By Christian Moess Laursen
Signify, the Dutch lighting company, has revised down its full-year earnings margin guidance following disappointing second-quarter results.
The company reported a quarterly net profit of 45 million euros ($57.6 million), a significant decrease from the 248 million euros achieved in the second quarter of 2022. This figure fell short of the market forecast of 58 million euros.
Signify attributed the steep decline to ongoing weaknesses in the consumer, indoor-professional, and original-equipment manufacturer channels, as well as a slower-than-anticipated recovery in the Chinese market.
Sales for the quarter also declined, dropping to 1.64 billion euros from 1.84 billion euros compared to the previous year. This missed the consensus forecast of 1.67 billion euros.
Adjusted earnings before interest, taxes, and amortization (EBITA), an important metric for the company, came in at 136 million euros, down from 174 million euros. The adjusted EBITA margin decreased from 9.5% to 8.3%.
The consensus taken from Signify's website had predicted adjusted EBITA to be around 150 million euros with a margin of 9.0%.
Due to these results, Signify has revised its full-year adjusted EBITA guidance. It now expects a margin between 9.5% and 10.5%, lower than the previous range of 10.5% to 11.5%.
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