Resultados de Signify en el tercer trimestre de 2019

    October 25, 2019

     

    Signify reports third quarter sales of EUR 1.5 billion, operational profitability of 11.0% and free cash flow of EUR 45 million

     

    Third quarter 20191

    • Signify’s installed base of connected light points increased from 50 million in Q2 19 to 53 million in Q3 19
    • CSG growing profit engines +1.0%; CSG total Signify -5.0%
    • LED-based comparable sales grew by 2.6% to 78% of sales (Q3 18: 70%)
    • Adj. indirect costs down EUR 22 million on a currency comparable basis, a reduction of 4.7%
    • Adj. EBITA margin reduced by 100 bps to 11.0%, due to a very high comparison base in BG Lamps and currency impact of -30 bps
    • Adj. EBITA margin of the growing profit engines increased by 80 bps with each of the three BGs improving
    • Net income of EUR 74 million (Q3 18: EUR 93 million), reflecting lower operational profitability and higher restructuring costs
    • Free cash flow amounted to EUR 45 million (Q3 18: EUR 64 million) reflecting phasing of payables and receivables as previously indicated at the end of Q2

     

    Eindhoven, the Netherlands – Signify (Euronext: LIGHT), the world leader in lighting, today announced the company’s 2019 third quarter results. “We are pleased with the comparable sales growth and improved operational profitability of our growing profit engines in the third quarter, against the backdrop of ongoing economic headwinds across the world. In the first nine months, we delivered a solid improvement in operational profitability, net income and free cash flow,” said CEO Eric Rondolat. “While market conditions continue to deteriorate, we remain confident that we will be able to improve our profitability for 2019, albeit somewhat less than we previously anticipated.”

     

    Outlook

    Although sales in the second half of the year are impacted by continuing deteriorating market conditions, Signify remains confident that it will be able to improve its Adjusted EBITA margin for 2019, albeit somewhat less than previously anticipated. Signify now expects the Adjusted EBITA margin to be in the range of 10.3% to 10.6%.

     

    The comparable sales growth of the growing profit engines (LED, Professional and Home combined) for 2019 is expected to be flat. The comparable sales growth of BG Lamps for 2019 is expected to decline at a pace which is towards the higher end of the previously indicated range of -24% to -21%.

     

    The company confirms that its free cash flow, excluding the positive impact from IFRS 16, is expected to be above 5% of sales.

    Conference call and audio webcast

    Eric Rondolat (CEO) and Stéphane Rougeot (CFO) will host a conference call for analysts and institutional investors at 9:00 a.m. CET to discuss third quarter results. A live and on-demand audio webcast of the conference call will be available via the Investor Relations website.

    Financial calendar

    January 31, 2020: Fourth quarter & full-year results 2019

    February 25, 2020: Annual Report 2019

    May 19, 2020: Annual General Meeting of Shareholders

    For full calendar click here.

    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 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, the impacts of 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, establishment of corporate and brand identity, adverse currency effects, pension liabilities, and exposure to international tax laws. Please see “Risk Factors and Risk Management” in Chapter 12 of the Annual Report 2018 for discussion of material risks, uncertainties and other important factors which may have a material adverse effect on the business, results of operations, financial condition and prospects of the Group. Such risks, uncertainties and other important factors should be read in conjunction with the information included in the Company’s Annual Report 2018 and semi-annual report 2019.

     

    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, and 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 or 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 2018.

     

    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 2018 and semi-annual report 2019.

     

    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
    Robin Jansen
    Tel: +31 6 1594 4569
    E-mail: robin.j.jansen@signify.com

     

    Signify Corporate Communications
    Elco van Groningen
    Tel: +31 6 1086 5519
    E-mail: elco.van.groningen@signify.com

    Media Assets

    Q3 Business Highlights
    Watch Q3 2019 business highlights video

    About Signify

     

    Signify (Euronext: LIGHT) is the world leader in lighting for professionals and consumers and lighting for the Internet of Things. Our Philips products, Interact connected lighting systems and data-enabled services, deliver business value and transform life in homes, buildings and public spaces. With 2018 sales of EUR 6.4 billion, we have approximately 27,000 employees and are present in over 70 countries. We unlock the extraordinary potential of light for brighter lives and a better world. We have been named Industry Leader in the Dow Jones Sustainability Index for three years in a row. News from Signify is located at the Newsroom, Twitter, LinkedIn and Instagram. Information for investors can be found on the Investor Relations page.

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