Second quarter 20191
- Signify’s installed base of connected light points increased from 47 million in Q1 19 to 50 million in Q2 19
- CSG growing profit engines -2.3%; CSG total Signify -6.1%
- LED-based comparable sales grew by 0.2% to 77% of sales (Q2 18: 70%)
- Adj. indirect costs down EUR 37 million on a currency comparable basis, a reduction of 8%, or 60 bps of sales
- Adj. EBITA margin improved by 60 bps to 9.0%, including currency impact of +20 bps
- Net income improved by 73% to EUR 50 million (Q2 18: EUR 29 million)
- Free cash flow amounted to EUR 121 million (Q2 18: EUR -31 million), mainly driven by higher income andphasing of payables and receivables
Half year 20191
- CSG growing profit engines -0.7%; CSG total Signify -4.7%
- LED-based comparable sales grew by 1.9% to 76% of sales (H1 18: 69%)
- Adj. indirect costs down EUR 77 million on a currency comparable basis, a reduction of 8%, or 120 bps of sales
- Adj. EBITA margin improved by 70 bps to 8.4%, despite currency impact of -60 bps
- Net income improved to EUR 95 million (H1 18: EUR 49 million)
- Free cash flow increased to EUR 175 million (H1 18: EUR -37 million)
Eindhoven, the Netherlands – Signify (Euronext: LIGHT), the world leader in lighting, today announced the company’s 2019 second quarter results. “We are satisfied with the ongoing improvement in the operational profitability and cash generation of our businesses in the second quarter. Sales declined mainly due to economic headwinds in Europe and non-recurring country-specific developments in growth markets,” said CEO Eric Rondolat. “While market conditions remain challenging, the solid momentum in our growth platforms, our relentless focus on operational efficiencies and our strong free cash flow profile position us well for the future.”
Outlook
We confirm our outlook that in 2019 our growing profit engines (LED, Professional and Home combined) are expected to deliver a comparable sales growth in the range of 2% to 5%. Our cash engine, Lamps, is expected to decline at a slower pace than the market, in the range of -21% to -24% on a comparable basis. For total Signify, we aim to reach an Adjusted EBITA margin in 2019 within the range of 11% to 13% set at the time of the IPO in May 2016. In 2019, we expect free cash flow, excluding the positive impact from IFRS 16, to be above 5% of sales.