Turnover amounted to just under 1.5 billion euros, which, corrected for fluctuating exchange rates and the sale of business units, was a decline of 10 percent.
The revenues of Signify’s branch that sells conventional lamps fell by almost 36 percent. This was because the European Union last year banned the sale of fluorescent tubes and other fluorescent lamps because they contain dangerous substances. Turnover also fell in the business lighting market, which is important to Signify, due to reluctant customers in Europe.
Net profit did increase, mainly because Signify spent much less on interest. At 44 million euros, the net result was more than half higher.
Job losses
Signify announced a major reorganization at the beginning of this year, resulting in the loss of a thousand jobs. Almost half of those jobs will disappear in the Netherlands. In combination with previous interventions by Signify, the lighting group’s workforce shrank by around 3,000 employees in one year to a total of approximately 31,000 people.
CEO Eric Rondolat previously said that cuts were inevitable due to declining sales, making the costs per product sold too high. He now states that the first effects of the savings plan are visible. For the whole of 2024, Signify expects an improvement in profit margin and better sales figures, especially in North and South America.
Tags: European market hindering sale lighting company Signify
