Dutch electronics company Philips posted strong third quarter figures on Monday, driven by “fabulous” growth in China.
Strong sales in its health businesses drove the positive results, with net profit rising 18 percent year-on-year to 383 million euros. Sales rose 1 percent to 5.9 billion euros alongside a 14 percent rise in EBITDA to 649 million euros, just below analyst expectations of 651 million euros.
CEO Frans van Houten told CNBC in a TV interview on Monday that growth in China had been “absolutely fabulous”.
“Also the United States has performed very well for us, with more than a mid-single-digit order intake growth and revenue growth. So overall, I think Philips shows a balanced picture across the world and let’s not forget that Europe for us is less than 25 percent of our revenue”, he added.
Philips listed their lighting business on the Amsterdam stock exchange at the end of May, with Philips retaining a 71 percent stake. However, the firm has largely turned its hand to production of medical equipment after strong competition the the lighting industry hit the company’s balance book.
The company reiterated their profit outlook for the year, saying in a statement:
“Our outlook for 2016 remains unchanged, as we expect further earnings improvements in the fourth quarter of the year.
“Going forward, we remain concerned about risk due to volatility in the markets in which we operate.”