Signify announced its third quarter results, with sales in the first three quarters reaching approximately 39.8 billion yuan.

Recently, Signify released its third quarter financial report. Due to stable demand for professional lighting, Signify achieved performance growth in most regional markets.

In the third quarter, Signify achieved sales of 1.912 billion euros (approximately RMB 13.819 billion), a nominal growth of 16.3%, and comparable sales growth of 4.3%, of which LED product sales accounted for 83% of total sales; it achieved net profit of 112 million euros (approximately RMB 809 million), an increase of 18.4% from 94 million euros in the same period last year.

In the first three quarters, Signify achieved sales of 5.536 billion euros (approximately RMB 39.826 billion), a nominal growth of 14.1%, and comparable sales growth of 5.3%; it achieved net profit of 447 million euros (approximately RMB 3.216 billion), an increase of 89% from 236 million euros in the same period last year.

Signify said that in the third quarter, the company's professional lighting business performed strongly, making up for the impact of declining consumer demand and the continued slowdown of the Chinese market on the company's performance. Despite the impact of energy costs and exchange rate factors, the company's profitability improved in the third quarter compared with the second quarter.

In terms of regional markets, most markets achieved growth in the third quarter due to stable demand for professional lighting. In Europe, benefiting from the stable growth of the European market except Eastern Europe, comparable sales in the European region increased by 16.0%. In the Americas, most markets showed high growth rates, resulting in comparable sales growth of 5.4% in the Americas region.

In other regions, comparable sales fell by 0.8%, mainly due to the weak performance of the Chinese market. In addition, its subsidiaries Klite and Fluence were affected by the depressed market environment, and global business comparable sales fell by 18.7%.

In terms of business, in the Digital Solutions business, sales increased to 1.103 billion euros in the third quarter, and comparable sales increased by 12%, mainly driven by strong professional lighting demand in most markets; nominal sales increased by 30.0%, including 9.7% brought about by positive currency effects, and the acquisition of Fluence and Pierlite in the second quarter brought about 8.4% growth.

Digital Products achieved sales of 609 million euros in the third quarter, with nominal sales increasing by 3.7% and comparable sales falling by 2.5%. In the third quarter, the division's LED electronics products performed solidly, but sales related to its consumer business declined.

Sales of the Conventional Products business in the third quarter fell to 195 million euros, with comparable sales falling 9.5%. Increased product prices offset part of the impact of lower sales; nominal sales fell 3.2%.

In view of the uncertain market outlook in the near future and the continued weakness in the consumer and Chinese regional markets, Signify expects full-year comparable sales growth in 2022 to be approximately 2% to 3%.

For the fourth quarter, Signify said that in order to adapt to the volatility risks that may still exist in the external environment, the company will focus on cost and cash flow control, maintain profit margin growth and expand free cash flow. Signify believes that although some regions will have a negative impact on the company's performance, the company's demand for Internet lighting solutions will continue to increase due to soaring energy prices.