Signify reports second quarter sales of EUR 1.5 billion, operational profitability of 7.9% and a free cash flow of EUR 51 million
26 Juillet 2024 - 7:00AM
UK Regulatory
Signify reports second quarter sales of EUR 1.5 billion,
operational profitability of 7.9% and a free cash flow of EUR 51
million
Press Release
July 26, 2024
Signify reports second quarter sales of EUR 1.5 billion,
operational profitability of 7.9% and a free cash flow of EUR 51
million
Second quarter
20241
- Installed base of connected light points increased to 136
million in Q2 24
- Released Climate Transition Plan
with SBTi-validated net-zero targets
- Sales of EUR 1,483 million; nominal sales decline of -9.8% and
CSG of -8.4%
- LED-based sales represented 86% of total sales (Q2 23:
84%)
- Adj. EBITA margin of 7.9% (Q2 23: 8.3%)
- Net income of EUR 63 million (Q2 23: EUR 45 million)
- Free cash flow of EUR 51 million (Q2 23: EUR 88 million)
Eindhoven, the Netherlands –
Signify (Euronext: LIGHT), the world leader in lighting, today
announced the company’s second quarter 2024 results.
“Our topline for the second quarter was impacted
by the accelerated decline in Conventional lighting and continued
market softness in Europe for the Professional business and in
China. At the same time, we are encouraged by the positive trend in
connected lighting, as well as the return to growth for our
Consumer business outside of China and our OEM business. While the
Adjusted EBITA margin of our Professional business was impacted,
our Consumer and OEM businesses showed substantial improvements.
Our free cash flow was in line with our expectations, reflecting
the anticipated cash outflow from the restructuring program,” said
Eric Rondolat, CEO of Signify.
“We remain cautious on Professional Europe and
on China for the second semester, but expect to see positive
traction for Professional in the Americas, as well as the OEM and
Consumer businesses. As a result, we maintain our guidance, with an
Adjusted EBITA margin at the lower end of the 10.0-10.5% range and
free cash flow generation of 6-7% of sales".
Brighter Lives, Better World 2025
In the second quarter of the year, Signify continued to advance
its Brighter Lives, Better World 2025 sustainability program which
commits to doubling its positive impact on the environment and
society.
Double the pace of the Paris
Agreement
Signify is ahead of schedule to achieve its 2025 target to reduce
greenhouse gas (GHG) emissions across its full value chain by 40%
against a 2019 baseline - double the pace required by the Paris
Agreement 1.5 degree scenario.
Double Circular revenues
Circular revenues increased to 35%, up 1% on last quarter and ahead
of the 2025 target of 32%. The main contribution came from
serviceable luminaires for the professional segment and LED
luminaires for the consumer segment.
Double Brighter lives
revenues
Brighter 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, and
professional luminaires that are Dark Sky compliant, reducing the
impact on nature.
Double the percentage of women in
leadership
The percentage of women in leadership positions increased to 29%, a
1% improvement over last quarter, slightly behind the 2025 target
of 34%. Signify continues its efforts to increase representation
through focused hiring practices for diversity at all levels, and
through retention and engagement activities to reduce
attrition.
Climate Transition Plan
In the second quarter, Signify released its Climate Transition
Plan, which sets out the company's climate strategy in line with
its SBTi-validated 2040 net-zero targets:
- Net-zero GHG emissions across its
entire value chain by 2040.
- Absolute reduction of scope 1, 2
and 3 GHG emissions of 50% by 2030, and 90% by 2040, against a 2019
baseline.
Outlook
We remain cautious on Professional Europe and on
China for the second semester, but expect to see positive traction
for Professional in the Americas, as well as the OEM and Consumer
businesses. As a result, we maintain our guidance, with an Adjusted
EBITA margin at the lower end of the 10.0-10.5% range and free cash
flow generation of 6-7% of sales.
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 second quarter 2024 results. A live audio
webcast of the conference call will be available via the Investor
Relations Website
The 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
A, Reconciliation of non-IFRS financial measures, of this press
release.
- Signify Press Release - Q2 results 2024
Signify NV (EU:LIGHT)
Graphique Historique de l'Action
De Sept 2024 à Oct 2024
Signify NV (EU:LIGHT)
Graphique Historique de l'Action
De Oct 2023 à Oct 2024