Signify reports first quarter sales of EUR 1.5 billion, operational profitability of 8.3% and a free cash flow of EUR 80 million
26 Avril 2024 - 7:00AM
Signify reports first quarter sales of EUR 1.5 billion, operational
profitability of 8.3% and a free cash flow of EUR 80 million
Press Release
April 26, 2024
Signify reports first quarter sales of EUR 1.5 billion,
operational profitability of 8.3% and a free cash flow of EUR 80
million
First quarter
20241
- Signify's installed base of connected light points increased
from 124 million in Q4 23 to 126 million in Q1 24
- Achieved reasonable assurance on full Brighter Lives, Better
World 2025 program, including scope 3 emissions
- Sales of EUR 1,468 million; nominal sales decline of -12.5% and
CSG of -10.1%
- LED-based sales represented 87% of total sales (Q1 23:
82%)
- Adj. EBITA margin of 8.3% (Q1 23: 8.9%)
- Net income of EUR 44 million (Q1 23: EUR 28 million)
- Free cash flow of EUR 80 million (Q1 23: EUR 51 million)
Eindhoven, the Netherlands –
Signify (Euronext: LIGHT), the world leader in lighting, today
announced the company’s first quarter 2024 results.
“In the first quarter, we saw improving dynamics
in our US Professional, OEM and Consumer businesses, while the
market in China remained soft and the European Professional
business was substantially below our expectation. Our operating
margin was resilient, thanks to gross margin expansion as price
dynamics normalize, compensated by bill of material improvements.
We also began to see the positive impact of our cost reduction
program and strong free cash flow generation, as we continued to
improve our working capital,” said Eric Rondolat, CEO of
Signify.
“On April 1, we successfully implemented our new
organizational structure. The new model brings enhanced focus and
accountability to our business from an end-customer perspective,
and has earned strong support internally and externally. As the
year progresses, we anticipate a sequential comparable sales growth
improvement, driven by momentum in the Americas and our OEM and
Consumer businesses. The continued effort to manage the gross
margin, combined with the implementation of our cost reduction
program, will deliver a positive effect on our operating margin in
the quarters ahead, in line with our guidance for the full
year.”
Brighter Lives, Better World 2025
The first quarter of 2024 marks the start of
Signify's fourth year of its Brighter Lives, Better World 2025
sustainability program commitments that contribute to doubling its
positive impact on the environment and society.
Double the pace of the Paris
AgreementSignify is ahead of schedule to achieve its 2025
target to reduce emissions across the full value chain by 40%
against its 2019 baseline - double the pace required by the Paris
Agreement 1.5 degree scenario. In addition, the company has
received approval from the Science Based Targets initiative (SBTi)
for its ambitious 2040 Net Zero target with a 90% absolute
reduction of scope 1, 2 and 3 emissions.
Double Circular
revenuesCircular revenues increased to 34%, surpassing the
2025 target of 32%. The main contribution was from serviceable
luminaires, with a strong performance from both consumer and
professional.
Double Brighter lives
revenuesBrighter lives revenues remained at 31%, on track
to reach the 2025 target of 32%. This includes a strong
contribution from consumer products that support health and
well-being, mainly EyeComfort.
Double the percentage of women in
leadershipThe percentage of women in leadership positions
decreased to 28%, a 1% decrease versus last quarter, and slightly
behind target. Signify continues its actions to increase women
representation through focused hiring practices for diversity
across all levels, and through retention and engagement actions to
reduce attrition.
In the first quarter, Signify received several
external recognitions for its leadership in Sustainability. Signify
was placed on CDP's 2023 Climate A-List for the seventh consecutive
year. It was also recognized on CDP's 2023 Supplier Engagement
Leaderboard for its commitment to engagement in its supply chain to
decrease carbon emissions. Lastly, Signify is recognized on the
Clean200, a list of companies putting sustainable investments at
the heart of their strategy.
In addition, Signify released Environmental
Product Declarations that advance transparency and sustainable
innovation, covering the vast majority of its LED portfolio.
Signify has committed to sharing the environmental impact of its
full range of LED products. Being transparent about our products'
environmental impact gives customers the information they need to
make informed decisions.
Outlook
For 2024, Signify continues to expect:
- An Adjusted EBITA margin improvement of up to 50 bps, including
first benefits from the announced restructuring program
- Free cash flow generation of 6-7% of sales, including an
incremental and non-recurring negative impact of around EUR 150
million related to the restructuring program and a reduction of US
pension liabilities.
Conference call and audio webcast
Eric Rondolat (CEO) and Zeljko Kosanovic (CFO) will host a
conference call for analysts and institutional investors at 9:00
a.m. CET to discuss the first quarter 2024 results. A live audio
webcast of the conference call will be available via the Investor
Relations WebsiteThe analyst presentation is available via this
link
1This 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 - Q1 results 2024
Signify NV (EU:LIGHT)
Graphique Historique de l'Action
De Sept 2024 à Oct 2024
Signify NV (EU:LIGHT)
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De Oct 2023 à Oct 2024