Philips Healthcare, D&T BU, Q3 2019 Sales Results

Philips Healthcare published it’s latest quarterly results yesterday which include sales figures for its Diagnosis and Treatment (D&T) business unit. This unit encompasses the companies portfolio of medical imaging platforms, image-guided therapy solutions as well as healthcare informatics. The financial results indicate that sales growth continued and accelerated during the third quarter. Nominal sales revenue for the D&T segment during Q3 2019 reached €2,117 million, compared with €1,868 million in Q3 2018, an increase of +13.3% year-on-year (YoY). On a calendar year-to-date basis, nominal sales revenue reached €5,902 million which represents sales growth of +9.7% YoY.

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The recent growth was predominately driven by a combination of increasing sales from image-guided therapy products as well as ultrasound imaging systems. Both of these segments have been achieving double-digit or high-single-digit sales growth across consecutive quarters. In contrast, sales revenue from the diagnostic imaging portfolio contracted at the start of the year, although recovered during the third quarter, resulting in overall growth within the low-single-digit range. Sales results have varied significantly by geography, with higher growth rates being driven by the emerging markets including China and Latin America, which have been growing at double-digits so far this year. Sales revenue from North America was flat at the start of the year, however, activity has steadily increased to reach sales growth in the mid-to-high single-digit range. Sales revenue from Western Europe contracted at the start of the year, amidst macroeconomic uncertainties, although revenues began to grow again in the low-single-digit range in the subsequent quarters.

Image-Guided Therapy Segment

The image-guided therapy portfolio encompasses the companies range of interventional x-ray imaging systems. This includes the Zenition series of mobile c-arm systems as well as the Allura series of fixed surgical x-ray systems. The portfolio also represents the recent acquisitions of Volcano and EPD solutions. These acquisistions added specialist catheters for intravascular ultrasound (IVUS) and fractional flow reserve (FFR) to its product line-up as well as a proprietary cardiac imaging and navigation system, a diagnostic and treatment tool for cardiac arrhythmias. Recent quarterly comparable sales growth for the segment has been as follows:

  • 2019 Q3: high-single-digit growth (Philips results)
  • 2019 Q2: double-digit sales growth (Philips results)
  • 2019 Q1: double-digit sales growth (Philips results)

Ultrasound Segment

The ultrasound portfolio consists of the companies range of ultrasound imaging platforms focused on diagnosis, treatment planning and guidance for cardiology, general imaging, women’s health and point-of-care clinical applications. It also includes proprietary software capabilities embedded onto ultrasound platforms, such as QLAB, a specialist quantification tool for cardiac analysis. Recent quarterly comparable sales growth for the segment has been as follows:

  • 2019 Q3: double-digit sales growth (Philips results)
  • 2019 Q2: high-single-digit sales growth (Philips results)
  • 2019 Q1: mid-single-digit sales growth (Analyst estimate)

Diagnostic Imaging Segment

The diagnostic imaging portfolio consists of the companies extensive range of medical imaging platforms across the modalities; magnetic resonance (MRI), computed tomography (CT), advanced molecular and diagnostic x-ray for general radiography and fluoroscopy. It also includes integrated clinical solutions, which encompasses radiation oncology treatment planning, disease-specific oncology solutions and x-ray dose management. Recent quarterly comparable sales growth for the segment has been as follows:

  • 2019 Q3: high-single-digit growth (Philips results)
  • 2019 Q2: flat growth (Philips results)
  • 2019 Q1: mid-single-digit decline (Philips results)

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Upcoming OEM results:

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