Dutch multinational Royal Philips has revised its sales growth forecast for 2024 due to weak demand from China.

Revised Sales Growth Forecast

The company now expects sales growth of up to 1.5 percent, down from its previous estimate of up to 5 percent. This adjustment has caused a 16 percent drop in Philips' shares on the Amsterdam Stock Exchange.

Decrease in Product Orders

The company reported a 2 percent decrease in product orders during the third quarter, which it attributed to the ongoing crisis in China. The anti-corruption campaign in China has also affected the healthcare sector, leading to increased scrutiny of local medical technology purchases.

Optimism about Growth Prospects

Despite these challenges, CEO Roy Jakobs remains optimistic about growth prospects in other regions. The uncertainty surrounding the Chinese market raises concerns about Philips' long-term growth trajectory.

Financial Repercussions of Recalls

The company is also dealing with the financial repercussions of recalls in the United States related to defective sleep apnea devices.

New Chief Financial Officer

Charlotte Hanneman has recently become Philips' first female chief financial officer and board member.

Increased Stakes by Major Shareholders

Two major shareholders, the Agnelli family and the Artisan Partners fund, have increased their stakes in Philips, indicating confidence in the company's long-term potential.

Focus on Regaining Consumer Trust

Philips' focus will be on regaining consumer trust and stabilizing its operations, particularly in the Chinese market.