2nd December 2022
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Signify (AMS:LIGHT) Reports Improvements Despite Market Volatility

Signify (AMS:LIGHT) Philips Greenpower

Signify (AMS:LIGHT) today reported its third-quarter earnings with sales reaching USD 1.9Bn with solid margins despite the increasingly volatile environment they are operating in showing some level of improvements compared to the second quarter.

“In the third quarter, we delivered solid topline growth in an increasingly volatile environment. The strong performance of our professional business compensated for lower consumer demand and the continued slowdown in China. We managed to improve profitability compared to the second quarter despite the impact of energy costs and currency movements. As expected, our free cash flow generation strengthened, driven by improved profitability and the stabilization of our working capital. Given the uncertain near-term outlook and the continued softness of the consumer segment and of the Chinese market, we now expect to achieve comparable sales growth between 2% and 3% for the full year 2022. Regarding the adjusted EBITA margin and free cash flow, we are targeting the lower end of both guidance ranges,” said CEO of Signify (AMS:LIGHT) Eric Rondolat commenting on the results.

Digital Solution Third quarter

Sales increased to EUR 1,103 million with a comparable sales growth of 12.0% (Q3 21: -7.3%), driven by strong professional demand in most markets. Nominal sales grew by 30.0%, including a positive currency effect of 9.7% and an impact of 8.4% from the acquisition of Fluence and Pierlite in the second quarter. Adjusted EBITA increased by 39.0% to EUR 124 million. The Adjusted EBITA margin improved by 70 bps to 11.2%, as price increases and operating leverage more than compensated higher input costs and a negative impact from currency movements.

Outlook

Given the uncertain near-term outlook and the continued softness both of the consumer segment and of the Chinese market, the company now expect to achieve comparable sales growth between 2% and 3% for the full year 2022. “We are targeting the lower end of the range for both the 11.0-11.4% Adjusted EBITA margin guidance and the 5-7% free cash flow guidance.” mentions the company in their press release.

Image provided by Signify (AMS:LIGHT)

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