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    Signify Αποτελέσματα 4ου Τριμήνου & Ετήσια 2023

    January 26, 2024

    Signify reports full-year sales of EUR 6.7 billion, operational profitability of 10.0% and a free cash flow of 8.7% of sales

     

    Full year 20231

    • Signify's installed base of connected light points increased from 114 million at YE 22 to 124 million at YE 23
    • On track for three Brighter Lives, Better World 2025 sustainability program commitments
    • Sales of EUR 6,704 million; nominal sales decline of -10.8% and CSG of -8.3%
    • LED-based sales represented 85% of total sales (FY 22: 83%)
    • Adj. EBITA margin of 10.0% (FY 22: 10.1%)
    • Net income of EUR 215 million (FY 22: EUR 532 million incl. one-time effects of EUR 184 million)
    • Free cash flow of EUR 586 million (FY 22: EUR 445 million), representing 8.7% of sales

     

    Fourth quarter 2023

    • Sales of EUR 1,734 million; nominal sales decline of -12.3% and CSG of -7.7%
    • Adj. EBITA margin of 12.1% (Q4 22: 10.2%)
    • Net income of EUR 59 million (Q4 22: EUR 86 million)
    • Free cash flow of EUR 295 million (Q4 22: EUR 364 million)

     

    Dividend

    • Proposal to increase its cash dividend to EUR 1.55 per share over 2023 (FY 22: EUR 1.50)

     

    Eindhoven, the NetherlandsSignify (Euronext: LIGHT), the world leader in lighting, today announced the company’s fourth quarter and full-year 2023 results.

     

    “In Q4, our gross margin was again strong, confirming our improving operational performance. This brought our adjusted EBITA margin into double digits for the full year. While we continued to face adverse market conditions in some geographies and in the consumer and OEM segments, we have gained share with our professional connected systems. We over-delivered against our free cash flow guidance, with close to EUR 600m in cash, representing 8.7% of sales. We are also proud to have surpassed the circular revenues sustainability target two years ahead of schedule. I would like to thank our employees and partners for their continued hard work and dedication to help us achieve these results,” said Eric Rondolat, CEO of Signify.

     

    “While we anticipate challenging conditions will persist through the year ahead, I am confident in our strategy and in our proven ability to adapt. In the past quarter, we introduced a new operating model and measures that will enhance our performance and deliver annualized savings in excess of EUR 200 million. We will continue to protect our gross margin and enhance our focus on costs. We have developed strategic advantages that will help us to gain share and improve profitability while generating a strong free cash flow in 2024.”

    Brighter Lives, Better World 2025

     

    Signify completed the third year of its Brighter Lives, Better World 2025 sustainability program, making continued progress towards doubling its positive impact on the environment and society by the end of 2025. Signify is on track to deliver on three of its 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 increased to 33%, up 1% over the third quarter, 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 revenues

    Brighter lives revenues remained at 31%, on track to reach the 2025 target of 32%. This includes a strong contribution from professional luminaires that support the well-being of wildlife.

     

    • Double the percentage of women in leadership

    The percentage of women in leadership positions remained at 29%, slightly off track versus the 2023 target. Signify continues its actions to increase representation through focused hiring practices for diversity across all levels, and through retention and engagement actions to reduce attrition.

     

    In the fourth quarter, Signify received several external recognitions for its leadership in Sustainability. Signify was included in the DJSI World Index for the 7th consecutive year, was included in the DJSI Europe Index for the 6th time, and achieved the EcoVadis Platinum rating for the 4th consecutive year.

    Outlook

     

    For 2024, Signify expects:

     

    • 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 Javier van Engelen (CFO) will host a conference call for analysts and institutional investors at 9:00 a.m. CET to discuss the fourth quarter and full-year 2023 results. A live audio webcast of the conference call will be available via the Investor Relations website.

    Financial calendar

    February 27, 2024: Annual Report 2023

    April 26, 2024: First quarter results 2024

    May 14, 2024: Annual General Meeting

    May 16, 2024: Ex-dividend date

    May 17, 2024: Dividend record date

    June 3, 2024: Dividend payment date

    July 26, 2024: Second quarter and half-year results 2024

    October 25, 2024: Third quarter results 2024

    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.

    Important information

     

    Forward-Looking Statements and Risks & Uncertainties

    This document and the related oral presentation contain, and responses to questions following the presentation may contain, forward-looking statements that reflect the intentions, beliefs or current expectations and projections of Signify N.V. (the “Company”, and together with its subsidiaries, the “Group”), including statements regarding strategy, estimates of sales growth and future operational results.


    By their nature, these statements involve risks and uncertainties facing the Company and its Group companies, and a number of important factors could cause actual results or outcomes to differ materially from those expressed in any forward-looking statement as a result of risks and uncertainties. Such risks, uncertainties and other important factors include but are not limited to: adverse economic and political developments, in particular the impacts of the Russia-Ukraine conflict, the conflict in the Middle East, the energy crisis in Europe, the expected recovery trajectory of China post COVID, component shortages, cost inflation, rapid technological change, competition in the general lighting market, development of lighting systems and services, successful implementation of business transformation programs, impact of acquisitions and other transactions, reputational and adverse effects on business due to activities in Environment, Health & Safety, compliance risks, ability to attract and retain talented personnel, adverse currency effects, pension liabilities, and exposure to international tax laws.

     

    Additional risks currently not known to the Group or that the Group has not considered material as of the date of this document could also prove to be important and may have a material adverse effect on the business, results of operations, financial condition and prospects of the Group or could cause the forward-looking events discussed in this document not to occur. The Group undertakes no duty to and will not necessarily update any of the forward-looking statements in light of new information or future events, except to the extent required by applicable law.

     

    Market and Industry Information

    All references to market share, market data, industry statistics and industry forecasts in this document consist of estimates compiled by industry professionals, competitors, organizations or analysts, of publicly available information or of the Group’s own assessment of its sales and markets. Rankings are based on sales unless otherwise stated.

     

    Non-IFRS Financial Measures

    Certain parts of this document contain non-IFRS financial measures and ratios, such as comparable sales growth, adjusted gross margin, EBITA, adjusted EBITA, free cash flow, and other related ratios, which are not recognized measures of financial performance or liquidity under IFRS. The non-IFRS financial measures presented are measures used by management to monitor the underlying performance of the Group’s business and operations and, accordingly, they have not been audited nor reviewed. Not all companies calculate non-IFRS financial measures in the same manner or on a consistent basis and these measures and ratios may not be comparable to measures used by other companies under the same or similar names. A reconciliation of these non-IFRS financial measures to the most directly comparable IFRS financial measures is contained in this document. For further information on non-IFRS financial measures, see “Chapter 18 Reconciliation of non-IFRS measures” in the Annual Report 2022.

     

    Presentation

    All amounts are in millions of euros unless otherwise stated. Due to rounding, amounts may not add up to totals provided. All reported data are unaudited. Unless otherwise indicated, financial information has been prepared in accordance with the accounting policies as stated in the Annual Report 2022 and the Semi-Annual Report 2023.

     

    Market Abuse Regulation

    This press release contains information within the meaning of Article 7(1) of the EU Market Abuse Regulation.

    For further information, please contact:

    Signify Investor Relations

    Thelke Gerdes

    Tel: +31 6 1801 7131

    E-mail: thelke.gerdes@signify.com

     

    Signify Corporate Communications

    Tom Lodge

    Tel: +31 6 5252 5416

    E-mail: tom.lodge@signify.com

    Media Assets

    Q3 Business Highlights
    Watch Q4 2023 business highlights video

    About Signify

     

    Signify (Euronext: LIGHT) is the world leader in lighting for professionals, consumers and the Internet of Things. Our Philips products, Interact systems and data-enabled services, deliver business value and transform life in homes, buildings and public spaces. In 2023, we had sales of EUR 6.7 billion, approximately 32,000 employees and a presence in over 70 countries. We unlock the extraordinary potential of light for brighter lives and a better world. We have been in the Dow Jones Sustainability World Index since our IPO for seven consecutive years and have achieved the EcoVadis Platinum rating for four consecutive years, placing Signify in the top one percent of companies assessed. News from Signify can be found in the Newsroom, on X, LinkedIn and Instagram. Information for investors is located on the Investor Relations page.

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