Signify reports third quarter sales of EUR 1.5 billion, operational profitability of 10.5% and a free cash flow of EUR 119 million

Press Release

October 25, 2024

Signify reports third quarter sales of EUR 1.5 billion, operational profitability of 10.5% and a free cash flow of EUR 119 million

Third quarter 2024¹

• Signify's installed base of connected light points increased to 139 million in Q3 24
• On track for three Brighter Lives, Better World 2025 sustainability program commitments
• Sales of EUR 1,537 million; nominal sales decline of -6.8% and CSG of -5.2%
• LED-based sales represented 90% of total sales (Q3 23: 85%)
• Adj. EBITA margin of 10.5% (Q3 23: 10.7%)
• Net income of EUR 108 million (Q3 23: EUR 83 million)
• Free cash flow of EUR 119 million (Q3 23: EUR 152 million)
  
  

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

Eric Rondolat, CEO of Signify, comments:

"As anticipated, our comparable sales growth continues to improve sequentially. Our teams are effectively managing the accelerated decline of our Conventional business and continued slowness in the Chinese market, without which the decline would be limited to -1.3% for the third quarter.

In the Professional business, we saw a recovery in agricultural lighting and continued growth for connected, while our European distribution channel remained weak, particularly in Eastern and Southern Europe. Our Consumer business delivered comparable sales growth of 2.6% excluding China, reflecting the recovery of our business across all other regions. Our OEM business demonstrated two consecutive quarters of growth, driven by a stabilization of inventory levels at our customers.

Despite the shrinking contribution of the Conventional business to EBITA, we have maintained a resilient bottom-line as our cost reduction program delivers the expected benefits. Additionally, we delivered strong free cash flow for the quarter, resulting from our ongoing focus on cash conversion.

We are now very focused on our performance for the fourth quarter and confirm our guidance for an adjusted EBITA margin at the lower end of the 10.0-10.5% range and free cash flow generation of 6-7% of sales for 2024.

As we manage down our Conventional business, we are continuing to invest in connected and specialty lighting. These represent approximately 30% of our business and provide an attractive growth opportunities for our Professional, Consumer and OEM Businesses.

The progress we have driven in the past years uniquely positions us to continue to lead our industry as it enters each new phase of innovation. More than ever, the complementary drivers of innovation and sustainability sit at the heart of everything we do, driving growth opportunities that create long-term value for all our stakeholders.”