Signify announces Q1 results
Signify recently announced its Q1 2023 results. The company achieved sales of €1.678 billion (approximately RMB 12.836 billion) in Q1, a nominal decline of 6.1%, primarily driven by currency effects and the Acquisition of Fluence, Pierlite, and Intelligent Lighting Controls; comparable sales declined by 9.1%, related to professional indoor business, consumer segments, and OEM channel business. Net income reached €28 million (approximately RMB 214 million).
Key Data for Q1 2023
Sales revenue was €1.678 billion (approximately RMB 12.836 billion); nominal sales decreased by 6.1%, CSG decreased by 9.1% LED-based sales account for 82% of total sales (Q1 2022: 84%) Net income €28 million (Q1 2022: €87 million) Adjusted EBIT margin is 8.9% (Q1 2022: 10.5%) 51 million euros of free cash flow (Q1 2022: 189 million euros) Double the pace of the Paris Agreement Signify's installed base of connected light points increased from 114 million in Q4 2022 to 117 million in Q1 2023
"In line with expectations, the consumer segmentation market and indoor professional business remained weak in Q1 2023, while OEM sales slowed. Meanwhile, we made progress on our 2023 priorities, such as sustained pricing discipline and effective COGS management, which improved our gross margin and restored adjusted EBITDA margins for traditional product segments to historical levels. Driven by improvements in working capital, the company's free cash flow further recovered," said Signify CEO Eric Rondolat.
The report mentions that the Chinese market is still affected by COVID-19, but economic activity has begun to increase after restrictions were lifted.
By business segment, the Digital Solution business saw nominal sales decline by 3.0% to €951 million in Q1, including a favorable currency effect of 1.7% and an impact of 4.0% from the consolidation of Fluence, Pierlite, and Intelligent Lighting Controls.
Digital Products business nominal sales fell 10.6% to €537 million in Q1, due to continued weakness in consumer-related and OEM businesses, partially offset by increased LED lamp sales.
Conventional Products business nominal sales in Q1 fell by 7.6% to €186 million, with price increases partially offsetting the decline in volume.
昕诺飞表示，今年第一季度，公司持续履行“闪亮生活，美好世界2025”可持续发展计划的所有承诺，这些承诺有助于将其对环境和社会的积极影响扩大一倍。其中，将《巴黎协定》的步伐提高一倍，全价值链的碳减排步入正轨，主要受节能和智能互联LED照明的驱动。此外，循环经济收入表现稳健，有望实现2025年的目标，循环经济收入的增加得益于循环灯具的推出。
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