Signify reports Q4 and full-year 2021 results

Global lighting leader Signify recently announced its financial results for the fourth quarter and full year of 2021. Sales in Q4 2021 reached €2.008 billion (approximately RMB 14.597 billion), representing a 4.5% increase in comparable sales; full-year 2021 sales totaled €6.86 billion (approximately RMB 49.869 billion), with a 3.8% growth in comparable sales.

Q4 2021

Sales amounted to €2.008 billion, with comparable sales growth of 4.5%

Orders increased by 67% in Q4 2021 compared to Q4 2020

Adjusted EBITA margin is 13.2% (Q4 2020: 13.4%)

Net income €170 million (Q4 2020: €137 million)

Free cash flow €257 million (Q4 2020: €332 million)

Full year 2021

Sales amounted to €6.86 billion; comparable sales grew by 3.8%

LED-based sales account for 83% of total sales (FY2020: 80%)

Adjusted EBITA margin is 11.6% (FY2020: 10.7%)

Net income was €407 million (FY2020: €335 million)

Free cash flow was €614 million, representing 8.9% of sales (FY2020: €817 million)

Signify's installed base of connected light points increased from 77 million in 2020 to 96 million in 2021

"Strong demand for smart connected lighting and the growth platform, combined with the delivery of deferred orders, enabled us to achieve a 4.5% comparable sales growth in the fourth quarter. Despite significant increases in raw material, component, and logistics costs, the company expanded its operating profit margin for the eighth consecutive year, improving by 90 basis points. This was driven by the strong performance of two digital segments, which now account for over 80% of sales, profit, and cash flow. Furthermore, throughout the year, we made significant progress in doubling our positive impact on the environment and society," said Philips Lighting CEO Eric Rondolat.

By business segment, in the fourth quarter, digital Solution sales increased to €1.045 billion, with comparable sales up 11.2%, driven mainly by strong growth in many markets, including a solid contribution from Cooper Lighting. Year-to-date sales grew 8.3% to €3.524 billion, with comparable sales up 3.4%.

Digital Products business Q4 sales grew 3.7% to €737 million; LED electronics and Klite (Kaiyao) performed particularly strongly, while smart home lighting business remained stable. Cumulative full-year sales grew 7.2% to €2.452 billion, with comparable sales up 8.8%. Despite supply chain constraints and component shortages, results were solid, driven by strong demand in smart home lighting and professional lighting sales.

Sales of traditional product business fell by 9.5% to €219 million in the fourth quarter, with comparable sales down 11.4%. Cumulative annual sales dropped to €861 million, a decrease of 8.7%, while comparable sales fell by 6.9%.

Furthermore, in the fourth quarter, Signify completed the first year of its Brighter Lives, Better World 2025 sustainability program, making substantial progress in doubling its positive environmental and social impact. This includes doubling the pace of achieving Paris Agreement goals, doubling circular revenue to 32%, doubling 'Brighter Lives' related revenue to 32%, and doubling the proportion of women in leadership roles to 34%. Signify also ranked in the top 1% of its industry in the S&P Global Corporate Sustainability Assessment and was included in the Dow Jones Sustainability Index for the fifth consecutive year, highlighting its leadership in sustainability.

“虽然预计今年上半年的不确定性仍然很高，但我们有信心以与过去两年一样的敏捷性来应对这种波动。2021年的成绩为公司在2022年实现又一年的增长奠定了坚实的基础。同时还将受到对增长平台的持续投资的推动，例如收购Fluence。全球对节能和数字照明技术的需求持续增长，而昕诺飞已做好充分准备来抓住由此带来的机会和潜力，”昕诺飞首席执行官Eric Rondolat进一步表示。