Signify reports full-year sales of EUR 7.5 billion, operational profitability of 10.1% and a free cash flow of EUR 445 million

·14-min read

Press Release

January 27, 2023

Signify reports full-year sales of EUR 7.5 billion, operational profitability of 10.1% and a free cash flow of EUR 445 million

Full year 20221

  • Signify's installed base of connected light points increased from 96 million at YE 21 to 114 million at YE 22

  • Sales of EUR 7,514 million; nominal sales increase of 9.5% and CSG of 1.2%

  • LED-based sales represented 83% of total sales (FY 21: 83%)

  • Adj. EBITA margin of 10.1% (FY 21: 11.6%)

  • Net income of EUR 532 million (FY 21: EUR 407 million)

  • Free cash flow of EUR 445 million (FY 21: EUR 614 million)

  • Net debt/EBITDA ratio of 1.3x (YE 21: 1.4x)

Fourth quarter 2022

  • Sales of EUR 1,978 million; nominal sales decline of 1.5% and CSG of -8.8%

  • Adj. EBITA margin of 10.2% (Q4 21: 13.2%)

  • Net income of EUR 86 million (Q4 21: EUR 170 million)

  • Free cash flow of EUR 364 million (Q4 21: EUR 257 million)


  • Proposal to increase its cash dividend to EUR 1.50 per share over 2022 (FY 21: EUR 1.45)

Eindhoven, the Netherlands – Signify (Euronext: LIGHT), the world leader in lighting, today announced the company’s fourth quarter and full-year 2022 results.

“2022 was a year of exceptionally challenging conditions. The external environment grew increasingly more volatile throughout the year, leading us to adapt the company and our objectives accordingly. While margins and cash were impacted by inflation and supply chain disruption respectively, our connected lighting business and growth platforms grew to reach almost EUR 2 billion of sales. The relevance of our products and solutions was further heightened in 2022, as energy efficiency became even more urgent. This strengthened our competitive position as we executed on our strategic priorities. We brought new innovative and sustainable lighting solutions to our customers and continued to make progress towards doubling our impact on environment and society,” said Eric Rondolat, CEO of Signify.

“Looking ahead, we expect volatility to persist in the first half of 2023 and our performance to improve in the second half. While top-line growth will be difficult to predict, our key priority in 2023 will be to improve profitability and return to a free cash flow level in line with previous years. We will intensify our focus on managing the decline and profitability of our Conventional Products business, while further driving the transition to energy efficient, connected and sustainable lighting solutions. As we move forward, we remain committed to our strategy to invest and drive innovation in the lighting industry and so create a more sustainable and connected future for all.”

Brighter Lives, Better World 2025

In the fourth quarter, Signify completed the second year of its Brighter Lives, Better World 2025 sustainability program, making continued progress towards doubling its positive impact on the environment and society:

  • Double the pace of the Paris agreement:
    The cumulative carbon reduction over the value chain is on track to reach the 2025 target. This is mainly driven by energy-efficient and connected LED lighting, which reduce emissions in the use phase.

  • Double Circular revenues to 32%:
    Circular revenues were 29% and are on track, mainly driven by serviceable and circular luminaires.

  • Double Brighter lives revenues to 32%:
    Brighter lives revenues of 27%, on track to reach the 2025 target. The consumer well-being and safety & security portfolios continue to be the main contributors to Brighter lives revenues.

  • Double the percentage of women in leadership to 34%:
    The percentage of women in leadership positions was 28%. An improvement versus the end of last year, yet slightly off track to reach the 2025 target. This quarter, Signify focused on improving inclusive hiring practices and internal talent development. These actions help Signify realize its diversity ambitions.

In the fourth quarter, Signify received several external recognitions for its leadership in Sustainability and Climate action. Signify was included on the CDP’s Climate A List, and was included in the DJSI World Index for the 6th consecutive year.


Signify continues to aim for growth, both organic and through selected acquisitions. Given the volatility of the current macro environment, Signify does not provide a comparable sales growth guidance for 2023. The company will focus its efforts on improving its Adjusted EBITA margin and free cash flow. Signify expects for 2023:

  • An Adjusted EBITA margin in the range of 10.5-11.5%

  • Free cash flow between 6-8% of sales

Capital allocation

Signify proposes a cash dividend of EUR 1.50 per share for 2022, in line with its policy to pay an increasing annual cash dividend per share year on year. The dividend proposal will be subject to approval at the Annual General Meeting of Shareholders (AGM) to be held on May 16, 2023. Further details will be provided in the agenda for the AGM.

In 2022, Signify reduced its net debt/EBITDA ratio to 1.3x. Excluding the acquisitions of Fluence and Pierlite, Signify reached its goal of reducing its net debt/EBITDA ratio to 1.0x at the end of 2022, down from 2.7x after the acquisition of Cooper Lighting in March 2020. Signify remains committed to maintaining a robust capital structure and an investment grade credit rating.

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

Financial review

Fourth quarter


Twelve months




in millions of EUR, except percentages






-8.8        %

Comparable sales growth



1.2        %



4.7        %

Effects of currency movements



6.0        %



2.6        %

Consolidation and other changes



2.4        %



-1.5        %




9.5        %



-7.6        %

Adjusted gross margin



3.8        %

39.5        %

37.1        %


Adj. gross margin (as % of sales)

39.4        %

37.3        %












Adj. SG&A expenses







Adj. R&D expenses






-0.2        %

Adj. indirect costs



-6.9        %

27.8        %

28.3        %


Adj. indirect costs (as % of sales)

29.6        %

28.9        %











-24.0        %

Adjusted EBITA



-4.2        %

13.2        %

10.2        %


Adjusted EBITA margin

11.6        %

10.1        %





Adjusted items






-29.9        %




32.8        %










-33.4        %

Income from operations (EBIT)



39.8        %




Net financial income/expense







Income tax expense






-49.5        %

Net income



31.0        %











Free cash flow







Basic EPS (€)







Employees (FTE)




Full year
Nominal sales increased by 9.5% to EUR 7,514 million, including a positive currency effect of 6.0%, largely driven by the appreciation of the USD, and a positive impact of 2.4% from the consolidation of Fluence and Pierlite. Comparable sales growth was 1.2%, benefiting from traction in the professional segment, partly offset by China, which was impacted by COVID-related measures, and softness in the consumer segment.

The Adjusted gross margin declined by 210 bps to 37.3%, mainly due to an adverse currency impact as price increases largely compensated input and energy cost inflation throughout the year. Adjusted indirect costs as a percentage of sales decreased by 70 bps to 28.9%, mainly driven by indirect cost savings.

Adjusted EBITA declined by 4.2% to EUR 762 million. Digital Solutions and Digital Products further increased their combined share of Signify's Adjusted EBITA excluding 'Other' to 86% (2021: 82%). The Adjusted EBITA margin declined by 150 bps to 10.1%, mainly driven by the lower gross margin.

Total restructuring costs were EUR 64 million, acquisition-related charges were EUR 27 million and other incidental items were a net benefit of EUR 173 million. The other incidental items were mainly related to the gain on the disposal of non-strategic real estate assets. Net income increased by 31.0% to EUR 532 million, mainly driven by the gain on the disposal of non-strategic real estate assets, partly offset by a higher income tax expense, due to higher taxable income, and higher net financial expenses.

Fourth quarter
Nominal sales declined by 1.5% to EUR 1,978 million, with a comparable sales decline of 8.8%. The decline is mainly attributable to a further deterioration of the Chinese market due to COVID-related disruptions, a weaker indoor professional business, continued softness in the consumer segment and lower growth in the OEM channel than anticipated. Nominal sales included a positive currency effect of 4.7%, mainly from the appreciation of the USD versus Q4 21, and a positive impact of 2.6% from the consolidation of Fluence and Pierlite.

The Adjusted gross margin decreased by 240 bps to 37.1%, mainly driven by an adverse currency impact. Price increases continued to offset higher input costs and the surge in energy costs. On a sequential basis, the gross margin has stabilized since Q2 22. Adjusted indirect costs as a percentage of sales increased by 50 bps to 28.3%, as indirect cost savings did not fully compensate lower sales volumes.

Adjusted EBITA decreased to EUR 202 million. The Adjusted EBITA margin decreased to 10.2%, mainly due to a negative currency impact of 150 bps and fixed cost under-absorption due to lower sales volumes. The negative currency impact was the combination of both the year-on-year weakening of the EUR versus the USD and CNY, and a continued, yet temporary, FX hedging headwind.

Total restructuring costs were EUR 47 million, acquisition-related charges were EUR 4 million and various incidental items were a net benefit of EUR 15 million. Net income decreased to EUR 86 million, as a result of lower income from operations and higher financial expenses. The higher financial expenses were mainly impacted by the Virtual Power Purchase Agreements, higher interest costs and the recognition of a monetary loss due to hyperinflation in Turkey.

The number of employees (FTE) decreased from 36,824 at the end of Q4 21 to 34,619 at the end of Q4 22. The year-on-year decrease is mostly related to factory personnel. The number of FTEs is affected by fluctuations in volume and seasonality.

1 This 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.

For the full and original version of the press release click here
For the presentation click here

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 2022 results. A live audio webcast of the conference call will be available via the Investor Relations website.

Financial calendar
February 28, 2023         Annual Report 2022
May 3, 2023                 First quarter results 2023
May 16, 2023               Annual General Meeting
May 18, 2023               Ex-dividend date
May 19, 2023               Dividend record date
June 5, 2023                Dividend payment date
July 28, 2023                Second quarter and half-year results 2023
October 27, 2023          Third quarter results 2023

For further information, please contact:
Signify Investor Relations
Thelke Gerdes
Tel: +31 6 1801 7131

Signify Corporate Communications
Leanne Carmody
Tel: +31 6 3928 0201


Abigail Levene
Tel: +31 6 2939 3895

About Signify
Signify (Euronext: LIGHT) is the world leader in lighting for professionals and consumers and lighting for the Internet of Things. Our Philips products, Interact connected lighting systems and data-enabled services, deliver business value and transform life in homes, buildings and public spaces. In 2022, we had sales of EUR 7.5 billion, approximately 35,000 employees and a presence in over 70 countries. We unlock the extraordinary potential of light for brighter lives and a better world. We achieved carbon neutrality in 2020, have been in the Dow Jones Sustainability World Index since our IPO for six consecutive years and were named Industry Leader in 2017, 2018 and 2019. News from Signify is located at the Newsroom, Twitter, LinkedIn and Instagram. Information for investors can be found on the Investor Relations page.

Important information

Forward-Looking Statements and Risks & Uncertainties
This document and the related oral presentation contain, and responses to questions following the presentation may contain, forward-looking statements that reflect the intentions, beliefs or current expectations and projections of Signify N.V. (the “Company”, and together with its subsidiaries, the “Group”), including statements regarding strategy, estimates of sales growth and future operational results.

By their nature, these statements involve risks and uncertainties facing the Company and its Group companies, and a number of important factors could cause actual results or outcomes to differ materially from those expressed in any forward-looking statement as a result of risks and uncertainties. Such risks, uncertainties and other important factors include but are not limited to: adverse economic and political developments, in particular the impacts of the Russia-Ukraine conflict, the energy crisis in Europe, the impacts of COVID-19, supply chain constraints, component shortages, cost inflation, rapid technological change, competition in the general lighting market, development of lighting systems and services, successful implementation of business transformation programs, impact of acquisitions and other transactions, reputational and adverse effects on business due to activities in Environment, Health & Safety, compliance risks, ability to attract and retain talented personnel, adverse currency effects, pension liabilities, and exposure to international tax laws.

Additional risks currently not known to the Group or that the Group has not considered material as of the date of this document could also prove to be important and may have a material adverse effect on the business, results of operations, financial condition and prospects of the Group or could cause the forward-looking events discussed in this document not to occur. The Group undertakes no duty to and will not necessarily update any of the forward-looking statements in light of new information or future events, except to the extent required by applicable law.

Market and Industry Information
All references to market share, market data, industry statistics and industry forecasts in this document consist of estimates compiled by industry professionals, competitors, organizations or analysts, of publicly available information or of the Group’s own assessment of its sales and markets. Rankings are based on sales unless otherwise stated.

Non-IFRS Financial Measures
Certain parts of this document contain non-IFRS financial measures and ratios, such as comparable sales growth, adjusted gross margin, EBITA, adjusted EBITA, and free cash flow, and other related ratios, which are not recognized measures of financial performance or liquidity under IFRS. The non-IFRS financial measures presented are measures used by management to monitor the underlying performance of the Group’s business and operations and, accordingly, they have not been audited nor reviewed. Not all companies calculate non-IFRS financial measures in the same manner or on a consistent basis and these measures and ratios may not be comparable to measures used by other companies under the same or similar names. A reconciliation of these non-IFRS financial measures to the most directly comparable IFRS financial measures is contained in this document. For further information on non-IFRS financial measures, see “Chapter 18 Reconciliation of non-IFRS measures” in the Annual Report 2021.

All amounts are in millions of euros unless otherwise stated. Due to rounding, amounts may not add up to totals provided. All reported data are unaudited. Unless otherwise indicated, financial information has been prepared in accordance with the accounting policies as stated in the Annual Report 2021 and the Semi-Annual Report 2022.

Market Abuse Regulation
This press release contains information within the meaning of Article 7(1) of the EU Market Abuse Regulation.