Koninklijke Philips N.V. (PHG) Q2 2023 Earnings Call Transcript

For the period ending June 30, 2023

July 24, 2023 4:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Welcome to the Royal Philips Second Quarter and Semi-annual 2023 Results Conference Call on Monday, July the 24th, 2023. During the call, hosted by Mr. Roy Jakobs, CEO, and Mr. Abhijit Bhattacharya, CFO, all participants will be in a listen-only mode. After the introduction, there'll be an opportunity to ask questions. Please note that this call will be recorded and replay will be available on the Investor Relations website of Philips -- of Royal Philips.

I will now hand the conference over to Mr. Leandro Mazzoni, Head of Investor Relations. Please go ahead, sir.

Leandro Mazzoni

Hi everyone. Welcome to Philips’ second quarter and half year 2023 results webcast. I have here with me our CEO, Roy Jakobs and our CFO, Abhijit Bhattacharya. The second quarter and half year press release and slide deck, as well as the frequently asked questions and deck on the Respironics recall were published on our Investor Relations website this morning. The replay and full transcript of this webcast will be made available on the website as well.

Before we start, I want to draw your attention to our safe harbor statement on screen. You will also find the statement in the presentation published on our Investor Relations website. In today's call, we will discuss our results as well as the progress on the actions we're taking across different areas to drive performance improvement.

With that, I would like to hand over to Roy.

Roy Jakobs

Thank you, Leandro. Good morning, everyone, and welcome. It's good to be with you. I want to start with the five -- or with the key highlights for this quarter. First, we delivered an improved operational performance with 9% comparable sales growth and improvements in profitability and operating cash flow. The improvements were across the company with all business segments and all regions contributing. These positive results are results from our ongoing actions to strengthen our execution.

Secondly, we are making progress in executing our plan and on our three priorities; enhancing patient safety and quality, strengthening our supply chain reliability which supported our performance in Q4 last year and the first half of this year, and establishing a simplified, more agile operating model supporting our productivity.

Thirdly, resolving the Respironics recall for patients remains our highest priority. The vast majority of the sleep therapy devices are now within the hands of patients and care providers and the complete testing and analysis for sleep devices affected by recall showed positive and reassuring results for patients.