Signify reports first quarter sales of EUR 1.5 billion, operational profitability of 8.3% and a free cash flow of EUR 80 million

Press Release

April 26, 2024

Signify reports first quarter sales of EUR 1.5 billion, operational profitability of 8.3% and a free cash flow of EUR 80 million

First quarter 2024¹

• Signify's installed base of connected light points increased from 124 million in Q4 23 to 126 million in Q1 24
• Achieved reasonable assurance on full Brighter Lives, Better World 2025 program, including scope 3 emissions
• Sales of EUR 1,468 million; nominal sales decline of -12.5% and CSG of -10.1%
• LED-based sales represented 87% of total sales (Q1 23: 82%)
• Adj. EBITA margin of 8.3% (Q1 23: 8.9%)
• Net income of EUR 44 million (Q1 23: EUR 28 million)
• Free cash flow of EUR 80 million (Q1 23: EUR 51 million)
  
  

Eindhoven, the Netherlands – Signify (Euronext: LIGHT), the world leader in lighting, today announced the company’s first quarter 2024 results.

“In the first quarter, we saw improving dynamics in our US Professional, OEM and Consumer businesses, while the market in China remained soft and the European Professional business was substantially below our expectation. Our operating margin was resilient, thanks to gross margin expansion as price dynamics normalize, compensated by bill of material improvements. We also began to see the positive impact of our cost reduction program and strong free cash flow generation, as we continued to improve our working capital,” said Eric Rondolat, CEO of Signify.

“On April 1, we successfully implemented our new organizational structure. The new model brings enhanced focus and accountability to our business from an end-customer perspective, and has earned strong support internally and externally. As the year progresses, we anticipate a sequential comparable sales growth improvement, driven by momentum in the Americas and our OEM and Consumer businesses. The continued effort to manage the gross margin, combined with the implementation of our cost reduction program, will deliver a positive effect on our operating margin in the quarters ahead, in line with our guidance for the full year.”

Brighter Lives, Better World 2025

The first quarter of 2024 marks the start of Signify's fourth year of its Brighter Lives, Better World 2025 sustainability program commitments that contribute to doubling its positive impact on the environment and society.

Double the pace of the Paris Agreement
Signify is ahead of schedule to achieve its 2025 target to reduce emissions across the full value chain by 40% against its 2019 baseline - double the pace required by the Paris Agreement 1.5 degree scenario. In addition, the company has received approval from the Science Based Targets initiative (SBTi) for its ambitious 2040 Net Zero target with a 90% absolute reduction of scope 1, 2 and 3 emissions.