Philips increased its sales by 2% and earnings by nearly 13% in its first quarter based on double digit growth in China.
But sales in its mature markets – Western Europeand North America – were flat and declined by 1% compared to Q1 2018.
The Dutch-listed tech giant has been increasing its stake in the healthcare market after ditching some of its consumer ranges, including Philips Lighting in 2016, in an effort to streamline its business.
A falling demand in hospital equipment in Europe blunted Q1 sales but CEO Frans van Houten said that growth in Philips’ mature markets will be much stronger in Q2.
Van Houten is behind Philip’s re-focusing from a consumer electronics firm to a healthcare company over the last eight years.
He said: “We had a reasonable start to the year, as we delivered 2% comparable sales and order intake growth, further building on strong growth in 2018.
“We continue to expect our performance momentum to improve over the course of the year, based on the demand for our innovative products and solutions to improve people’s health and enhance care provider productivity, supported by our order book.”
Philips recently launched into the hearing healthcare market with a new range of hearing aids which it will be targeting care professionals and providers with.
Hearing aid manufacturer Demant has secured a license from Philips to use its brand on a complete range of premium hearing aids, accessories and applications.