Signify reports results for the third quarter of 2024.

Signify reports results for the third quarter of 2024: €1.5 billion in sales; operating profitability at 10.5% and free cash flow amounting to €119 million.

Third quarter 2024^[1]:

• The number of installed integrated light points increased to 139 million.
• The company is in the process of fulfilling three commitments of the sustainable development program “Brighter Life, Better World 2025”.
• Sales at €1,537 million; nominal sales decrease of -6.8%; in the CSG sector by -5.2%.
• LED sales accounted for 90% of total sales (Q3 2023: 85%).
• Adjusted EBITA margin at 10.5% (Q3 2023: 10.7%).
• Net income of €108 million (Q3 2023: €83 million).
• Free cash flow amounting to €119 million (Q3 2023: €152 million).

Signify (Euronext: LIGHT), a global leader in lighting, announced financial results for the third quarter of 2024. They are discussed by Signify’s CEO, Eric Rondolat:

• As expected, we are seeing a sequential increase in sales. Our teams effectively mitigate the impact of a decrease in activity in the conventional sector and a continued slowdown in the Chinese market, without which the decline in sales in the third quarter would be limited to -1.3%.
• In the professional segment, we observed a revival of the agricultural lighting sector and steady growth in integrated lighting. The European distribution channel remained weak, especially in Eastern and Southern Europe. Consumer activity showed a comparable sales growth of 2.6% excluding China, reflecting a revival of activity in all other regions. OEM activity showed two consecutive quarters of growth, driven by stabilization of inventory levels at our customers.
• The cost reduction program delivered the expected benefits. Despite a declining share of conventional business in EBITA, we maintained a stable financial result. In addition, we recorded high free cash flows this quarter, resulting from our continued focus on cash conversion.
• We now focus on results for the fourth quarter and confirm forecasts for the adjusted EBITA margin at the lower end of the 10.0-10.5% range and for generating free cash flow at 6-7% of sales in 2024.
• As we scale back conventional business, we continue to invest in integrated and specialty lighting. They account for about 30% of our business and provide attractive growth opportunities for Signify in professional, consumer and OEM activity.
• The results we have achieved in recent years enable us to remain a leader in the industry, as it enters every new phase of innovation. More than ever, complementary drivers of innovation and sustainable development are at the center of everything we do, accelerating growth that creates long-term value for all our stakeholders.

Program “Brighter Life, Better World 2025”

In the third quarter, the company continued implementing commitments under the “Brighter Life, Better World 2025” sustainable development program, contributing to doubling its positive impact on the environment and society.

Twice the speed of implementing the Paris Agreement

Signify is well on its way to reduce emissions across its value chain by 40% compared to 2019 levels–twice as fast as required by the Paris agreement. This stems from Signify’s leading position in energy-saving and integrated LED lighting solutions that significantly reduce emissions during the use phase.

Doubled Circular Revenues

Revenues from circular activities increased to 36.7%, up 1.7% compared to the previous quarter, and exceeded the 2025 target of 32%. Professional lighting fixtures in both Americas were the biggest contributors.

Double Income in “Brighter Life, Better World 2025” Program

Revenues in the “Brighter Life, Better World 2025” program are currently at 31.1%, nearly reaching the 32% target for 2025. This includes a strong contribution from consumer products, mainly EyeComfort, which support health and well-being.

Doubling the Percentage of Women in Leadership Positions

The percentage of women in leadership positions remained at 29.3%, which is below the 2025 target of 34%. The company continues efforts to increase overall representation through targeted employment practices for diversity at all levels. It continues to focus on building strong succession channels and engaging actions to minimize departures.

Outlook

Signify continues to expect an adjusted EBITA profit margin at the lower boundary of the 10.0-10.5% range and generating free cash flow at 6-7% of sales.