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January 12 (Reuters) – Signify (LIGHT.AS), the world’s largest lighting maker, said on Thursday that its full-year profit margin and earnings fell due to a sharper-than-expected slowdown in China and lower demand for commercial indoor lighting. It lowered its sales guidance again.
Signify’s share price fell 3.9% to 31.84 euros before the start of trading in Amsterdam.
The Dutch group, which had already lowered its forecasts in July and October, expects an adjusted EBITA margin of around 10% for both the fourth quarter and the full year of 2022.
This compares with previous guidance for the full year at the lower end of the range of 11.0-11.4%.
“Signify experienced a significantly worse than expected business performance in China due to continued COVID-related disruptions, a significant slowdown in OEM channel growth, and a downturn in its indoor professional business,” the company said in a statement.
Comparable sales growth in 2022 is now seen at 1.2%, against previous guidance of a 2-3% increase.
“We now expect full-year 2022 free cash flow to be approximately €445 million ($479 million), or 5.9% of sales,” said Signify.
Signify was created in 2016 by a spin-off of Philips’ lighting business.
Reported by Benoit Van Overstraeten. Edited by Sudip Kar-Gupta and Jane Merriman
Our standards: Thomson Reuters Trust Principles.
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