-over-year.
Personal Health sales grew 7.0% year-over-year to EUR1.72 billion while comparable sales grew 5.0%. The growth rate was driven by high-single-digit growth in Sleep & Respiratory Care and Health & Wellness and mid-single-digit growth in Domestic Appliances. Demand was the strongest in Middle East & Turkey, Latin America, and Central & Eastern Europe. Adjusted EBITDA margin improved to 15.6% from 14.1% one year ago.
Diagnosis & Treatment revenue increased 5.0% to EUR1.49 billion while comparable sales increased 2.0%. Diagnostic Imaging, Ultrasound, and Image-Guided therapy sales increased in the low-single-digits. The growth in sales was driven by strong demand in China and Latin America, which was partially offset by declines in Central & Eastern Europe and Middle East & Turkey. Adjusted EBITDA margin grew to 4.2% from 2.3% one year ago.
Connected Care & Health Informatics sales increased 5.0% to EUR732 million. Low-single-digit growth in Patient Care & Monitoring Solutions was partially offset by a low-single-digit decline in Healthcare Informatics, Solutions & Services. Double-digit growth in China was partially offset by a double-digit decline in India and Middle East & Turkey. Adjusted EBITDA margin slipped to 3.6% from 3.9% one year ago.
Lighting sales were unchanged year-over-year at EUR1.69 billion. Double-digit decline in Lamps was offset by double-digit growth in LED & Home and low-single-digit growth in Professional. LED lighting sales represent 61.0% of total Lighting sales after growing 19.0% in the first quarter. Adjusted EBITDA margin improved to 8.5% from 7.2%.
The company has not changed its outlook for the full year, expecting to generate comparable sales growth between 4.0% and 6.0% with a 100-basis point improvement in adjusted EBITDA margin.