Signify reports third quarter sales of EUR 1.6 billion, operational profitability of 10.7% and a free cash flow of EUR 152 million
October 27 2023 - 1:00AM
Signify reports third quarter sales of EUR 1.6 billion, operational
profitability of 10.7% and a free cash flow of EUR 152 million
Press Release
October 27, 2023
Signify reports third quarter sales of EUR 1.6 billion,
operational profitability of 10.7% and a free cash flow of EUR 152
million
Third quarter 20231
- Signify's installed base of connected light points increased
from 119 million in Q2 23 to 121 million in Q3 23
- Reached the 2025 target for circular revenues in Brighter
Lives, Better World 2025 sustainability program
- Sales of EUR 1,649 million; nominal sales decline of -13.8% and
CSG of -7.8%
- LED-based sales represented 85% of total sales (Q3 22:
83%)
- Adj. EBITA margin of 10.7% (Q3 22: 10.4%)
- Net income of EUR 83 million (Q3 22: EUR 112 million)
- Free cash flow of EUR 152 million (Q3 22: EUR 135 million)
Eindhoven, the Netherlands – Signify (Euronext:
LIGHT), the world leader in lighting, today announced the company’s
third quarter 2023 results.
“In the third quarter, we continued to recover our gross margin,
which is a 2023 priority. Operating margin and free cash flow
growth were in line with our expectations. While we see persistent
weakness in China, in the connected consumer and LED electronics
businesses, we gained market share in the professional segment,
driven by strong demand for connected systems and services. We are
also pleased to report that we have been able to bring our
Conventional Products division back to its historical performance
levels,” said Eric Rondolat, CEO of Signify.
“With the visibility we have into the final quarter, we confirm
our guidance for the full year. However, we expect macroeconomic
external factors to continue to put pressure on our topline in the
quarters ahead. We are well positioned by the cost reduction
actions that began earlier this year. Further structural measures
will be implemented through Q1 2024 to improve our efficiency,
speed of execution, and enhance our focus on the growth
opportunities presented by the accelerating transition to
ultra-efficient LED and connected lighting technologies.”
Brighter Lives, Better World 2025In the third quarter of the
year, Signify was on track to deliver on three of its Brighter
Lives, Better World 2025 sustainability program commitments:
Double the pace of the Paris AgreementSignify
is on track to reduce emissions across the entire value chain by
40% against the 2019 baseline - double the pace required by the
Paris Agreement. This is driven by Signify's leadership in energy
efficient and connected LED lighting solutions, which significantly
reduce emissions during the use phase.
Double Circular revenuesCircular revenues
increased to 32%, hitting the 2025 target of 32%. The main
contribution was from serviceable and upgradeable luminaires, with
a strong performance from Cooper this quarter.
Double Brighter lives revenuesBrighter lives
revenues increased to 31%, on track to reach the 2025 target of
32%. This was driven by a strong performance from tunable products
that support well-being.
Double the percentage of women in leadershipThe
percentage of women in leadership positions decreased to 29%,
slightly off track to reach the 2025 target of 34%. Actions to
increase women in leadership positions continue, including focused
hiring practices for diversity across all levels, and through
retention and engagement actions to reduce attrition.
OutlookSignify confirms its guidance for the full year 2023. The
company expects an Adjusted EBITA margin of 9.5-10.5% and free cash
flow generation at the higher end of the 6-8% range. Conference
call and audio webcast Eric Rondolat (CEO) and Javier van Engelen
(CFO) will host a conference call for analysts and institutional
investors at 9:00 a.m. CET to discuss the third quarter 2023
results. A live audio webcast of the conference call will be
available via the Investor Relations WebsiteThe analyst
presentation is available via this link
¹ This press release contains certain non-IFRS financial
measures and ratios, such as comparable sales growth, EBITA,
adjusted EBITA and free cash flow, and related ratios, which are
not recognized measures of financial performance or liquidity under
IFRS. For a reconciliation of these non-IFRS financial measures to
the most directly comparable IFRS financial measures, see appendix
B, Reconciliation of non-IFRS financial measures, of this press
release.
- Signify Press Release - Q3 Results 2023
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