For 2021, Signify expects positive comparable sales growth, the level of which will depend on the recovery pattern in its markets. In addition, the company expects to continue its steady progress towards its medium-term Adj. EBITA margin objective. Cash flow, following two years of significant structural working capital improvements, is expected to exceed 8% of sales. As guided for the mid-term, this includes a higher initial cash outflow for cost restructuring and continued post-merger integration activities.
Indication of FX impact for 2021
Based on the prevailing spot rates at the end of December 2020, the currency impact:
- on sales is expected to be around -6.4% in Q1 21 and -3.9% for FY 21
- on the adjusted EBITA margin is expected to be around +10 bps in in Q1 21 and neutral for FY 21
Please note that the final impact is subject to changing spot rates, changes in the footprint, ability to adjust pricing, and before hedging results.