With a growth of 22% since last year, LED now makes 68% of the total sales at Philips Lighting. Philips Lighting – that will have to change its name within a few months – today announced the company’s third-quarter results 2017. The company is headquartered at High Tech Campus Eindhoven.
“In line with our objectives, Philips Lighting returned to comparable sales growth in the quarter”, said CEO Eric Rondolat. “For the first time in our transformation, the growth of LED and connected lighting systems & services more than offset the decline of our conventional business. At the same time, we continued to improve our profitability, with LED and connected lighting systems & services being substantial contributors. This demonstrates the successful execution of our strategy as we remain on track to reach our outlook for 2017.”
Achieving positive comparable sales growth in the third quarter is an important step in the improvement of the growth profile of the company, Rondolat added. “We are on track to improve our Adjusted EBITA margin by 50-100 basis points for the full year, excluding a EUR 15 million real estate gain in the second quarter. In addition, we expect a strong free cash flow in the fourth quarter based on a substantial reduction in inventories.”
Third quarter 2017 highlights
Sales of EUR 1,684 million, with an increase in comparable sales of 1.3%
Total LED-based sales growth of 22%, now representing 68% of total sales (Q3 2016: 56%)
Adjusted EBITA of EUR 176 million (Q3 2016: EUR 175 million)
Adjusted EBITA margin improvement of 50 basis points to 10.5% (Q3 2016: 10.0%)
Net income of EUR 110 million (Q3 2016: EUR 51 million)
Free cash flow of EUR -5 million (Q3 2016: EUR 164 million)
