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

  • Johnnie Walker Princes Street Receives 2023 IES Lighting Control Innovation Award of Merit

    September 21, 2023 This month, the LCA explore a detailed networked lighting control solution installed at Johnnie Walker Princes Street in Edinburgh, Scotland. Lighting control design by BRC Imagination Arts. Set within an Edinburgh landmark transformed, offering eight floors filled with breathtaking experiences, bars, event spaces, and views across the capital, Johnnie Walker Princes Street… Read More…

  • Acquisition of Cree Lighting US, E-conolight, and Cree Lighting Canada 

    September 20, 2023 The acquisitions solidify ADLT Lighting Group’s position as a global leader in the lighting industry and reinforce its commitment to innovation and excellence. The ADLT Lighting Group is thrilled to announce the successful acquisition of Cree Lighting US, E-conolight, and Cree Lighting Canada on September 8th, 2023, marking a significant milestone in the company’s… Read More…


Design

  • Architectural lighting brings industrial building to life as part of City of Montreal rejuvenation project

    September 11, 2023 Valeco Energie Québec Inc. is a renewable energy development company found on the edge of Frédérick-Back park in Montreal. Valeco acts as the operators of the Biomont Energy cogeneration plant in the Saint-Michel environmental complex, which recovers biogas from the former landfill site and transforms it into green energy. “The park used… Read More…

  • St-Denis Thompson with Eureka Lighting

    St-Denis Thompson with Eureka Lighting

    September 6, 2023 Industrial-era lighting design complements historic office architecture Montreal contractor St-Denis Thompson specializes in building restoration. So, it was no coincidence that it moved its head office to a historic 1908 building on the banks of the Lachine Canal. St-Denis Thompson hired local interior design firm Folio Design to create new offices with… Read More…


New Products

  • BS101LRE Retrofit Kit from Beluce

    BS101LRE Retrofit Kit from Beluce

    September 19, 2023 The BS101LRE is the economical retrofit kit for the BS111 and BS101 The BS101LRE Retrofit Kit allows you to upgrade your existing BS111 and BS101 from fluorescent to LED. To retrofit all you need to do is remove the existing lens and reflector holding the lamps & ballast from the existing fixture… Read More…

  • S4i Integrator Solutions for Seamless Control

    S4i Integrator Solutions for Seamless Control

    September 19, 2023 S4i IB Now Integrates with Crestron Electronics to provide Seamless Control of Casambi Technologies Lighting S4i Solutions for Integrators is pleased to announce that the their Integration Broker (IB) now integrates with Crestron (SIMPL) control systems. This integration allows users to seamlessly control Casambi lighting from their Crestron system. Casambi is a wireless lighting control system that uses Bluetooth Low Energy… Read More…