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.