Signify: lights out on disappointing results

(CercleFinance.com) - Signify shares fell sharply on Wednesday after it reported Q1 results that fell short of market forecasts, which were already considered very conservative.


Adjusted Ebita for Q1 fell to E149m from E187 million a year earlier, while analysts were expecting E161m.

Its Ebita margin fell to 8.9% from 10.5% a year ago.

Reported sales fell by 6.1% to E1.7bn, although were down 9.1% LFL.

The lighting specialist confirmed its annual targets, still expecting a FY adjusted Ebitda margin of 10.5% to 11.5%.

However, achieving this target remains largely dependent on a significant increase in sales volumes in H2, a scenario that seems very hypothetical in view of the current recession fears, one analyst commented.

Signify, a former Philips subsidiary, sells LED lamps and lighting systems for homes, offices, shops and cities.

Following this publication, Signify shares fell by 9.4% in Amsterdam on Wednesday.


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