Signify Reports Full-Year Sales of EUR 6.7 Billion, Operational Profitability of 10.0% and a Free Cash Flow of 8.7% of Sales

January 26, 2024

Signify reports full-year sales of EUR 6.7 billion, operational profitability of 10.0% and a free cash flow of 8.7% of sales

Full year 20231

  • Signify’s installed base of connected light points increased from 114 million at YE 22 to 124 million at YE 23
  • On track for three Brighter Lives, Better World 2025 sustainability program commitments
  • Sales of EUR 6,704 million; nominal sales decline of -10.8% and CSG of -8.3%
  • LED-based sales represented 85% of total sales (FY 22: 83%)
  • Adj. EBITA margin of 10.0% (FY 22: 10.1%)
  • Net income of EUR 215 million (FY 22: EUR 532 million incl. one-time effects of EUR 184 million)
  • Free cash flow of EUR 586 million (FY 22: EUR 445 million), representing 8.7% of sales

Fourth quarter 2023

  • Sales of EUR 1,734 million; nominal sales decline of -12.3% and CSG of -7.7%
  • Adj. EBITA margin of 12.1% (Q4 22: 10.2%)
  • Net income of EUR 59 million (Q4 22: EUR 86 million)
  • Free cash flow of EUR 295 million (Q4 22: EUR 364 million)


  • Proposal to increase its cash dividend to EUR 1.55 per share over 2023 (FY 22: EUR 1.50)

Eindhoven, the Netherlands – Signify (Euronext: LIGHT), the world leader in lighting, today announced the company’s fourth quarter and full-year 2023 results.

“In Q4, our gross margin was again strong, confirming our improving operational performance. This brought our adjusted EBITA margin into double digits for the full year. While we continued to face adverse market conditions in some geographies and in the consumer and OEM segments, we have gained share with our professional connected systems. We over-delivered against our free cash flow guidance, with close to EUR 600m in cash, representing 8.7% of sales. We are also proud to have surpassed the circular revenues sustainability target two years ahead of schedule. I would like to thank our employees and partners for their continued hard work and dedication to help us achieve these results,” said Eric Rondolat, CEO of Signify.

“While we anticipate challenging conditions will persist through the year ahead, I am confident in our strategy and in our proven ability to adapt. In the past quarter, we introduced a new operating model and measures that will enhance our performance and deliver annualized savings in excess of EUR 200 million. We will continue to protect our gross margin and enhance our focus on costs. We have developed strategic advantages that will help us to gain share and improve profitability while generating a strong free cash flow in 2024.”

Brighter Lives, Better World 2025
Signify completed the third year of its Brighter Lives, Better World 2025 sustainability program, making continued progress towards doubling its positive impact on the environment and society by the end of 2025. Signify is on track to deliver on three of its sustainability program commitments:

Double the pace of the Paris agreement
Signify is on track to reduce emissions across the entire value chain by 40% against the 2019 baseline – double the pace required by the Paris Agreement. This is driven by Signify’s leadership in energy efficient and connected LED lighting solutions, which significantly reduce emissions during the use phase.

Double Circular revenues
Circular revenues increased to 33%, up 1% over the third quarter, surpassing the 2025 target of 32%. The main contribution was from serviceable luminaires, with a strong performance from both consumer and professional.

Double Brighter lives revenues
Brighter lives revenues remained at 31%, on track to reach the 2025 target of 32%. This includes a strong contribution from professional luminaires that support the well-being of wildlife.

Double the percentage of women in leadership
The percentage of women in leadership positions remained at 29%, slightly off track versus the 2023 target. Signify continues its actions to increase representation through focused hiring practices for diversity across all levels, and through retention and engagement actions to reduce attrition.

In the fourth quarter, Signify received several external recognitions for its leadership in Sustainability. Signify was included in the DJSI World Index for the 7th consecutive year, was included in the DJSI Europe Index for the 6th time, and achieved the EcoVadis Platinum rating for the 4th consecutive year.

For 2024, Signify expects:

  • An Adjusted EBITA margin improvement of up to 50 bps, including first benefits from the announced restructuring program
  • Free cash flow generation of 6-7% of sales, including an incremental and non-recurring negative impact of around EUR 150 million related to the restructuring program and a reduction of US pension liabilities

Capital allocation
Signify proposes a cash dividend of EUR 1.55 per share for 2023, in line with its policy to pay an increasing annual cash dividend per share year on year. The dividend proposal is subject to approval at the Annual General Meeting of Shareholders (AGM) to be held on May 14, 2024. Further details will be provided in the agenda for the AGM.

In line with its aim to maintain a robust capital structure and an investment grade credit rating, Signify expects to further deleverage its gross debt and reduce its US pension liabilities in 2024.

Signify will continue to invest in organic and inorganic growth opportunities in line with its strategic priorities.

Conference call and audio webcast
Eric Rondolat (CEO) and Javier van Engelen (CFO) will host a conference call for analysts and institutional investors at 9:00 a.m. CET to discuss the fourth quarter and full year 2023 results. A live audio webcast of the conference call will be available via the Investor Relations Website

The analyst presentation is available via this link

1This press release contains certain non-IFRS financial measures and ratios, such as comparable sales growth, EBITA, adjusted EBITA and free cash flow, and related ratios, which are not recognized measures of financial performance or liquidity under IFRS. For a reconciliation of these non-IFRS financial measures to the most directly comparable IFRS financial measures, see appendix B, Reconciliation of non-IFRS financial measures, of this press release.