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
26 Gennaio 2024 - 7:00AM
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
Press Release
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 Netherlands –
Signify (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 2025Signify 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
agreementSignify 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
revenuesCircular 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
revenuesBrighter 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
leadershipThe 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.
OutlookFor 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
Capital allocationSignify proposes a cash dividend of EUR 1.55
per share for 2023, in line with its policy to pay an increasing
annual cash dividend per share year on year. The dividend proposal
is subject to approval at the Annual General Meeting of
Shareholders (AGM) to be held on May 14, 2024. Further details will
be provided in the agenda for the AGM.
In line with its aim to maintain a robust
capital structure and an investment grade credit rating, Signify
expects to further deleverage its gross debt and reduce its US
pension liabilities in 2024.
Signify will continue to invest in organic and
inorganic growth opportunities in line with its strategic
priorities.
Conference call and audio webcastEric 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
The analyst presentation is available via this link
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.
- Signify Press Release - Q4 and full-year results 2023
Grafico Azioni Signify NV (TG:G14)
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Da Nov 2024 a Dic 2024
Grafico Azioni Signify NV (TG:G14)
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Da Dic 2023 a Dic 2024