Signify will achieve total sales of 6.143 billion euros in 2024

Recently, Signify announced its Q4 and full-year results for fiscal year 2024. Due to the accelerated decline of traditional business, the weakness of European professional lighting business and Chinese business, and on the other hand, the agricultural lighting business shows signs of rebound in 2024, Signify sales continued to decline, but the decline slowed down. In addition, it is worth noting that due to the year-on-year decrease in restructuring costs and financial expenses, Signify’s net profit increased in both the fourth quarter and the full year. In detail, for the full year of 2024, Signify achieved total sales of 6.143 billion euros (approximately RMB 46.220 billion), nominal sales fell by 8.4%, and comparable sales fell by 6.6%;

Adjusted profit before interest, taxes, and amortization was 606 million euros, a year-on-year decrease of 9.6%. The adjusted profit margin before interest, taxes, and amortization was 9.9%, a slight decrease year-on-year; the full-year net profit was 334 million euros, a year-on-year increase of 55.3%; the free cash flow was 438 million euros, accounting for 7.1% of sales. In 2024, Signify's LED product sales will account for 93% of total sales (2023: 85%). Although the current traditional lighting business continues to decline, Signify has promoted the growth of other businesses through cost strategies. With the continued implementation of cost strategies, Signify saved 131 million euros throughout the year and successfully reduced debt by 440 million euros.

In the fourth quarter of fiscal year 2024, Signify achieved total sales of 1.655 billion euros (approximately RMB 12.465 billion), nominal sales fell by 4.6%, and comparable sales fell by 2.8%; adjusted profit before interest, tax, and amortization was 205 million euros, a year-on-year decrease of 1.9%. The company's net profit in the fourth quarter was 119 million euros, a year-on-year increase of 101.3%. Free cash flow was 188 million euros, down from the same period in 2023. It is reported that although the Chinese market and European professional lighting business are still facing challenges, Signify's business has gradually improved in the fourth quarter, especially the consumer lighting business, and the intelligent interconnection and special lighting businesses have also continued to grow.

In order to face the sluggish demand in the global LED lighting market and continue to implement cost reduction and efficiency improvement strategies, Signify officially implemented a new organizational structure in 2024, dividing the business into four independently operated vertical departments: professional business (Professional), consumer business (Consumer), OEM business (OEM), and traditional business (Conventional). In the face of sluggish demand in the global lighting market in 2024, Signify's sales in all business units have declined, and the profit margin before interest, tax, and amortization has increased after some business adjustments. Professional business (Professional): Full-year sales were 3.933 billion euros, nominal sales fell by 7.6%, and comparable sales fell by 5.8%, mainly due to the decline in demand in the European indoor professional lighting market and the weakness of the Chinese construction industry; the adjusted profit margin before interest, tax, and amortization dropped to 9.3%.

Consumer business (Consumer): Full-year sales were 1.297 billion euros, nominal sales fell by 3.4%, and comparable sales fell by 1.2%; the adjusted profit margin before interest, taxes, and amortization increased to 11.1%. OEM business (OEM): full-year sales were 437 million euros, with nominal sales down 4.5% and comparable sales down 2.0%; the adjusted profit margin before interest, taxes, and amortization increased to 11.1%. Traditional business (Conventional): full-year sales were 437 million euros, nominal sales fell by 30.2%, comparable sales fell by 29.2%; the adjusted profit margin before interest, taxes, and amortization dropped to 17.9%. The decline in performance was mainly due to the continued impact of the ban on fluorescent lamps in Europe, which exacerbated the structural decline in business.

For 2025, Signify expects that the company’s sales will continue to improve throughout the year (excluding traditional businesses). Signify also expects that the company’s adjusted EBITDA margin will remain stable in 2025, and that the combined revenue of its professional, consumer and OEM businesses will make up for the downturn in its traditional business. Signify aims to achieve free cash flow accounting for 7%-8% of sales in 2025.