June 14, 2024
Signify publishes comparable financials for 2023 and Q1 2024 following
implementation of new organizational structure(1)
Eindhoven, the Netherlands - Signify (https://www.signify.com/) (Euronext:
LIGHT), the world leader in lighting, has published its quarterly comparable
financials for the year 2023 and Q1 2024. Following the implementation of
Signify's new organizational structure on April 1, the company has established
four verticalized businesses with full profit and loss responsibility(2). Each
of these four businesses will be fully responsible for its end-to-end processes
including offer development, manufacturing, and sales & marketing.
The Professional business offers LED lamps, luminaires, connected lighting
systems and services to customers in the professional segment. The Professional
business is the combination of the former Digital Solutions division and
Professional LED lamps and luminaires, which was formerly part of the Digital
Products division.
Reflecting this shift and the reallocation of central costs to the businesses,
the Professional business recorded sales of EUR 4,254 million with an Adjusted
EBITA of EUR 412 million and an Adjusted EBITA margin of 9.7% for the year
2023. In Q1 2024, the Adjusted EBITA margin decreased from 7.9% to 7.4% year on
year.
The Consumer business offers LED lamps, luminaires, and connected products,
including Philips Hue and WiZ, to customers in the consumer segment. The
Consumer business was formerly part of the Digital Products division alongside
Professional LED lamps and luminaires and the OEM business.
Reflecting this shift and the reallocation of central costs to the businesses,
the Consumer business recorded sales of EUR 1,342 million with an Adjusted EBITA
of EUR 120 million and an Adjusted EBITA margin of 8.9% for the year 2023. In Q1
2024, the Adjusted EBITA margin improved from 6.0% to 10.4% year on year.
The OEM business offers lighting components to the industry. The OEM business
was previously part of the Digital Products division and is now set up as a
standalone business.
Reflecting this shift and the reallocation of central costs to the businesses,
the OEM business recorded sales of EUR 457 million with an Adjusted EBITA of EUR
43 million and an Adjusted EBITA margin of 9.4% for the year 2023. In Q1 2024,
the Adjusted EBITA margin decreased from 9.6% to 8.8% year on year.
The Conventional business offers special lighting, digital projection, and lamp
electronics. The Conventional business is similar to the former Conventional
Products division.
Following the reallocation of central costs to the businesses, the Conventional
business recorded sales of EUR 627 million with an Adjusted EBITA of EUR 127
million and an Adjusted EBITA margin of 20.3% for the year 2023. In Q1 2024, the
Adjusted EBITA margin decreased from 22.3% to 17.6% year on year.
'Other' represents amounts not allocated to the businesses and now mainly
includes costs related to ventures, exploratory research and audits. Following
the implementation of the new structure, part of the central costs has been
reallocated to the four vertically integrated businesses. As a result of the
reallocation, 'Other' Adjusted EBITA for 2023 reduced from EUR -86 million to
EUR -31 million.
(1 )This document contains certain non-IFRS financial measures and ratios, such as comparable sales growth, EBITA, adjusted EBITA, and related ratios, which are
not recognized measures of financial performance or liquidity under IFRS. All reported data are unaudited.
(2 )Please refer to appendix A for a visual representation of how the organizational structure has changed.
For further information, please contact:
Signify Investor Relations
Thelke Gerdes
Tel: +31 6 1801 7131
E-mail: thelke.gerdes@signify.com (mailto:thelke.gerdes@signify.com)
Signify Corporate Communications
Tom Lodge
Tel: +31 6 5252 5416
E-mail: tom.lodge@signify.com (mailto:tom.lodge@signify.com)
About Signify
Signify (https://www.signify.com/) (Euronext: LIGHT) is the world leader in
lighting for professionals, consumers and the Internet of Things. Our Philips
(https://www.lighting.philips.com/) products, Interact (https://www.interact-
lighting.com/en) systems and data-enabled services, deliver business value and
transform life in homes, buildings and public spaces. In 2023, we had sales of
EUR 6.7 billion, approximately 32,000 employees and a presence in over 70
countries. We unlock the extraordinary potential of light for brighter lives and
a better world. We have been in the Dow Jones Sustainability World Index
(https://www.spglobal.com/spdji/en/indices/esg/dow-jones-sustainability-world-
index/#overview) since our IPO for seven consecutive years and have achieved the
EcoVadis (https://ecovadis.com/) Platinum rating for four consecutive years,
placing Signify in the top one percent (https://www.signify.com/global/our-
company/news/press-releases/2023/20231129-signify-achieves-ecovadis-platinum-
rating-for-the-fourth-consecutive-year) of companies assessed. News from Signify
can be found in the Newsroom, (https://www.signify.com/news) on X
(https://twitter.com/SignifyCompany/), LinkedIn
(https://www.linkedin.com/company/signifycompany/mycompany/) and Instagram
(https://www.instagram.com/signifycompany/). Information for investors is
located on the Investor Relations (https://www.signify.com/investors) page.
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