SFFYF - Signify N.V. (PHPPY) Q4 2023 Earnings Call Transcript
2024-01-26 09:41:02 ET
Signify N.V. (PHPPY)
Q4 2023 Earnings Conference Call
January 26, 2024 03:00 ET
Company Participants
Thelke Gerdes - Head, Investor Relations
Eric Rondolat - Chief Executive Officer
Javier van Engelen - Chief Financial Officer
Conference Call Participants
Akash Gupta - JPMorgan
Martin Wilkie - Citibank
Tim Ehlers - Kepler Cheuvreux
Jacqueline Li - Bank of America
Marc Hesselink - ING
Wim Gille - ABN AMRO
Presentation
Thelke Gerdes
Good morning, everyone and welcome to Signify’s Earnings Call for the Fourth Quarter and Full Year 2023. During this call, we will start with Javier’s review of the company’s financial performance in the fourth quarter. And after that, Eric will discuss the full year 2023 performance, outlook and provide an update on our recently announced restructuring program. After that, we will be happy to take your questions.
Our press release and presentation were published at 7:00 this morning. Both documents are available for download from our Investor Relations website. The transcript of this conference call will be made available as soon as possible.
And with that, I will hand over to Javier.
Javier van Engelen
Thank you, Thelke. Good morning, everyone and thank you for joining us today. Let me start by diving straight into our quarter 4 results, starting on Page 4. We increased the installed base of connected light points from 121 million in Q3 to 124 million at the end of Q4. LED-based sales represented 87% of total sales. Nominal sales in Q4 were €1.7 billion, translating into a nominal decline of 12.3% and a comparable sales decline of 7.7%. The Q4 sales performance was impacted by continued weakness in the consumer, OEM and indoor professional lighting businesses.
Adjusted EBITA margin came in at 12.1%, an increase of 190 basis points versus 10.2% in Q4 last year. The main driver behind this improvement continues to be gross margin expansion, thanks to effective cost of goods sales management and a positive sales mix. Net income came in at €59 million compared to €86 million in Q4 last year. The year-on-year decrease is mainly due to the increase in restructuring provisions, which was partially compensated by lower financial expenses and lower income tax....
Signify N.V. (PHPPY) Q4 2023 Earnings Call Transcript