Koninklijke Philips N.V (NYSE:PHG) Q3 2023 Earnings Call Transcript October 23, 2023 4:00 AM ET

Company Participants

Leandro Mazzoni - Head of IR

Roy Jakobs - CEO

Abhijit Bhattacharya - CFO

Conference Call Participants

Hassan Al-Wakeel - Barclays

David Adlington - JPMorgan

Richard Felton - Goldman Sachs

Lisa Clive - Alliance Bernstein

Robert Davies - Morgan Stanley

Veronika Dubajova - Citi

Hugo Solvet - BNP Paribas

Graham Doyle - UBS

Sezgi Bice Ozener - HSBC

Falko Friedrichs - Deutsche Bank

Operator

Welcome to the Royal Philips Third Quarter 2023 Results Conference Call on Monday, October 23, 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 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's third quarter 2023 results webcast. I have here with me, our CEO, Roy Jakobs; and our CFO, Abhijit Bhattacharya. The press release and slide deck as well as the 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.

I would like to hand over to Roy.

Roy Jakobs

Good morning, everyone, and welcome to the webcast. Before we go into the numbers, I want to say that our hearts go out to everyone affected by the terrible events ongoing in the Middle East. As of today, I'm thankful to report that all our colleagues based in the region are currently safe.

Now starting the key highlights for Q3. We delivered another quarter of improved operational performance with strong 11% sales growth, doubling our profitability and strong cash flow. The improvements were across all business segments and all regions and the result of our ongoing actions to strengthen execution. We are making progress on all our three priorities: enhancing patient safety and quality; strengthening supply chain reliability; and establishing a simplified more agile operating model, supporting our productivity and our margins.