First Quarter 2019
- Signify’s installed base of connected light points increased from 34 million in Q1 18 to 47 million in Q1 19
- CSG growing profit engines 1.1%; CSG total Signify -3.3%
- LED-based comparable sales grew by 3.6% to 73% of sales (Q1 18: 68%)
- Adj. indirect costs down EUR 39 million on a currency comparable basis, a reduction of 8%, or 170 bps of sales
- Adj. EBITA margin improved by 80 bps to 7.8%, despite a negative currency impact of -130 bps
- Net income more than doubled to EUR 44 million (Q1 18: EUR 20 million)
- Total free cash flow of EUR 55 million (Q1 18: EUR -6 million)
- Signify 2019 outlook confirmed
EINDHOVEN, the Netherlands – Signify announced the company’s 2019 first-quarter results. “We are satisfied with the 1.1% sales growth of our growing profit engines in the first quarter, against the backdrop of headwinds in China and Europe,” said CEO Eric Rondolat. “Continued progress in our simplification actions resulted in a further improvement in our profitability, and our free cash flow remained solid. While market conditions remain challenging, we continue to invest in our growth platforms and rigorously improve our operational efficiency.”
Outlook
In 2019, our growing profit engines (LED, Professional and Home combined) are expected to deliver a comparable sales growth in the range of 2 to 5%. Our cash engine, Lamps, is expected to decline at a slower pace than the market, in the range of -21 to -24% on a comparable basis. For total Signify, we aim to reach an Adjusted EBITA margin in 2019 within the range of 11 to 13% set at the time of the IPO in May 2016. We expect free cash flow in 2019 to be above 5% of sales.
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Conference call and audio webcast
Eric Rondolat (CEO) and Stéphane Rougeot (CFO) will host a conference call for analysts and institutional investors at 9:00 a.m. CET to discuss first quarter results. A live audio webcast of the conference call will be available via the Signify Investor Relations website.
Financial calendar
May 14, 2019: Annual General Meeting of Shareholders
July 26, 2019: Second quarter and half year results 2019
October 25, 2019: Third quarter results 2019
¹This press release contains certain non-IFRS financial measures and ratios, such as comparable sales growth, EBITA, adjusted EBITA and free cash flow, and related ratios, which are not recognized measures of financial performance or liquidity under IFRS. For a reconciliation of these non-IFRS financial measures to the most directly comparable IFRS financial measures, see appendix B, Reconciliation of non-IFRS financial measures, of this press release.