Medical technology giant Philips booked global sales of €4.5 billion in the third quarter this year, an 11% rise on 2022 and further indication that the company’s fortunes are recovering. 

Philips chief executive Roy Jakobs said the improvement was largely down to better supply chain reliability. Cost cutting is also having an impact and 7,500 of the 10,000 job losses announced earlier this year have now been released. 

Orders have shrunk 9% on a year ago, but this is mainly due to a downturn from China and the order book remains strong, the company said. 

The recall of its sleep apnea machines continues to be the highest priority, Jakobs said. The company is embroiled in several court cases about the potential impact on health but, Jakobs said, the company’s own tests had shown no safety risk to patients. 

“Based on our improved performance, we are further raising the outlook for both sales and profitability for the full year 2023, although recognising uncertainties remain in an increasingly volatile geopolitical environment,” Jakobs said. 

Philips now expects to deliver 6-7% comparable sales growth and an adjusted EBITA margin of 10-11% for the full year 2023.

In August, Italian investment house Exor said it is taking a 15% stake in Philips, making it the biggest single investor in the company.

Exor is owned by the Agnelli family, who founded car company Fiat and is listed on the Amsterdam stock exchange. The company is putting €2.6 billion into the Dutch firm.