Yahoo Finance

• Nominal Sales: EUR1,448 million, a decrease of 1.3% with a positive currency effect of 1.4%.

• Comparable Sales: Declined by 2.8% overall; 0.9% decline excluding conventional business.

• Adjusted EBITA Margin: Decreased by 30 basis points to 8%.

• Net Income: EUR67 million, up from EUR44 million in Q1 last year.

• Free Cash Flow: EUR40 million.

• Professional Business Sales: EUR942 million, with a comparable sales decline of 1.8%.

• Consumer Business Sales: EUR311 million, with sales growth of 3.1%.

• OEM Business Sales: EUR92 million, with a comparable sales decline of 10.7%.

• Conventional Business Sales: EUR92 million, with a comparable sales decline of 23.9%.

• Adjusted EBITA Margin for Consumer Business: Improved by 40 basis points to 10.8%.

• Adjusted EBITA Margin for OEM Business: Decreased to 4.2%.

• Adjusted EBITA Margin for Conventional Business: 18.4%.

• Working Capital: Reduced by EUR31 million, from 7.3% to 7.2% of sales.

• Warning! GuruFocus has detected 2 Warning Signs with PHPPY.

Release Date: April 25, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Signify NV (PHPPY) reported a sequential improvement in most of its businesses, with a strong contribution from connected offers, increasing the install base of connected light points from EUR126 million in Q1 '24 to EUR153 million.

• The company saw a faster-than-expected return to growth in both professional and consumer segments in China, bringing optimism for the rest of the year.

• Net income improved to EUR67 million compared to EUR44 million in Q1 last year, driven by lower restructuring costs and financial expenses.

• The Consumer business achieved sales growth of 3.1% with a positive contribution from all regions, and the adjusted EBITA margin improved by 40 basis points to 10.8%.

• Signify NV (PHPPY) was ranked 15th globally in the Corporate Knights rankings for the global 100 most sustainable corporations, highlighting its leadership in sustainability.

Negative Points

• Nominal sales decreased by 1.3% to EUR1,448 million, with comparable sales declining by 2.8% due to weakness in the professional Europe and OEM business.

• The adjusted EBITA margin decreased by 30 basis points to 8%, mainly due to adverse absorption of fixed costs and weakness in the high-margin professional business in Europe.

• The OEM business saw a significant decline in comparable sales by 10.7%, attributed to two major customers, with expectations that this effect will persist.

• The Conventional business experienced a decline in comparable sales by 23.9%, reflecting the structural decline of that business.

• The percentage of women in leadership positions decreased by 1% to 27%, which is not in line with the company's 2025 ambitions.