Signify – Signify restates financials for 2023 and Q1 2024

Signify publishes comparable financials for 2023 and Q1 2024 following implementation of new organizational structure¹

Eindhoven, the Netherlands – Signify (Euronext: LIGHT), the world leader in lighting, has published its quarterly comparable financials for the year 2023 and Q1 2024. Following the implementation of Signify’s new organizational structure on April 1, the company has established four verticalized businesses with full profit and loss responsibility2. Each of these four businesses will be fully responsible for its end-to-end processes including offer development, manufacturing, and sales & marketing.

The Professional business offers LED lamps, luminaires, connected lighting systems and services to customers in the professional segment. The Professional business is the combination of the former Digital Solutions division and Professional LED lamps and luminaires, which was formerly part of the Digital Products division.

Reflecting this shift and the reallocation of central costs to the businesses, the Professional business recorded sales of EUR 4,254 million with an Adjusted EBITA of EUR 412 million and an Adjusted EBITA margin of 9.7% for the year 2023. In Q1 2024, the Adjusted EBITA margin decreased from 7.9% to 7.4% year on year.

The Consumer business offers LED lamps, luminaires, and connected products, including Philips Hue and WiZ, to customers in the consumer segment. The Consumer business was formerly part of the Digital Products division alongside Professional LED lamps and luminaires and the OEM business.

Reflecting this shift and the reallocation of central costs to the businesses, the Consumer business recorded sales of EUR 1,342 million with an Adjusted EBITA of EUR 120 million and an Adjusted EBITA margin of 8.9% for the year 2023. In Q1 2024, the Adjusted EBITA margin improved from 6.0% to 10.4% year on year.

The OEM business offers lighting components to the industry. The OEM business was previously part of the Digital Products division and is now set up as a standalone business.

Reflecting this shift and the reallocation of central costs to the businesses, the OEM business recorded sales of EUR 457 million with an Adjusted EBITA of EUR 43 million and an Adjusted EBITA margin of 9.4% for the year 2023. In Q1 2024, the Adjusted EBITA margin decreased from 9.6% to 8.8% year on year.

The Conventional business offers special lighting, digital projection, and lamp electronics. The Conventional business is similar to the former Conventional Products division.

Following the reallocation of central costs to the businesses, the Conventional business recorded sales of EUR 627 million with an Adjusted EBITA of EUR 127 million and an Adjusted EBITA margin of 20.3% for the year 2023. In Q1 2024, the Adjusted EBITA margin decreased from 22.3% to 17.6% year on year.

‘Other’ represents amounts not allocated to the businesses and now mainly includes costs related to ventures, exploratory research and audits. Following the implementation of the new structure, part of the central costs has been reallocated to the four vertically integrated businesses. As a result of the reallocation, ‘Other’ Adjusted EBITA for 2023 reduced from EUR -86 million to EUR -31 million.

¹This document contains certain non-IFRS financial measures and ratios, such as comparable sales growth, EBITA, adjusted EBITA, and related ratios, which are not recognized measures of financial performance or liquidity under IFRS. All reported data are unaudited.

²Please refer to appendix A for a visual representation of how the organizational structure has changed.