Signify announces Q4 and full-year results for 2022
Global lighting leader Signify recently announced its Q4 and full-year 2022 results, maintaining steady growth. According to the financial report, Signify achieved sales of €7.514 billion (approximately RMB 55.109 billion) in 2022, representing a nominal growth of 9.5%, primarily driven by the appreciation of the US dollar and a positive impact of 2.4% from the acquisition of Fluence and Pierlite. Comparable sales grew by 1.2%, benefiting from increased demand in professional sectors, though partially offset by weakness in China (due to COVID-related impacts) and the consumer sector.
In this period, sales reached €1.978 billion in Q4 2022, a slight decline.
Full year 2022
Sales amounted to €7.514 billion; nominal growth of 9.5%, comparable growth of 1.2%
LED-based sales accounted for 83% of total sales (2021: 83%)
Adjusted EBITA margin was 10.1% (2021: 11.6%)
Net income was €532 million (2021: €407 million)
Free cash flow was €445 million (2021: €614 million)
The installed base of connection points increased from 96 million in 2021 to 114 million in 2022
Q4 2022
Sales amounted to €1.978 billion; nominal sales decreased by 1.5%, comparable sales decreased by 8.8%
Adjusted EBITA margin was 10.2% (Q4 2021: 13.2%)
Net income was €86 million (Q4 2021: €170 million)
Free cash flow was €364 million (Q4 2021: €257 million)
"2022 was a challenging year. The external environment became increasingly unstable, leading us to adjust our corporate targets accordingly. Although profitability and cash were impacted by inflation and supply chain disruptions, sales in our smart connected lighting business and growth platform reached nearly €2 billion. As energy efficiency receives greater attention, the relevance of our products and solutions in this area has further strengthened, reinforcing our competitive position. Signify brings continuously innovative and sustainable lighting solutions to customers and continues to make progress in doubling its impact on the environment and society," said Eric Rondolat, CEO of Signify.
By business segment, Digital Solutions (Digital Solution) reported nominal sales growth of 20.1% in 2022 to €4.231 billion, including a 7.3% positive currency effect and a 5.0% positive impact from the acquisitions of Fluence and Pierlite. Comparable sales grew 7.8%, driven primarily by growth in most markets, despite some slowdown in the fourth quarter. Smart connected lighting products accounted for 22% of sales, flat compared to 2021.
Digital Products Business (Digital Products) nominal sales grew 0.7% in 2022 to €2.469 billion, driven by a favorable currency effect of 4.4%. Comparable sales fell 3.8% due to declines in consumer business sales and the impact of the pandemic in China.
Conventional Products Business (Conventional Products) nominal sales declined 7.9% to €793 million in 2022, including a favorable currency effect of 4.6%. Comparable sales fell 12.6% as volume declines were partially offset by price increases.
By regional markets, demand in the professional sector continued to grow in most markets despite a slowdown in the fourth quarter, while demand in the consumer sector showed weakness. In Europe, comparable sales grew 3.9%, with growth across European markets except for Eastern Europe and the UK affected by the war in Ukraine. In the Americas, comparable sales grew 3.2%, significantly contributed by Cooper Lighting. In other regions worldwide, comparable sales fell 1.5%, mainly due to impacts from China, the Middle East, and South Korea.
"Looking ahead, we expect volatility to continue in the first half of 2023, with performance improving in the second half. Regarding the decline in performance and profitability of traditional products, Signify will strengthen related management and respond actively. At the same time, we will further promote the company's transformation towards energy saving, smart connectivity, and sustainable lighting solutions," said Signify.