Signify announces first quarter 2022 results

Recently, Signify announced its Q1 2022 financial results. In the first quarter, Signify achieved sales of €1.788 billion (approximately RMB 12.556 billion), a nominal growth of 11.8% and comparable sales growth of 6.4%; Net profit was €87 million (approximately RMB 611 million), a nominal growth of 45%.

ꔷ Key Data ꔷ

· Sales of €1.788 billion; nominal sales growth of 11.8%, comparable growth of 6.4%

· LED-based sales accounted for 84% of total sales (Q1 2021: 82%)

· Adjusted EBITA margin was 10.5% (Q1 2021: 10.8%)

· Net revenue of €87 million (Q1 2021: €60 million)

· Free cash flow -€189 million (Q1 2021: €168 million)

· Signify's installed base of connected light points increased from 96 million in Q4 2021 to 100 million in Q1 2022

“自2月25日起，我们停止在俄罗斯的投资并暂停所有新业务。 我们还受到本季度末中国疫情封控的影响。在这些充满挑战的情况下，昕诺飞在美国和大多数其他地区的专业渠道中继续保持强劲势头，第一季度增长了6.4%。全球供应链中断导致更长的供应商交货周期和更高的库存水平，对我们的现金流产生了负面影响。预计随着时间的推移，这一点将得到积极的调整，”昕诺飞首席执行官 Eric Rondolat表示。

By business segment, the Digital Solution business achieved sales of €981 million in Q1, with comparable sales growth of 16.9% and nominal growth of 23.6%. This was mainly driven by continued growth in professional segments across many markets (especially the United States), as well as strong performance in horticultural lighting.

The Digital Products business achieved sales of €601 million in Q1, with comparable sales growth of 0.2% and nominal growth of 4.5%, primarily driven by the accelerated momentum in the smart home lighting business.

Conventional Products achieved sales of €201 million in Q1, with a comparable sales growth rate decline of 15.1% and a nominal growth rate of -11.5%, mainly affected by rising energy prices and transportation costs.

By regional market, the US market saw the highest growth, with a comparable sales growth rate of 10.3%; in Europe, comparable sales increased by 5.5% as most markets continued to recover; performance in the Chinese market was affected by pandemic lockdowns in March.

Furthermore, in the first quarter of this year, most commitments under Signify's Brighter Lives, Better World 2025 sustainability program were on track, doubling its positive impact on the environment and society.

"Given the growing global demand for sustainable, smart connected and energy saving lighting, we are more focused than ever on our strategic priorities. For the remainder of this year, we expect consumer-centric business performance to be impacted by adverse inflationary factors. Meanwhile, professional business will face strong demand, driven by continued investment in the energy transition. Looking ahead, assuming no further deterioration in the Chinese market and global supply chain issues, the performance expectations for this year remain achievable," said Signify CEO Eric Rondolat. The company is expected to achieve a comparable sales growth rate of 3-6% for the full year.

Notably, on May 2, Signify also announced the successful completion of the Acquisition of Fluence, which will strengthen its global horticultural lighting growth platform and expand and consolidate the company's position in the attractive North American horticultural lighting market. Fluence will operate as a standalone integrated business unit within Signify's Digital Solutions division, focusing on horticultural lighting.