(AOF) – Less than 2 weeks after its warning on its 2021 results, caused by supply problems, Philips has indicated that it is aiming for like-for-like sales growth this year of between 3% and 5% and an improvement of 40 at 90 basis points its adjusted Ebita margin. The electronics group specializing in health and personal care products expects a start to the year marked by a drop in comparable sales, followed by a recovery and a solid second half.
At the start of 2022, it will indeed be faced with an unfavorable basis for comparison and headwinds linked to Covid-19 and supply chain challenges. Philips will also suffer from recalls of sleep apnea therapy devices.
Philips Respironics has produced a total of around 1.5 million repair kits and replacement devices – of which around 750,000 have reached customers – and aims to complete the repair and replacement program in Q4 2022.
In 2021, the group recorded revenue of 17.16 billion euros, down 1% like-for-like. Adjusted EBITDA fell 9.8% to 2.5 billion euros, showing a margin of 12%, down 1.2 points. This deterioration in profitability is explained by the decline in sales and difficulties in the supply chain, partially offset by productivity measures.
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Professional electronics: market under pressure
According to the WSTS (World Semiconductor Trade Statistics), the global semiconductor market is even expected to grow by 8.4% in 2021 for a market under extreme tension.
Excellent prospects
While demand is growing faster than global growth, supply is very limited. Three players dominate the sector (the Taiwanese TSMC, the American Intel and the Korean Samsung) whereas there were more than twenty in 2002. Analysts predict that there will be only two from 2023. The United States represent only 12% of world production according to the Semiconductor Industry Association. As for Europe, it weighs only 7%. It aims to produce 20% of semiconductors in the world by 2030. Sixteen countries, including France and Germany, will unite to develop production capacities.
TSMC (the Taiwan Semiconductor Manufacturing Company) is very well positioned to take advantage of the arrival of 5G and connected objects. “Founder”, it does not sell any chip under its brand, but produces the components on behalf of other players.
The Middle East ESC
Still relatively unknown compared to the Consumer Electronics Show (CES), the Gitex (Gulf Information Technology Exhibition) in Dubai has existed since 1981 and attracts around 100,000 visitors a year. Even if it wants to compete with the CES in Las Vegas, and the region is a very tech-savvy market, the Gitex remains, despite its internationalization, still a regional hub for technology. The CES makes it possible to cover the United States, North America and Europe at the same time, while the Gitex rather covers the Middle East, Africa and South Asia. In 2021 this event took place at the same time as the Universal Exhibition in Dubai. France was the second most represented country, behind Italy.