Signify and Wageningen University Extend Partnership to Advance LED Lighting in Horticulture (2023/09/05)
Signify (Euronext: LIGHT), a global leader in lighting solutions, and Wageningen University & Research have announced the extension of their collaboration at the Innovation & Demonstration Center in Bleiswijk (IDC-LED). The renewed partnership aims to intensify research into energy-efficient and cost-effective lighting strategies for horticultural crops. This comes at a critical time when the industry grapples with soaring energy prices.
The IDC-LED has been a part of Wageningen University & Research’s Bleiswijk research site since 2013. Signify has equipped the facility with cutting-edge Philips GreenPower LED installations and control software. The center comprises two greenhouses with twelve and fourteen cultivation tables and a separate greenhouse for high-wire cultivation. Each area features LED modules that can be individually controlled for light intensity and spectrum, offering a versatile research environment.
Over the past ten years, the collaboration has yielded significant insights into the role of light in horticulture. According to Anja Dieleman, lead researcher at Wageningen University & Research, the research has directly influenced the industry. “Full LED light recipes have been developed for crops like rose, cucumber, chrysanthemum, and alstroemeria. The transition from traditional HPS installations to LEDs has resulted in lower electricity consumption while maintaining crop quality,” she said.
A recent study on the potential of dynamic lighting, which involves varying light intensities and spectra, shows promise for practical application. Esther de Beer, Global Manager of the plant specialist team at Philips LED, highlighted that the strategy could help growers adapt to rising energy costs. “Installations are now being switched more frequently to make the most of relatively cheaper lighting hours,” de Beer explained.
In a recent experiment at IDC-LED, young tomato plants were subjected to various lighting conditions. The study found that temporary dimming of light yielded similar growth results to continuous full lighting, suggesting that minimal light is sufficient for maintaining the growth process.
Both parties believe that as more data becomes available, dynamic lighting will play a crucial role in energy management for greenhouse horticulture companies. “The IDC-LED will continue to prove its value in the coming years,” concluded de Beer.
Signify Q2 2023: Sales Decline Amid Continued Market Challenges (2023/07/28)
Signify (Euronext: LIGHT), a world leader in lighting, has released its second quarter 2023 financial results, revealing specific challenges within the horticulture and indoor lighting sectors. Despite a nominal sales decline of 10.5%, the company has reported progress in sustainability and structural adaptation efforts to navigate market conditions.
Signify’s indoor professional and horticulture lighting sectors have been hit by a weak market, which, along with a slower-than-expected recovery in the Chinese market, has contributed to the overall sales decline. In contrast, strength was noted in the outdoor professional lighting sector.
Signify’s indoor professional and horticulture lighting sectors saw a decline in comparable sales by 5.7%. This occurred despite the main contribution to the company’s “Circular” revenues from serviceable and upgradeable luminaires, including the first serviceable horticulture product family. Notably, these “Circular” revenues remained stable at 29%, keeping Signify on track to reach its 2025 target of 32%.
CEO of Signify, Eric Rondolat, acknowledged the impact of the soft market on these divisions. “In the second quarter, we saw continued softness in the consumer, indoor professional, and OEM channels and a slower than anticipated recovery of the Chinese market,” said Rondolat.
However, Signify has already begun taking action to adapt to these challenges. The company has started implementing structural measures to optimize its cost structure and enhance performance, specifically focusing on growth opportunities. Despite the market’s current conditions, the company remains optimistic about its cash flow generation and its progression towards the “Brighter Lives, Better World 2025” sustainability commitments.
The financial results of Q2 2023 highlight a challenging period for Signify, particularly within the horticulture and indoor lighting sectors. However, with a firm commitment to sustainability and strategic measures to improve its cost structure, Signify is poised to navigate these market challenges while keeping its eye on future growth opportunities.
Reports A Drop In Horticulture Sales In Q1 2023 (2023/05/03)
Signify, a global leader in lighting, reported its Q1 2023 results, showing growth in installed connected light points from 114 million to 117 million but facing a nominal sales decline of 6.1% and a comparable sales growth (CSG) of -9.1%, resulting in total sales of EUR 1,678 million. LED-based sales constituted 82% of total sales, down from 84% in Q1 2022, and the adjusted EBITA margin decreased from 10.5% to 8.9%. Net income for the quarter was EUR 28 million, dropping from EUR 87 million in the previous year. However, free cash flow showed a substantial recovery, rising to EUR 51 million, primarily due to improvements in working capital. Despite facing challenges in Q1, the company’s CEO, Eric Rondolat, confirmed guidance for the year, anticipating potential improvements in the second half of 2023 and noting efforts to double the pace of the Paris Agreement. In the horticulture sector, nominal sales declined by 3.0%, affected by an 8.7% drop in comparable sales, and the Adjusted EBITA margin declined by 100 basis points to 8.7%, attributed to factors such as under-absorption of fixed costs and adverse currency effects.
Signify Partners with Greenhouse System USA to Offer Philips Horticulture LED Lighting (2023/01/06)
Signify has partnered with Greenhouse System USA, a California-based greenhouse manufacturing and construction firm, to provide Philips horticulture LED lighting as part of their custom greenhouse solutions. Founded in 1984 and collaborating with Dutch firm Ammerlaan Construction, Greenhouse System USA will leverage this partnership to enhance its offerings. It will enable further customization in new greenhouse builds with high-quality, energy-saving LED lighting. The President of Greenhouse System USA, Peter Fryn, sees the partnership as a means to expand the company’s portfolio to benefit customers and the environment. Signify’s U.S. Sales Leader for the Philips horticulture LED team, Henry Olson, emphasized that this partnership aligns with the company’s goal to be the premier LED lighting provider in the horticulture industry and reflects its ongoing efforts to expand its network of certified partners in the US and Canada.
Signify Reports Its Q4 & Full-year Results (2023/01/30)
Signify, the global leader in lighting, has reported robust results for the year ending 2022, highlighting continued growth in the connected lighting market, with connected light points increasing from 96 million to 114 million. Full-year sales reached EUR 7,514 million, including a 9.5% nominal sales increase and a 1.2% CSG. LED-based sales accounted for 83% of total sales, and the company achieved an adjusted EBITA margin of 10.1% and a net income of EUR 532 million. The fourth quarter saw sales of EUR 1,978 million and an adjusted EBITA margin of 10.2%, leading to a proposed dividend increase to EUR 1.50 per share for 2022. Signify’s focus for 2023 includes improving profitability and returning to a level of free cash flow, with forecasts of an adjusted EBITA margin of 10.5-11.5% and free cash flow of 6-8% of sales. These results underscore the company’s commitment to its shareholders and sustainability, as reflected in its progress under the “Brighter Lives, Better World 2025” program and recognition from the CDP’s Climate A List and the DJSI World Index.
Plans Expansion of Lighting Business in Egypt (2022/12/02)
In an interview with Zawya, Mohamed Saad, President, and CEO of the NEA region for the Dutch lighting giant, Signify, outlined the company’s target markets in Egypt, including vertical farms, poultry, sports, and public infrastructure. Saad emphasized the company’s growth in Egypt, especially in the horticulture sector, where they provided lighting solutions for the country’s first controlled environment farm producing leafy greens. Signify’s newly introduced UV-C lighting systems have been implemented in various places, including supermarkets and gyms, and its poultry lighting solutions are now in use at specific farms. Reflecting on Signify’s achievement of carbon neutrality in 2020 through 100% renewable electricity and its project “Brighter Lives, Better World 2025,” Saad also highlighted Egypt as an emerging powerhouse market where the company plans to expand local production, with locally sourced components expected to rise to 80%.
Signify (AMS: LIGHT) Reports Improvements Despite Market Volatility (2022/10/28)
Signify (AMS: LIGHT) reported its Q3 earnings, showcasing solid growth with sales reaching USD 1.9 billion, reflecting improvements over Q2, despite an increasingly volatile operating environment. The strong performance in the professional business segment offset lower consumer demand and a slowdown in China, allowing the company to improve profitability despite challenges like energy costs and currency fluctuations. Q3 sales in the Digital Solution segment rose to EUR 1,103 million, with 12.0% comparable sales growth and a 39.0% increase in Adjusted EBITA to EUR 124 million. The impact of Fluence and Pierlite’s acquisition by Signify and favorable currency effects also contributed to this growth in the horticulture segment. Given continued uncertainties, especially in the consumer segment and Chinese market, Signify expects a comparable sales growth of 2-3% for 2022 and is targeting the lower end of guidance ranges for Adjusted EBITA margin (11.0-11.4%) and free cash flow (5-7%), as stated by CEO Eric Rondolat.
Signify Secured The Highest Industry Score in the 2022 S&P Global Corporate Sustainability Assessment (2022/09/26)
Signify, the global leader in lighting, has achieved the highest industry score in the 2022 S&P Global Corporate Sustainability Assessment, receiving 88 points out of a possible 100 as of September 23, 2022. The high rating, which includes total scores (100/100) in 64 categories such as Climate Change Strategy, Scope 3 GHG Emissions, Risk Culture, and Product Design, reinforces Signify’s position as a sustainability leader under its “Brighter Lives, Better World 2025” program. This accolade reflects two years of carbon-neutral operations and the company’s aim to double its positive impact on the environment and society. The achievement positions Signify to secure its place in the Dow Jones Sustainability World Index for the sixth consecutive year, underscoring CEO Eric Rondolat’s pride in its commitment to energy-efficient technologies and positive global impact.
Signify Reports FQ2 & Updates on Sustainability Program (2022/07/29)
Signify’s second quarter of 2022 witnessed growth in its connected light points, rising from 100 million to 103 million. Financially, the company also exhibited a robust performance, with sales reaching EUR 1,836 million, marking a 14.1% nominal increase. LED-based sales now represent 84% of total sales, up from 82% in Q2 2021. The Adjusted EBITA margin dropped slightly to 9.5%, and net income significantly increased to EUR 248 million. During this period, Signify completed acquisitions of Fluence and Pierlite and divested non-strategic real estate assets. Despite challenges from external factors such as lockdowns in China, the war in Ukraine, and a weaker consumer environment, CEO Eric Rondolat affirmed the company’s strong traction in the professional segment.
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