Signify: share jumps with better margins
(CercleFinance.com) - Although Signify reported a decline in its quarterly results on Friday, the Dutch lighting specialist's improving profit margins proved more meaningful for investors.
In particular due to a downturn in business in China - including in LED technology - its Q3 sales fell by 13.8% to E1.65bn.
LFL sales fell by less: -7.8%.
Signify announced net profit that fell to E83m in Q3, compared with E112m the year before.
However, its adjusted EBITA margin improved to 10.7%, from 10.4% last year, as did its gross margin, which rose from 37.3% to 39.3% year-on-year, with management congratulating itself on improving its gross margin, a priority for FY 2023.
It also confirmed its annual forecasts, still expecting an adjusted EBITA margin of 9.5% to 10.5% for the full year.
The market welcomed this publication, with Signify shares up over 8% at lunchtime on Friday in Amsterdam.
Copyright (c) 2023 CercleFinance.com. All rights reserved.
In particular due to a downturn in business in China - including in LED technology - its Q3 sales fell by 13.8% to E1.65bn.
LFL sales fell by less: -7.8%.
Signify announced net profit that fell to E83m in Q3, compared with E112m the year before.
However, its adjusted EBITA margin improved to 10.7%, from 10.4% last year, as did its gross margin, which rose from 37.3% to 39.3% year-on-year, with management congratulating itself on improving its gross margin, a priority for FY 2023.
It also confirmed its annual forecasts, still expecting an adjusted EBITA margin of 9.5% to 10.5% for the full year.
The market welcomed this publication, with Signify shares up over 8% at lunchtime on Friday in Amsterdam.
Copyright (c) 2023 CercleFinance.com. All rights reserved.