Signify, the global leader in lighting, has announced strong results for the year ending 2022. The company’s connected light points increased from 96 million to 114 million, reflecting continued growth in the connected lighting market. Full-year sales were EUR 7,514 million, with a 9.5% nominal sales increase and a 1.2% CSG.
The company’s LED-based sales accounted for 83% of total sales, driving significant growth in the business. Signify achieved an adjusted EBITA margin of 10.1% and a net income of EUR 532 million. Free cash flow for the year was EUR 445 million, with a net debt to EBITDA ratio of 1.3x.
In the fourth quarter, sales were EUR 1,978 million with an adjusted EBITA margin of 10.2%. Moreover, signify is proposing a dividend increase to EUR 1.50 per share over 2022, reflecting the company’s commitment to returning value to its shareholders.
The focus for 2023 is on improving profitability and returning to the level of free cash flow. Signify’s Brighter Lives, Better World 2025 sustainability program is progressing towards doubling its positive impact on the environment and society. The company was recognized by CDP’s Climate A List and the DJSI World Index in Q4, further reinforcing its commitment to sustainability.
For 2023, the company forecasts an adjusted EBITA margin of 10.5-11.5% and a free cash flow of 6-8% of sales. The capital allocation for the year includes a proposed cash dividend of EUR 1.50 per share for 2022, reflecting the company’s commitment to returning value to its shareholders.
Image provided by Signify
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