Koninklijke Philips N.V. (NYSE:PHG) Q4 2023 Earnings Call Transcript

Julien Dormois: Crystal clear. Thanks.

Roy Jakobs: Thank you.

Operator: Thank you, gentlemen, that was the last question. Please continue.

Roy Jakobs: Okay. Thank you all for your questions. Think reiterating, I think the key messages of today. We came out with our full year results, where if you compare to where we started the year and the guidance of the plan, we had a strong beat on sales where we did 7% versus a guidance of low single-digit, where we had a profit improvement of 310 bps, which actually was high single-digit target and we delivered 10.5 and we had a cash flow target of €700 million to €900 million, where we did €1.6 billion. That was on the back of strong execution of our plan, where we focus on patient safety and quality, supply chain and the operating model. Now we continue to execute that plan. That also gives us the confidence into 2024, where we said that actually we give you a range of 3% to 5% of sales growth as our target then 11% to 11.5% profit improvement.

So we continue our trajectory as well on profit and then a strong cash generation of €800 million to €1 billion. We also provide you with clarity on the consent decree, which I think is a very important milestone that we have all been longing for. And also what the important message there is on one hand we have now a road map to comply tools to restore the business. But most importantly that actually we stay fully committed to the plan that we have and the financial guidance that we put out there that now includes the full consequences of the consent decree. And actually therefore, we are kind of now building from that in terms of further delivery of the plan. So we’re looking forward to further dialogue around how we progress. We will remain focused on executing our plan and delivering continuous improvement.

Thank you so much for dialing in and looking forward to talk to you soon.