Philips reported a strong set of Q1 numbers – a second consecutive quarterly beat attributed to easing supply chain challenges and productivity improvements, thanks to the recently-unveiled turnaround plan. Segment-wise, D&T and CC reported growth, partly offset by a weaker PH. Moreover, the clarity from the management on the litigation provisions was reassuring. Overall, our positive recommendation/re-rating story remains intact.

24 Apr 2023
Strong Q1; long-awaited re-rating is underway

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Strong Q1; long-awaited re-rating is underway
Philips reported a strong set of Q1 numbers – a second consecutive quarterly beat attributed to easing supply chain challenges and productivity improvements, thanks to the recently-unveiled turnaround plan. Segment-wise, D&T and CC reported growth, partly offset by a weaker PH. Moreover, the clarity from the management on the litigation provisions was reassuring. Overall, our positive recommendation/re-rating story remains intact.