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April 30, 2021
Signify stories first quarter gross sales of EUR 1.6 billion, operational profitability of 10.8% and a free money stream of EUR 168 million
First quarter 20211
- Signify’s put in base of related mild factors elevated from 77 million in This fall 20 to 83 million in Q1 21
- Sales of EUR 1,599 million; 12.0% nominal gross sales progress and CSG of three.2%
- LED-based gross sales represented 82% of complete gross sales (Q1 2020: 79%2)
- Adj. EBITA margin improved by 290 bps to 10.8%
- Net earnings elevated to EUR 60 million (Q1 20: EUR 27 million)
- Free money stream elevated to EUR 168 million (Q1 20: EUR 112 million)
- Net debt/EBITDA ratio of 1.4x (Q1 20: 2.7x)
Eindhoven, the Netherlands – Signify (Euronext: LIGHT), the world chief in lighting, as we speak introduced the corporate’s first quarter 2021 outcomes.
“Our first quarter performance demonstrates the execution of our strategy, as we report growth driven by our connected businesses and our growth platforms. The adaptive measures we took in 2020, combined with continued pricing discipline, cost and working capital management, resulted in improvements in our operating margin and free cash flow. Our teams have also begun to execute our new ‘Brighter Lives, Better World 2025’ sustainability program, which aims to double our positive impact on the environment and society in 2025,” mentioned CEO Eric Rondolat.
“While we see signs of an economic recovery, supply chain performance is being challenged by component shortages, which are impacting the first half, and will, to a lesser extent, impact the second half of the year. We expect the continued vaccination rollouts and easing of lockdowns to drive an upswing in demand for our professional portfolio in the second half of the year. We are therefore aiming for mid-single digit full-year comparable sales growth and further year-on-year operating margin improvements, driven by our digital businesses.”
Brighter Lives, Better World 2025
In the primary quarter of the yr, Signify made its first steps to realize the formidable targets it set for the Brighter Lives, Better World 2025 sustainability program, making progress on all 4 commitments that contribute to doubling its constructive impression on the setting and society. In addition, the CDP Awards 2021 acknowledged Signify’s management in Climate motion, after the corporate had achieved carbon neutrality for all its operations on the planet in 2020.
In Q1 2021, the corporate has began to make progress towards its ambition of doubling its constructive impression on the setting and society in 2025:
- Double the tempo of the Paris settlement:
Carbon discount over worth chain was 18 million tonnes, for which we set a 2025 goal of 340 million tonnes
- Double our Circular revenues to 32%:
Circular revenues have been 19%, versus the 2019 baseline of 16% and the 2025 goal of 32%
- Double our Brighter lives revenues to 32%:
Brighter lives revenues have been 23%, versus the 2019 baseline of 16% and the 2025 goal of 32%
- Double the share of girls in management positions to 34%:
The share of girls in management positions was 24%, versus the 2019 baseline of 17% and the 2025 goal of 34%
Following the operational efficiency within the first quarter and primarily based on present visibility, Signify now anticipates comparable gross sales progress of three% to six% for the total yr 2021. In addition, Signify expects to realize an Adjusted EBITA margin of 11.5% to 12.5% and continues to anticipate free money stream to exceed 8% of gross sales for the total yr 2021. The firm reassesses its medium-term steerage for the interval 2021-2023 after every monetary yr.
Signify has refinanced EUR 350 million of its long-term debt with short-term loans with a maturity of December 2021 and is subsequently absolutely dedicated to repaying EUR 350 million of debt in This fall 2021.
|in € million, besides percentages||2020*||2021||change|
|Comparable gross sales progress||3.2||%|
|Effects of foreign money actions||-6.4||%|
|Consolidation and different adjustments||15.2||%|
|Adjusted gross margin||545||637||16.9||%|
|Adj. gross margin (as % of gross sales)||38.2%||39.8%|
|Adj. SG&A bills||-393||-424|
|Adj. R&D bills||-67||-72|
|Adj. oblique prices||-460||-496||-7.9||%|
|Adj. oblique prices (as % of gross sales)||32.2%||31.0%|
|Adjusted EBITA margin||7.9%||10.8%|
|Income from operations (EBIT)||43||85||97.6||%|
|Net monetary earnings/expense||-10||-10|
|Income tax expense||-6||-15|
|Free money stream||112||168|
|Basic EPS (€)||0.24||0.47|
* For comparability functions please notice that first quarter 2020 consists of only one month of Cooper Lighting efficiency
Sales amounted to EUR 1,599 million, a nominal enhance of 12.0%, together with a 6.4% adverse foreign money impact. After adjusting for a 15.2% change in consolidation and different adjustments (primarily associated to the consolidation of Cooper Lighting in 2020), comparable gross sales elevated by 3.2%. The return to progress was pushed by sturdy gross sales within the related house class, the restoration in China in addition to an improved efficiency in most of Europe, India and the Middle East. LED-based gross sales accounted for 82% of complete gross sales (Q1 2020: 79%1). The adjusted gross margin elevated by 160 bps to 39.8%, largely pushed by a constructive combine impact from sturdy related house gross sales, pricing self-discipline compensating the preliminary impression of fabric value inflation, and the consolidation of Cooper Lighting. Adjusted oblique prices as share of gross sales decreased by 120 bps to 31.0%, supported by continued spending self-discipline and constructive working leverage. Adjusted EBITA amounted to EUR 172 million, representing a EUR 60 million enhance versus the identical interval final yr. The Adjusted EBITA margin improved by 290 bps to 10.8%, with gross margin and SG&A effectivity equally contributing to the advance. Total restructuring prices of EUR 47 million primarily associated to the restructuring of the central group. Acquisition-related fees have been EUR 14 million and incidental gadgets generated a EUR Four million profit. As a results of the upper earnings from operations, internet earnings improved from EUR 27 million to EUR 60 million in comparison with the primary quarter of final yr.
1 This press launch accommodates sure non-IFRS monetary measures and ratios, akin to comparable gross sales progress, EBITA, adjusted EBITA and free money stream, and associated ratios, which aren’t acknowledged measures of economic efficiency or liquidity beneath IFRS. For a reconciliation of those non-IFRS monetary measures to probably the most straight comparable IFRS monetary measures, see appendix B, Reconciliation of non-IFRS monetary measures, of this press launch.
2 2020 consists of pro-forma Cooper Lighting for January and February.
Conference name and audio webcast
Eric Rondolat (CEO) and Javier van Engelen (CFO) will host a convention name for analysts and institutional buyers at 9:00 a.m. CET to debate the 2021 first quarter outcomes. A dwell audio webcast of the convention name can be accessible by way of the Investor Relations website.
Financial calendar 2021
May 18, 2021 – Annual General Meeting
May 20, 2021 – Ex-dividend date
May 21, 2021 – Dividend file date
June 1, 2021 – Dividend fee date
July 23, 2021 – Second quarter outcomes 2021
October 29, 2021 – Third quarter outcomes 2021
For additional info, please contact:
Signify Investor Relations
Tel: +31 6 1801 7131
Signify Corporate Communications
Elco van Groningen
Tel: +31 6 1086 5519
Signify (Euronext: LIGHT) is the world chief in lighting for professionals and customers and lighting for the Internet of Things. Our Philips merchandise, Interact related lighting programs and data-enabled companies, ship enterprise worth and remodel life in houses, buildings and public areas. With 2020 gross sales of EUR 6.5 billion, we’ve got roughly 37,000 staff and are current in over 70 international locations. We unlock the extraordinary potential of sunshine for brighter lives and a greater world. We achieved carbon neutrality in 2020, have been within the Dow Jones Sustainability World Index since our IPO for 4 consecutive years and have been named Industry Leader in 2017, 2018 and 2019. News from Signify is situated on the Newsroom, Twitter, LinkedIn and Instagram. Information for buyers may be discovered on the Investor Relations web page.
Forward-Looking Statements and Risks & Uncertainties
This doc and the associated oral presentation include, and responses to questions following the presentation might include, forward-looking statements that mirror the intentions, beliefs or present expectations and projections of Signify N.V. (the “Company”, and along with its subsidiaries, the “Group”), together with statements relating to technique, estimates of gross sales progress and future operational outcomes.
By their nature, these statements contain dangers and uncertainties dealing with the Company and its Group firms, and numerous essential components might trigger precise outcomes or outcomes to vary materially from these expressed in any forward-looking assertion on account of dangers and uncertainties. Such dangers, uncertainties and different essential components embody however are usually not restricted to: opposed financial and political developments, the impacts of COVID-19, speedy technological change, competitors within the common lighting market, growth of lighting programs and companies, profitable implementation of enterprise transformation applications, impression of acquisitions and different transactions, reputational and opposed results on enterprise resulting from actions in Environment, Health & Safety, compliance dangers, capacity to draw and retain gifted personnel, opposed foreign money results, pension liabilities, and publicity to worldwide tax legal guidelines. Please see “Risk Factors and Risk Management” in Chapter 12 of the Annual Report 2020 for dialogue of fabric dangers, uncertainties and different essential components which can have a cloth opposed impact on the enterprise, outcomes of operations, monetary situation and prospects of the Group. Such dangers, uncertainties and different essential components needs to be learn along side the data included within the Company’s Annual Report 2020.
Additional dangers presently not recognized to the Group or that the Group has not thought of materials as of the date of this doc might additionally show to be essential and will have a cloth opposed impact on the enterprise, outcomes of operations, monetary situation and prospects of the Group or might trigger the forward-looking occasions mentioned on this doc to not happen. The Group undertakes no responsibility to and won’t essentially replace any of the forward-looking statements in mild of recent info or future occasions, besides to the extent required by relevant regulation.
Market and Industry Information
All references to market share, market information, business statistics and business forecasts on this doc include estimates compiled by business professionals, rivals, organizations or analysts, of publicly accessible info or of the Group’s personal evaluation of its gross sales and markets. Rankings are primarily based on gross sales except in any other case acknowledged.
Non-IFRS Financial Measures
Certain components of this doc include non-IFRS monetary measures and ratios, akin to comparable gross sales progress, adjusted gross margin, EBITA, adjusted EBITA, and free money stream, and different associated ratios, which aren’t acknowledged measures of economic efficiency or liquidity beneath IFRS. The non-IFRS monetary measures offered are measures utilized by administration to observe the underlying efficiency of the Group’s enterprise and operations and, accordingly, they haven’t been audited or reviewed. Not all firms calculate non-IFRS monetary measures in the identical method or on a constant foundation and these measures and ratios is probably not similar to measures utilized by different firms beneath the identical or comparable names. A reconciliation of those non-IFRS monetary measures to probably the most straight comparable IFRS monetary measures is contained on this doc. For additional info on non-IFRS monetary measures, see “Chapter 18 Reconciliation of non-IFRS measures” within the Annual Report 2020.
Change in reporting segments
Effective Q2 2020, to additional adapt to the business transition and strengthen buyer centricity, Signify modified the organizational construction, which included altering the beforehand 4 enterprise teams (BG’s) to a few divisions. Division Digital Solutions (previously BG Professional, together with Cooper Lighting Solutions) provides luminaires, lighting programs and companies for the Internet of Things to the purchasers within the skilled section; Division Digital Products (combines BG LED and BG Home). This division provides LED lamps, LED luminaires and related merchandise, together with Hue and Wiz, and LED electronics to skilled clients, OEM companions and customers. By bringing collectively its total shopper LED portfolio, Signify can higher handle this lighting class for its channel companions; and Division Conventional Products (previously BG Lamps) continues to concentrate on standard lamps and electronics for skilled clients, OEM companions and customers. It is organized individually to deliver a transparent distinction between standard and digital choices.
In line with this modification, efficient Q2 2020, Signify’s working segments are Digital Solutions, Digital Products, and Conventional Products. The segments are organized primarily based on the character of the services and products. ‘Other’ represents quantities not allotted to the working segments and consists of sure prices associated to central R&D actions to drive innovation in addition to group enabling features.
All quantities are in tens of millions of euros except in any other case acknowledged. Due to rounding, quantities might not add as much as totals offered. All reported information are unaudited. Unless in any other case indicated, monetary info has been ready in accordance with the accounting insurance policies as acknowledged within the Annual Report 2020.
Market Abuse Regulation
This press launch accommodates info throughout the which means of Article 7(1) of the EU Market Abuse Regulation.