Eindhoven, the Netherlands – Signify (Euronext: LIGHT), the world leader in lighting, provides an update on its Q4 2022 results and performance for the full year 2022, based on preliminary and unaudited figures.
During the fourth quarter, Signify experienced a stronger than anticipated deterioration of its business in China due to ongoing COVID-related disruptions, a much lower growth in the OEM channel and a weaker indoor professional business than expected. Signify now expects a comparable sales decline of 8.8% for the quarter, resulting in a comparable sales growth of 1.2% for the full year 2022, compared to the previous range of 2-3% for the year.
While the gross margin stabilized, fixed costs did not keep pace with lower sales volumes. Signify therefore expects an Adjusted EBITA margin of approximately 10% for both the fourth quarter and the full year 2022. This compares with the previous full-year guidance of the lower end of the 11.0-11.4% range.
During the final quarter, Signify significantly reduced its inventory, leading to a better than expected working capital performance. The company now expects to report a full year 2022 free cash flow of approximately EUR 445 million or 5.9% of sales, compared to the previous guidance of the lower end of the 5-7% range.
Signify will publish its fourth quarter and full-year results 2022 on January 27, 2023.