Dutch electronics giant Philips said Tuesday its bottom-line profit more than doubled in 2016, buoyed by gains from the flotation of its lighting business and the strong performance of its health technology division.
Net profit soared by 126 percent to 1.49 billion euros ($1.6 billion) last year, while sales edged up by just one percent to 24.5 billion euros.
On a comparable basis, or adjusted for changes in the composition of the group, sales expanded by three percent.
"Overall, 2016 was a defining year," said chief executive Frans van Houten, pointing to the listing of Philips Lighting and deals to sell the Lumileds LED and automotive businesses.
Philips is best known for the manufacture of lightbulbs, electrical appliances and television sets.
But it has pulled out of these activities in face of fierce competition from Asia to focus on health technology such as computer tomography and molecular imaging, as well as household appliances such as electrical toothbrushes and kitchen equipment.
The group, which sold its first lightbulb a few years after it was founded in 1891, listed its Philips Lighting division at the end of May, netting proceeds of 750 million euros.
Philips still holds a stake of 71.23 percent but intends to sell it entirely in the future.
In December, it announced the sale of an 80.1-percent stake in its Lumileds LED lighting business to funds managed by US-based Apollo Global Management for $1.5 billion.
In the fourth quarter alone, Philips booked net profit of 640 million euros, compared with a loss of 39 million euros a year earlier.
Fourth-quarter sales rose by two percent to 7.24 billion euros, driven by higher revenues in the health tech division.
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