Signify’s Q3 2024: 6.8% Decline. Focused on Resilience, Strategic Shifts, and Sustainability Milestones
In the 3Q of 2024, Signify reports a sales decline of 6.8%. Despite facing declines in its Conventional lighting business and slow demand in China, the company reported €1.537 billion in sales, a 10.5% adjusted EBITA margin, and €119 million in free cash flow. CEO Eric Rondolat highlighted Signify’s ability to adapt, citing steady sales growth, effective cost-cutting, and a strong commitment to sustainable innovation.
Adapting to Changing Markets
Signify continues to phase out its Conventional lighting segment while investing more in connected and specialty lighting, which now make up about 30% of its revenue. In the Professional segment, the company saw growth in connected lighting and a rebound in agricultural lighting solutions. Meanwhile, the Consumer segment (excluding China) posted a 2.6% increase in sales, reflecting a recovery across other regions. The OEM business also experienced positive momentum, stabilizing customer inventory levels, marking two-quarters of growth.
Through its cost-reduction efforts, Signify has maintained profitability despite a shrinking contribution from Conventional lighting. Looking ahead, the company has set an adjusted EBITA margin target of 10-10.5% and a free cash flow goal of 6-7% of sales for 2024, aiming for continued stability.
Driving Sustainability Forward
Signify’s “Brighter Lives, Better World 2025” program is pushing its sustainability goals forward:
- Reducing Emissions: Since 2019, Signify has cut value chain emissions by 40%, surpassing the targets set by the Paris Agreement. This achievement is mainly due to its energy-efficient LED solutions.
- Increasing Circular Revenues: Circular revenues rose to 36.7%, above the 2025 target of 32%. This increase was led by serviceable luminaires in the Americas, designed for easier repair and reuse.
- Supporting Health and Well-being: Revenue from Brighter Lives products, which promote well-being, has reached 31.1%. This puts the company on track to meet its 2025 target of 32%, largely supported by EyeComfort lighting products.
- Enhancing Diversity in Leadership: The percentage of women in leadership roles remained at 29.3%, below the 2025 goal of 34%. To improve this, Signify focuses on targeted hiring, succession planning, and retention initiatives.
Looking to the Future
As Signify reduces its focus on Conventional lighting, it concentrates on connected and specialty lighting in its Professional, Consumer, and OEM divisions. These areas align with a broader industry shift toward sustainable, connected solutions, offering significant growth potential.
Rondolat emphasized that Signify’s commitment to sustainability and innovation uniquely positions it for leadership as the lighting industry evolves. By centering sustainability, Signify aims to drive long-term value for its stakeholders while advancing its environmental and social goals.
Moving into Q4, Signify is focused on meeting its financial targets and continuing its sustainability journey, dedicated to its vision of creating a brighter, better world through innovative lighting solutions.
Read the press release here