Jan 26 (Reuters) - Signify, the world's biggest maker of lights, beat fourth-quarter margin expectations on Friday, aided by share gains in professional lighting systems.
Adjusted earnings before interest, taxes and amortisation (EBITA) reached 209 million euros ($227 million) in the last three months of 2023, corresponding to a margin of 12.1%.
Analysts had forecast an adjusted EBITA margin of 11.7% in a company-provided poll.
"While we continued to face adverse market conditions in some geographies and in the consumer and OEM segments, we have gained share with our professional connected systems," said CEO Eric Rondolat in a press release.
Signify provides consumers and corporate clients with a range of lighting solutions, from conventional home lamps to LED lighting or lighting systems for professionals.
The company, spun off from Dutch technology group Philips in 2016, in December unveiled a cost-cutting plan to save 200 million euros annually, which it said would include an unspecified number of job cuts.
"We will continue to protect our gross margin and enhance our focus on costs," Rondolat said.
Signify expects to improve its adjusted EBITA margin by up to 50 basis points in 2024.
However, its net income fell to 59 million euros in the fourth quarter, well below the 104 million euros expected by analysts, weighed down by higher restructuring costs.
($1 = 0.9225 euros)
Reporting by Stéphanie Hamel and Olivier Cherfan; editing by Milla Nissi
Source: Reuters