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Philips’ issues with the V60 ventilator product family impacted Q1 results

Royal Philips a global leader in health technology, announced that its subsidiary Philips Respironics is notifying customers of its V60/V60 Plus and V680 ventilators about a potential issue with the electrical circuit in these ventilators that controls the 35V power supply to the ventilator and alarm. 

Philips Respironics has identified that there is a possibility that affected ventilator units may cease to operate, potentially without setting off an audible/visual alarm (a so-called silent shutdown), and the patient may no longer receive respiratory assistance. Philips Respironics projects an average of less than one silent shutdown among one million uses per year.

David Ferguson, Business Leader of Philips Respironics, said:

We are committed to providing products and solutions that are safe and reliable for those who depend on them. The V60 ventilator has been in service for more than 10 years with a high record of reliability. We take every customer complaint seriously, and whenever we identify an issue, we address it thoroughly and transparently in consultation with the relevant competent authorities. We have created a dedicated team that is focused on addressing the current issue and providing technical assistance where needed.

Philips Respironics is committed to addressing the issue and will provide regular updates to customers on the development of its plan to address the issue, with the first update to be provided before June 30, 2022.

Philips’ Q1 results 2022

First-quarter highlights

  • Group sales amounted to EUR 3.9 billion, with a 4% comparable sales decline on the back of 9% comparable sales growth in Q1 2021
  • Comparable order intake increased 5%, driven by the Diagnosis & Treatment businesses and Hospital Patient Monitoring
  • Income from continuing operations amounted to a loss of EUR 152 million, compared to a loss of EUR 34 million in Q1 2021
  • Adjusted EBITA of EUR 243 million, or 6.2% of sales, compared to 9.5% of sales in Q1 2021
  • Operating cash flow was an outflow of EUR 227 million, compared to an inflow of EUR 321 million in Q1 2021
  • Philips provides update on Philips Respironics field action related to specific CPAP, BiPAP and mechanical ventilators

Business segment performance

The Diagnosis & Treatment businesses’ comparable sales decreased 2%, on the back of 9% comparable sales growth in Q1 2021. High- single-digit growth in Image-Guided Therapy was more than offset by a decline in Ultrasound and in Diagnostic Imaging due to electronic component shortages, and on the back of strong growth in these businesses last year. Comparable order intake increased 7%, with double-digit growth in Image-Guided Therapy and mid-single-digit growth in Ultrasound and Diagnostic Imaging, reflecting robust traction for Philips’ very attractive offering. The Adjusted EBITA margin was 5.9%, mainly due to the decline in sales and the impact of supply chain headwinds.

The Connected Care businesses’ comparable sales decreased 21%, mainly due to the consequences of the Respironics field action. Comparable order intake was in line with Q1 2021, with continued strong demand and share gains in Hospital Patient Monitoring and Connected Care Informatics. The Adjusted EBITA margin amounted to 0.4%, mainly due to the decline in sales and the impact of supply chain headwinds, partly offset by cost savings.

The Personal Health businesses’ comparable sales increased by a strong 8%, primarily driven by double-digit growth in Oral Healthcare. The Adjusted EBITA margin amounted to 15.3%, mainly due to the increase in sales, partly offset by supply chain headwinds and an adverse currency impact.


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