Signify Reports Net Profit Fall in Q3

Signify, the Dutch lighting company, has reported a net profit fall in the third quarter due to lower sales amidst a challenging macroeconomic environment. Despite this, the company remains optimistic about its sales growth forecast, attributing it to effective cost control.

Financial Performance

In the quarter ended September 30, Signify recorded a net profit of 81 million euros ($85.6 million), compared to EUR107 million in the same period last year. Sales also declined from EUR1.91 billion to EUR1.65 billion, representing a 7.8% decrease on a comparable basis. Adjusted earnings before interest, taxes, and amortization (EBITA) amounted to EUR177 million, slightly lower than the previous year's figure of EUR199 million. However, the adjusted EBITA margin improved from 10.4% to 10.7%.

Future Outlook

Despite anticipated pressure from external macroeconomic factors affecting their topline, Signify maintains its expectations for adjusted EBITA margin guidance of 9.5% to 10.5%. The company also forecasts that free cash flow generation will be at the higher end of the 6% to 8% range. CEO Eric Rondolat stated, "We are well positioned by the cost reduction actions that began earlier this year."