Philips growth spurred by COVID-19 demand and distant care

Health technology company Philips PHG.AS saw sales and profits jump in the third quarter, as the COVID-19 pandemic spurred demand for hospital equipment needed to help patients battling the disease.

Amsterdam-based Philips on Monday said comparable sales rose 10% to 4.98 billion euros ($5.8 billion) in the July-September period, while core profits improved by almost a third to 769 million euros.

Profits and sales easily beat analysts’ expectations, taking Philips shares up 2.9% at 0800 GMT in Amsterdam.

Growth was mainly driven by a 42% increase in sales at the connected care division, which makes monitoring and respiratory care devices used to treat COVID-19 patients and other appliances that allow carers to work remotely.

Like competitors such as Germany's Siemens Healthineers SHLG.DE, Philips' results were hit hard in the first half of 2020, as the pandemic caused hospitals to delay the installation of new equipment and crippled demand for consumer products.

Philips cut its outlook for 2020 in August after the U.S. Department of Health canceled most of an order for 43,000 ventilators.

However, The company on Monday maintained its outlook for moderate sales growth and a stable EBITA margin for the whole of this year.