Key Takeaways
- Sustainability Achievements: Signify (Profile) surpassed its sustainability goals, achieving a 334 million tons CO2e reduction since 2019, aligning with the Paris Agreement’s 1.5°C pathway. The company operates on 100% renewable electricity and has made significant product transparency and circularity strides.
- Innovation and R&D Investments: Signify is at the forefront of innovation, holding a leading position in intellectual property within the lighting industry. The company invested 4.2% of its sales in R&D, focusing on energy-efficient lighting solutions and expanding its 3D printing business.
- Customer Satisfaction and Digital Transformation: Focusing on customer satisfaction, Signify improved its order and delivery processes, integrating AI into customer service and product design. The company also enhanced its digital platforms, boosting B2B online revenue.
- Inclusivity and Leadership Development: Signify is committed to building an inclusive culture with focused leadership training and initiatives to promote diversity, equity, and inclusion. The company is restructuring to promote faster decision-making and greater autonomy.
- Strategic Outlook and Leadership Transition: Amidst a challenging global landscape, Signify remains committed to its strategic goals and sustainability initiatives. The company is also undergoing leadership transitions, with key management roles being evaluated for the future.
Reinforcing Sustainable Growth
In 2023, Signify continued to underscore the urgency of climate action through its Brighter Lives, Better World sustainability program. The program’s comprehensive approach to climate action, circularity, and societal impact has led to significant achievements, including a landmark carbon reduction and a transition to 100% renewable electricity. Signify’s efforts in sustainability were recognized with top ratings from S&P and EcoVadis and inclusion in the Dow Jones Sustainability World Index for the seventh consecutive year.
Innovation Beyond Illumination
Signify’s dedication to innovation is evident in its expanding intellectual property portfolio and significant investments in research and development. The company’s advancements in energy-efficient lighting and 3D printing technologies underscore its commitment to leading the industry in sustainable and innovative solutions. The recognition from the US Department of Energy’s L-Prize competition and multiple design awards highlights Signify’s excellence in innovation.
Prioritizing Customer Satisfaction and Embracing Digitalization
Addressing supply chain challenges, Signify has made customer satisfaction a key performance indicator, implementing improvements that led to a significant increase in satisfaction scores. The company’s digital transformation initiatives have enhanced customer experiences and operational efficiency, leveraging AI for customer care and product design.
Building an Inclusive Performance Culture
Signify’s focus on inclusivity and leadership development is central to its corporate ethos. With initiatives aimed at enhancing diversity, equity, and inclusion, and developing internal talent, Signify is creating a workplace environment that fosters growth and innovation.
Towards a Brighter Future
As Signify navigates through leadership transitions and a changing global landscape, the company remains steadfast in its commitment to sustainability and innovation. The strategic review process and adherence to the Brighter Lives, Better World 2025 goals reflect Signify’s ambition to lead in the lighting industry and contribute to a sustainable future.
Signify’s achievements in 2023, from sustainability milestones to innovation in lighting technology, underscore its role as a leader in the global lighting industry. As the company looks to the future, its commitment to sustainability, customer satisfaction, and innovation remains unwavering, promising a brighter, more sustainable world.
Signify Latest News
Q4 2023 Highlights Mixed Performance (2024/01/26)
In 2023, Signify reported a mixed financial performance with its connected light points reaching 124 million, indicating progress in its Brighter Lives, Better World 2025 commitments despite a 10.8% nominal sales decline and an 8.3% drop in Comparable Sales Growth. LED-based sales increased to 85% of total sales, maintaining an adjusted EBITA margin of 10.0% and a net income decrease to EUR 215 million, while generating strong free cash flow of EUR 586 million, amidst specific segment challenges including a nominal sales decrease in the fourth quarter, impacted by negative currency effects and softness in indoor professional and horticulture lighting, yet showing an improvement in the Adjusted EBITA margin due to gross margin recovery.
Q3 2023 Performance in Horticulture & Indoor Ag Segment (2023/10/27)
Signify’s Digital Solutions segment reported a CSG of -4.3% in Q3 2023, with strength in professional systems and services but softness in indoor professional and horticulture lighting areas. The adjusted EBITA margin for the segment increased to 11.7%, driven by gross margin expansion. The company faces market risks such as geopolitical tensions and component shortages, which could impact the horticulture and indoor farming segment. Signify confirmed its overall guidance for 2023, expecting an adjusted EBITA margin of 9.5-10.5% and free cash flow generation at the higher end of the 6-8% range.
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