Philips' Outlook Amid China's Healthcare Shake-up

Philips sees subdued demand in China due to ongoing anti-corruption efforts impacting Western companies. CEO Roy Jakobs indicates Chinese sales, previously over 13%, now account for about 10% of Philips' revenue. The company anticipates more than 18 billion euros in 2024 revenues, awaiting market recovery.

Philips CEO Roy Jakobs has revealed concerns over reduced demand in China, attributing the dip to aggressive healthcare anti-corruption measures by the Chinese government. This initiative has reportedly affected revenue for many Western companies, including Philips.

Speaking during the annual JPMorgan health conference, Jakobs cited the continued volatility of the Chinese market and noted potential trade policy shifts under President-elect Donald Trump. He highlighted audits and rigorous scrutiny as major hurdles impacting the company's growth trajectory in the region.

Despite challenges, Philips remains optimistic about market recovery, with Jakobs referencing positive discussions with Chinese officials. However, he acknowledges the impact of reduced sales on Phillips' overall financial outlook, projecting that China will constitute about 10% of its revenue in the near future.

(With inputs from agencies.)