Koninklijke Philips N.V Announces Unaudited Consolidated Earnings Results for the Fourth Quarter and Year Ended December 31, 2015; Provides Earnings Guidance for the Full Year 2016
For the year, the company reported sales of EUR 24,244 million compared to EUR 21,391 million a year ago. Income from operations EUR 992 million compared to EUR 486 million a year ago. Income before taxes was EUR 623 million compared to EUR 185 million a year ago. Income after taxes was EUR 384 million compared to EUR 159 million a year ago. Net income from continuing operations was EUR 414 million compared to EUR 221 million a year ago. Net income was EUR 659 million compared to EUR 411 million a year ago. The increase in income tax expense was mainly due to higher taxable profit and the absence of various items that reduced the charge in the prior year, in particular favorable tax regulations relating to R&D investments in 2014. Net income attributable to the company shareholders was EUR 645 million or EUR 0.70 per basic and diluted share compared to EUR 415 million or EUR 0.45 per basic and diluted share a year ago. Net cash provided by operating activities was EUR 1,167 million compared to EUR 1,303 million a year ago. Net capital expenditures were EUR 842 million compared to EUR 806 million a year ago. Adjusted EBITDA was EUR 2,240 million compared to EUR 1,915 million a year ago. Adjusted EBITA increased by EUR 325 million compared to 2014. The year-on-year increase was mainly driven by improved performance in all operating sectors. EBITDA was EUR 1,372 million compared to EUR 821 million a year ago. As at December 31, 2015, the company's net debt was EUR 3,994 million compared to EUR 2,231 million a year ago. Return on invested capital increased to 7.0%, compared to 4.5% in 2014.
For the year 2016, the company continues to expect modest comparable sales growth and the company will build on 2015 operational performance improvement. Taking into account ongoing macro-economic headwinds and the phasing of costs and sales, the company expects improvements in the year to be back-end loaded. In 2016, the company expects a net reduction in sales of EUR 60 million, mainly reflecting lower royalty income due to the expiration of licenses. Effective tax rate to be in the low-30s.