Philips Cuts Sales Growth Forecast Due to Slowdown in China

Dutch medical device manufacturer Philips has revised its sales growth expectations for 2024 due to a decline in demand from China. The company reported a 2% decrease in order intake for the third quarter.

The updated forecast anticipates comparable sales growth for 2024 to be between 0.5% and 1.5%, representing a significant drop from the previously expected range of 3% to 5%. Despite the lower sales outlook, Philips maintains an optimistic view on profitability, expecting to achieve an adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) of 11.5%, which aligns with the upper limit of previous projections.

This adjustment marks the latest development in Philips' performance trajectory, highlighting the impact of fluctuating market demands in China on global companies.