Philips Reports Increased Losses amid Weak Demand and Legal Settlements

Philips expects higher losses in 2024 because of reduced Chinese market demand and settlements with customers about defective medical equipment.

The Dutch medtech corporation Philips announced that its 2024 financial losses rose by 33.6% from €463 million to €698 million. Low Chinese demand and continuously active court settlements about defective sleep apnea devices created two main factors driving down Philips' profits. Total revenue rose beyond $18 billion but the company only gained minimal 1% in nominal sales while delivering earnings per share which fell below expectations by $0.01.

Roy Jakobs the CEO of Philips stated that declining Chinese market demand stands as a major challenge due to Chinese government anti-corruption initiatives that affect medical device firms from abroad. The market changes in China have triggered both consumer and health system demand to decline therefore causing sales to drop dramatically.

The Chinese market difficulties affect Philips alongside the Respironics sleep apnea device recall that promises to cost the company $1.1 billion throughout the first half of 2025. The organization declared plans to restructure while minimizing expenses through employee layoff procedures expected to reach $835 million.

Although optimistic about markets beyond China Philips remains under the threat of macroeconomic events and China’s enduring business hurdles for its 2025 projection.