Signify reports first quarter sales of EUR 1.4 billion, operational profitability of 8.0% and a free cash flow of EUR 40 million

Core Insights - Signify reported first quarter 2025 sales of EUR 1.4 billion, with an operational profitability of 8.0% and free cash flow of EUR 40 million [1][9]. Financial Performance - Sales for Q1 2025 were EUR 1,448 million, reflecting a nominal sales decline of 1.3% and a comparable sales growth (CSG) of -2.8% [9]. - The adjusted EBITA margin was 8.0%, slightly down from 8.3% in Q1 2024 [9]. - Net income increased to EUR 67 million compared to EUR 44 million in Q1 2024 [9]. - Free cash flow decreased to EUR 40 million from EUR 80 million in Q1 2024 [9]. Business Segments - The Consumer business experienced growth across all regions, enhancing both top and bottom-line performance [3]. - The Professional business maintained a resilient profit margin, with improvements in other markets offsetting challenges in Europe [3]. - In China, there was a faster-than-expected return to growth in both professional and consumer segments [3]. Strategic Focus - The company is focused on mitigating the short-term impact of tariffs in Q2 while implementing structural measures for the second half of the year [4][12]. - Signify confirmed its guidance for the year based on market visibility and ongoing measures [4][12]. Sustainability Initiatives - Signify's connected and specialty lighting offerings now account for over one-third of its business, continuing to gain market share despite market volatility [5]. - The company is on track to reduce emissions across its value chain by 40% by 2025, exceeding the pace required by the Paris Agreement [6]. - Circular revenues increased to 36%, surpassing the 2025 target of 32%, driven by serviceable luminaires in the professional business [7]. - Brighter lives revenues remained at 33%, also ahead of the 2025 target of 32%, supported by consumer and professional products [8]. Recognition and Outlook - Signify was recognized in the Global 100 Most Sustainable Corporations, ranking 15th overall [9][11]. - The company expects sales momentum to build throughout the year, targeting low single-digit comparable sales growth excluding Conventional [13]. - A stable adjusted EBITA margin is anticipated, with the Professional, Consumer, and OEM segments compensating for the Conventional business drag [13].