Signify’s Third Quarter Results 2023
October 30, 2023
Signify has recently announced the company’s third quarter 2023 results.
“In the third quarter, we continued to recover our gross margin, which is a 2023 priority. Operating margin and free cash flow growth were in line with our expectations. While we see persistent weakness in China, in the connected consumer and LED electronics businesses, we gained market share in the professional segment, driven by strong demand for connected systems and services. We are also pleased to report that we have been able to bring our Conventional Products division back to its historical performance levels,” said Eric Rondolat, CEO of Signify.
“With the visibility we have into the final quarter, we confirm our guidance for the full year. However, we expect macroeconomic external factors to continue to put pressure on our topline in the quarters ahead. We are well positioned by the cost reduction actions that began earlier this year. Further structural measures will be implemented through Q1 2024 to improve our efficiency, speed of execution, and enhance our focus on the growth opportunities presented by the accelerating transition to ultra-efficient LED and connected lighting technologies.”
Brighter Lives, Better World 2025
In the third quarter of the year, Signify was on track to deliver on three of its Brighter Lives, Better World 2025 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 32%, hitting the 2025 target of 32%. The main contribution was from serviceable and upgradeable luminaires, with a strong performance from Cooper this quarter.
- Double Brighter lives revenues
Brighter lives revenues increased to 31%, on track to reach the 2025 target of 32%. This was driven by a strong performance from tunable products that support well-being.
- Double the percentage of women in leadership
The percentage of women in leadership positions decreased to 29%, slightly off track to reach the 2025 target of 34%. Actions to increase women in leadership positions continue, including focused hiring practices for diversity across all levels, and through retention and engagement actions to reduce attrition.
Outlook
Signify confirms its guidance for the full year 2023. The company expects an Adjusted EBITA margin of 9.5-10.5% and free cash flow generation at the higher end of the 6-8% range.
For the full and original version of the press release click here
For the presentation click here
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 third quarter 2023 results. A live audio webcast of the conference call will be available via the Investor Relations website.
Financial calendar 2024
January 26, 2024: Fourth quarter and full-year results 2023
February 27, 2024: Annual Report 2023
