Signify’s Second Quarter Results 2023

August 8, 2023

Signify reports second quarter sales of EUR 1.6 billion, operational profitability of 8.3% and a free cash flow of EUR 88 million

Signify (Euronext: LIGHT), a world leader in lighting, announced the company’s second quarter 2023 results.

“In the second quarter, we saw continued softness in the consumer, indoor professional and OEM channels and a slower than anticipated recovery of the Chinese market. Against this backdrop, our actions to improve gross margin are paying off, although fixed costs reduction plans are not yet fully compensating for the volume decline. While our Digital Solutions and Conventional Products divisions demonstrated resilience in their bottom line, our Digital Products division was more exposed to these challenges,” said Eric Rondolat, CEO of Signify.

“The continued economic softness has led us to apply caution in our outlook for the full year and adjust our Adjusted EBITA margin guidance to 9.5-10.5%. On the other hand, our free cash flow generation has and will continue to benefit from supply chain lead time improvements and effective working capital measures. We therefore expect our free cash flow generation to be at the higher end of the 6-8% range. To optimize our global operations, we have begun implementing structural measures to adapt our cost structure to the market environment. These measures will enable enhanced performance and a stronger focus on growth opportunities.”

Eric Rondolat,
CEO of Signify

Brighter Lives, Better World 2025

In the second quarter of the year, Signify remained on track to deliver on its Brighter Lives, Better World 2025 sustainability program commitments.

  • Double the pace of the Paris Agreement

Signify 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 revenues

Circular revenues remained stable at 29%, on track to reach the 2025 target of 32%. The main contribution is from serviceable and upgradeable luminaires, including the first serviceable Horticulture product family.

  • Double Brighter lives revenues

Brighter lives revenues increased to 28%, on track to reach the 2025 target of 32%. This was driven by the performance of Cooper’s tunable products supporting the consumer well-being portfolio and continued strength of the safety & security portfolio.

  • Double the percentage of women in leadership

The percentage of women in leadership positions continued to improve to 30%, on track to reach the 2025 target of 34%. This was mainly due to the acceleration of hiring practices for diversity across all levels.

Outlook

The continued economic softness has led us to apply caution in our outlook for the full year and adjust our Adjusted EBITA margin guidance to 9.5-10.5%. On the other hand, our free cash flow generation has and will continue to benefit from supply chain lead time improvements and effective working capital measures. We therefore expect our free cash flow generation to be at the higher end of the 6-8% range.

For the full and original version of the press release click here

For the presentation click here

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 second quarter 2023 results. A live audio webcast of the conference call will be available via the Investor Relations website.

Financial calendar

October 27, 2023: Third quarter results 2023

January 26, 2024: Fourth quarter and full-year results 2023

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.

More information available here

Related Article

Signify’s Commendable First Quarter Results 2023

Signify reports first quarter sales of EUR 1.7 billion, operational profitability of 8.9% and a free cash flow of EUR 51 million.

Related Articles


Changing Scene


Design

  • What You Need to Consider When Choosing Data Center Lighting

    What You Need to Consider When Choosing Data Center Lighting

    When operating a data center, the lighting syst​em is often not the most concerned part. Actually, lighting system performance directly influences whole electricity consumption and operating costs, especially in a 24-hour non-stop data center. This article will delve into the key factors to be considered when choosing data center lighting. For enterprises that are planning to… Read More…

  • Artika: 5 Advantages of Smart Lighting

    Artika: 5 Advantages of Smart Lighting

    Lighting is arguably one of the most important features of any home. Too bright, and it can be abrasive, increasing your sensitivity to light. Too dim, and it hides the unique characteristics of your home and can have adverse effects on your mood. When you design your home, the type of lighting and fixtures you… Read More…


New Products

  • RENO Lighting: Lucid Series Ambient Bi-Directional Luminaire

    RENO Lighting: Lucid Series Ambient Bi-Directional Luminaire

    The Lucid Series Bi-Directional Luminaire is an ultra-slim, contemporary light designed for performance. It provides seamless, dot-free upward and downward illumination with a 50/50 direct-indirect distribution. Its translucent lens creates an elegant, diffused glow resembling natural daylight that brings warmth to any environment.​ Designed for modern, design- forward interiors, the Lucid Bi- Directional Luminaire is… Read More…

  • Eralux: New OCEANO Outdoor Wall Sconce

    Eralux: New OCEANO Outdoor Wall Sconce

    The OCEANO outdoor sconce features an elegant design, offering up and down lighting. With IP65 weatherproofing, it’s built for durability. Its sleek, modern design and robust construction make it perfect for both aesthetic appeal and long-lasting performance in any outdoor setting. Applications: Commercial Entrances | Outdoor Landscapes | Facades | Residential Exteriors Read More…