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.”