Fourth-quarter highlights
Comparable sales up 2%, driven by 4% growth in the HealthTech portfolio
Currency-comparable order intake up 15%, driven by North America, China and Western Europe
Adjusted EBITA improved 50 basis points to 11.9% of sales and amounted to EUR 842 million
EBITA amounted to EUR 263 million, or 3.7% of sales
Net loss of EUR 39 million, impacted by one-time charges including previously announced pension de-risking, compared to net income of EUR 134 million in Q4 2014
Free cash flow of EUR 740 million, compared to EUR 559 million in Q4 2014
Philips Lighting separation process on track
Full-year highlights
Comparable sales up 2% to EUR 24.2 billion, driven by above 4% growth in the HealthTech portfolio
Currency-comparable order intake up 5%, driven by North America and Western Europe
Adjusted EBITA improved 20 basis points to 9.2% of sales and amounted to EUR 2.2 billion
EBITA totaled EUR 1.4 billion, or 5.7% of sales, compared to EUR 821 million, or 3.8% of sales, in 2014
Net income amounted to EUR 659 million, compared to EUR 411 million in 2014
Free cash flow of EUR 325 million, compared to EUR 497 million in 2014
Return on invested capital increased to 7.0%, compared to 4.5% in 2014
Proposal to maintain dividend at EUR 0.80 per share
Frans van Houten, CEO:
The fourth quarter of 2015 was another quarter in which Philips delivered year-on-year operational improvements. We increased Adjusted EBITA across all three sectors and generated close to EUR 1 billion of cash from operations.
In the fourth quarter, we saw continued sales growth and strong 15% currency-comparable order intake growth in Healthcare, with margins also improving year-on-year. Consumer Lifestyle showed continued robust growth across all businesses, most notably Health & Wellness, while productivity and product mix improvements resulted in significantly higher margins. Lighting again delivered year-on-year performance improvements, driven by sustained comparable sales and margin growth in the LED business and our effective management of the market decline in conventional lamps.
Overall, 2015 was a solid year for Philips, as illustrated by consistent performance improvements in the face of ongoing challenging macroeconomic circumstances. Lighting showed another year of operational improvements, and our HealthTech portfolio, which combines the Healthcare and Consumer Lifestyle businesses, delivered promising comparable sales growth of more than 4% overall for the year, demonstrating our progress in capitalizing on opportunities in this large and growing market. Order intake growth of 5% in Healthcare was encouraging.
For 2016, we continue to expect modest comparable sales growth and we will build on our 2015 operational performance improvement. Taking into account ongoing macro-economic headwinds and the phasing of costs and sales, we expect improvements in the year to be back-end loaded.
Accelerate! and Separation Update
Our Accelerate! program continues to drive strong operational improvements across the organization. In Healthcare, for example, we increased sales of ClarityIQ upgrades for interventional X-ray systems by 50% in 2015 compared to 2013, by automating our system upgrade sales process. In Consumer Lifestyle, we virtually doubled sales on Double 11' day in China compared to 2014, by customizing our propositions and leveraging our digital capabilities. In Lighting, we delivered solid sales growth for Consumer Luminaires in the Benelux and Iberia by adapting the portfolio of this business to locally relevant value propositions.
Philips' three cost savings programs all delivered ahead of plan in 2015. The company achieved EUR 290 million of gross savings in overhead costs, EUR 379 million of gross savings in procurement, and EUR 187 million of productivity savings from the End2End process improvement program.
Philips is on schedule to be able to complete the separation of the Lighting business in the first half of this year. As previously stated, Philips is reviewing all strategic options for Philips Lighting, including an initial public offering and a private sale. Costs related to the separation amounted to EUR 183 million in 2015. For 2016, the company continues to expect separation costs to be in the range of EUR 200-300 million.
Q4 2015 Financial and Operational Overview
Healthcare
Healthcare comparable sales grew 3% year-on-year and currency-comparable order intake grew by 15%. The Adjusted EBITA margin increased by 100 basis points to 15.8%, driven by cost productivity improvements and positive currency impacts.
We are encouraged by 15% order intake growth in Healthcare, which was driven by strong growth in North America, Western Europe and a substantial rebound in China. Our focus on multi-year strategic partnerships continued to pay off, as illustrated by three new partnerships based on a managed services model to optimize the delivery of care: with Mackenzie Health in Canada, Granada's Clinical Hospital in Spain, and Hospices Civils de Lyon in France.
Consumer Lifestyle
Consumer Lifestyle comparable sales increased by 6% year-on-year, driven by double-digit growth in Health & Wellness and low-single-digit growth in Personal Care and Domestic Appliances. The Adjusted EBITA margin increased by 180 basis points to 17.8% year-on-year.
Consumer Lifestyle once again delivered a strong top and bottom-line performance, with double-digit growth in growth geographies. In India, for instance, strong sales of the Philips Airfryer, juicers, soup makers and mixer grinders drove double-digit growth. Oral Healthcare continued its strong trajectory, with a very solid performance in North America, China, and Germany, Austria & Switzerland.
Lighting
Lighting again improved its operational results, with the Adjusted EBITA margin increasing by 150 basi
Most recent headlines
05/01/2027
Worlds first 802.15.4ab-UWB chip verified by Calterah and Rohde & Schwarz to be ...
01/06/2026
January 6 2026, 05:30 (PST) Dolby Sets the New Standard for Premium Entertainment at CES 2026
Throughout the week, Dolby brings to life the latest innovatio...
02/05/2026
Dalet, a leading technology and service provider for media-rich organizations, t...
01/05/2026
January 5 2026, 18:30 (PST) NBCUniversal's Peacock to Be First Streamer to ...
01/04/2026
January 4 2026, 18:00 (PST) DOLBY AND DOUYIN EMPOWER THE NEXT GENERATON OF CREATORS WITH DOLBY VISION
Douyin Users Can Now Create And Share Videos With Stun...
18/03/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
18/03/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
18/03/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
18/03/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
18/03/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
18/03/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
18/03/2026
SMPTE , the home of media professionals, technologists, and engineers, today unveiled its educational presentations for the 2026 NAB Show. This year SMPTE will ...
18/03/2026
Maxon, maker of powerful, approachable software solutions for creators working in 2D and 3D design, motion graphics, visual effects, gaming, and more, today ann...
18/03/2026
Digital Alert Systems
Preview
2026 NAB Show
April 19 - 22
Booth C3452
At the 2026 NAB Show, Digital Alert Systems will showcase Version 6.0 of its DASDEC ...
18/03/2026
Setplex today announced that it will showcase its complete, fully integrated Zapflex platform for the first time at the 2026 NAB Show, introducing powerful new ...
18/03/2026
THIS ANNOUNCEMENT RELATES TO THE DISCLOSURE OF INFORMATION THAT QUALIFIED OR MAY HAVE QUALIFIED AS INSIDE INFORMATION WITHIN THE MEANING OF ARTICLE 7(1) OF THE ...
18/03/2026
COW Jobs: Seeking DP for Low Budget Dramedy - Chicago
Brie Clayton March 17, 2026
0 Comments
Seeking Director of Photography for Low Budget Dramedy Fe...
18/03/2026
COW Jobs: Seeking Gaffer for Low Budget Dramedy - Chicago
Brie Clayton March 17, 2026
0 Comments
Seeking Gaffer for Low Budget Dramedy Feature Film- I...
18/03/2026
COW Jobs: Seeking Location, Sound for Low Budget Dramedy - Chicago
Brie Clayton March 17, 2026
0 Comments
Seeking Location/Sound for Low Budget Dramed...
18/03/2026
COW Jobs: Seeking Child Wrangler for Low Budget Film - Chicago
Brie Clayton March 17, 2026
0 Comments
Seeking Child Wrangler for Low Budget Dramedy Fe...
18/03/2026
Calrec Redefines Broadcast Workflows at NAB 2026 with its Most Powerful Hardware...
18/03/2026
Oscar Nominated Two People Exchanging Saliva Posted with DaVinci Resolve Studio
Brie Clayton March 17, 2026
0 Comments
DaVinci Resolve Studio handle...
18/03/2026
Boston Conservatory Presents Celebrated Musical Satire Urinetown Performances for this Center Stage production will take place at Boston Conservatory Theater ...
18/03/2026
Charlie Puth Joins Switched On Pop at Berklee NYC The Berklee alum spoke with host and Berklee NYC professor Charlie Harding for a live taping, answering audi...
17/03/2026
NASA+'s Rebecca Sirmons and Brittany Brown offer unique look at live streami...
17/03/2026
The transition to IP has fundamentally reshaped professional media infrastructures. Video, audio, and increasingly metadata now circulate as independent, precis...
17/03/2026
Live sports streaming can push every element in your video delivery chain to its limit, exposing every potential weakness in seconds. When the Super Bowl, the O...
17/03/2026
Texas Athletics sought to modernize its media production, enhance fan experience...
17/03/2026
Ikegami USA will demonstrate the latest additions to its wide range of broadcast...
17/03/2026
TNA Wrestling and iHeartMedia announces a new multi-platform collaboration that will integrate iHeartMedia across TNA's premium live events, weekly televisi...
17/03/2026
The goal was to transform Hard Rock Stadium into a global leader in sports and e...
17/03/2026
Spectrum has announced the launch of its new Multiview feature in the Spectrum TV App, giving customers the ability to watch up to four NCAA men's or women&...
17/03/2026
Genius Sports deal also covers data technology, AI, fan engagement, and performance analysis....
17/03/2026
Net Insight is supporting the rollout of a new state-wide centralized operation with Rede Massa, which is an SBT affiliate, the Brazilian regional television ne...
17/03/2026
Featuring audio from practice sessions, qualifying races, and Grand Prix races, the film represents Apple's sports-media ambitions
At Sunday night's Ac...
17/03/2026
Live broadcast has always been one of the most demanding environments in media a...
17/03/2026
DirecTV is introducing several new viewing features, including a multi-screen March Madness Mix channel and an updated Sports Central mobile app hub, ahead of...
17/03/2026
Deltatre has announced a multi-year partnership with ATP Media, the media arm of the ATP Tour, covering broadcast graphics, data, and production across the 2026...
17/03/2026
The Detroit Pistons have announced a third consecutive season partnering with Sc...
17/03/2026
Fresh Finds Africa spotlights emerging artists and movements across the continent and its global diaspora, with listeners tuning in to discover new Afro-forward...
17/03/2026
Last month, more than 60,000 fans piled into Bangkok's Rajamangala National ...
17/03/2026
Vintage-inspired channel strip joins line-up
Black Rooster Audio's latest plug-in provides an all-in-one mixing tool inspired by classic analogue consol...
17/03/2026
Level and EQ voice, reverb and noise independently
The latest plug-in to join Accentize's collection is said to take a new approach to dialogue processi...
17/03/2026
UHF radio mic & IEM bandwidth at risk
Once again, the UHF bandwidth that is currently allocated to RF audio gear is at risk of being reassigned to high-spee...
17/03/2026
Last Friday, the first Plant Fire Department Training Week in Bavaria successf...
17/03/2026
New campaign from NAATI and SBS CulturalConnnect highlights how we all deserve ...
17/03/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
17/03/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
17/03/2026
3D streaming infrastructure provider Miris today announced the launch of a public beta for its new 3D asset streaming platform. Miris is building the infrastruc...
Fourth-quarter highlights
