Despite China weakness, Philips' second-quarter sales increase by 10.5%, causing a jump in their share price.

• Philips' shares rose in early trades on Monday following the release of its better-than-anticipated second-quarter earnings report.
• Despite a decline in China sales, group sales increased by 2% to 4.5 billion euros ($4.88 billion), mainly due to strong demand in North America.

The stock price of a Dutch technology company increased by more than 10.5% in early trades on Monday following the release of its second-quarter earnings report, which exceeded expectations.

The stock's gains were slightly reduced, allowing it to increase by 10.45% by 9:32 a.m. London time.

Despite a decline in China sales, group sales increased by 2% to 4.5 billion euros ($4.88 billion), mainly due to strong demand in North America.

The company, which produces medical devices and personal care products including electronic toothbrushes, experienced a 9% increase in comparable order intake during the three-month period.

Beijing's push for self-sufficiency in critical technologies, including healthcare, has contributed to the decline in China demand, according to the company. Despite this, the country remains an attractive market for growth, the company stated.

CNBC reported that CEO Roy Jakobs expressed optimism about the company's full-year guidance of comparable sales growth of 3-5% after announcing "robust" second-quarter results.

Despite a difficult macroeconomic climate, we experienced significant margin growth, thanks to our productivity program, efficient cash flow management, and sales growth that aligned with our plan, as stated by Jakobs.

Philips has reported significant cost savings over the period, including productivity savings of 195 million euros, operating model savings of 57 million euros, procurement savings of 71 million euros, and other programs' savings of 67 million euros. Despite this, the company is planning to cut approximately 10,000 jobs, or 13% of its workforce, as part of a reorganization set to begin in 2022, Reuters reported.

Philips has agreed to pay $1.1 billion in a settlement related to a Respironics personal injury litigation and a medical monitoring class action in the U.S.

The recall of faulty sleep apnea devices by the company in June 2021 due to health concerns led to a settlement.

The U.S. case has reached a conclusion with the settlement, allowing the company to refocus on innovation. However, other cases are still ongoing outside of the U.S.