Signify announces third-quarter results

Signify recently announced its financial results for the third quarter of 2022. The company achieved sales of €1.912 billion (approximately RMB 13.819 billion) in Q3, representing a nominal growth of 16.3% and comparable growth of 4.3%. Net income reached €112 million (approximately RMB 809 million), an increase compared to €94 million in the same period last year.

"In the third quarter, we achieved robust profit growth in an increasingly volatile environment. The strong performance of our Professional business offset the impact of declining consumer demand and the continued slowdown in China's economy. Despite the impact of energy costs and exchange rate fluctuations, we successfully improved profitability compared to the second quarter. As expected, free cash flow increased, driven by improved profitability and stable working capital. Given the uncertainty in the near-term outlook, the continued weakness in the consumer segment and the Chinese market, we now expect comparable sales growth of 2% to 3% for the full year 2022," said CEO Eric Rondolat. "

By business segment, the Digital Solutions business (Digital Solution) saw Q3 sales rise to €1.103 billion, with nominal sales growth of 30.0% and comparable sales growth of 12.0%, primarily driven by strong demand in professional segments across most markets. The acquisitions of Fluence and Pierlite in the second quarter contributed an 8.4% impact.

Digital Products business (Digital Products) achieved sales of €609 million in Q3, with nominal sales up 3.7% and comparable sales down 2.5%. During the quarter, the division’s LED electronics performed steadily, while sales related to the consumer business declined.

传统产品业务（Conventional Products）Q3随着价格上涨，销售额下降至1.95亿欧元，可比销售额下降9.5%，名义销售额下降3.2%。

By regional market, most markets saw growth in the third quarter driven by strong demand in the professional segment. In Europe, comparable sales increased by 16.0%, driven by strong growth in markets excluding Eastern Europe. Comparable sales in the Americas grew by 5.4%, with most markets maintaining steady growth. In the rest of the world, sales declined by 0.8%, mainly due to weak performance in the Chinese market. Additionally, Klite and Fluence were affected by challenging market conditions.

Signify stated: "As we enter the final quarter of 2022, we have adjusted our strategy to adapt the company to a structurally weaker external environment in the coming quarters, as current headwinds and volatility may persist. Therefore, we will focus on measures to control costs and cash flow. Although some regions will be more affected, smart connected energy saving lighting solutions will continue to benefit from strong demand due to soaring energy prices."