Philips Lighting fourth quarter and full year results 2016
(Thomson Reuters ONE) -
Press release January 23, 2017
Philips Lighting reports full year operating profit margin increase of 180 basis
points to 9.1% and free cash flow of EUR 418 million
Full year 2016 highlights
* Sales of EUR 7,115 million, with comparable sales of -2.4% (2015: -3.5%)
* Continued year-on-year improvement in operational profitability
* Adjusted EBITA of EUR 645 million (2015: EUR 547 million)
* Adjusted EBITA margin improvement of 180 basis points to 9.1% (2015:
7.3%)
* Net income of EUR 185 million (2015: EUR 240 million), including EUR 143
million charges not applicable in 2015 for brand license, separation costs
and financial expenses
* Free cash flow of EUR 418 million (2015: EUR 632 million) or 5.9% of sales
Fourth quarter 2016 highlights
* Sales amounted to EUR 1,934 million, with comparable sales of -3.2% (Q4
2015: -2.7%)
* Total LED-based sales growth of 16%, now representing 59% of total sales
* Continued year-on-year improvement in operational profitability
* Adjusted EBITA of EUR 188 million (Q4 2015: EUR 159 million)
* Adjusted EBITA margin improvement of 190 basis points to 9.7% (Q4
2015: 7.8%)
* Net income of EUR 63 million, including EUR 41 million charges not
applicable in 2015 for brand license, separation costs and financial
expenses
* Free cash flow of EUR 272 million
Shareholder return
* Proposed cash dividend of EUR 1,10 per share, a pay-out ratio of 52%
* Additional capital up to EUR 300 million to be returned to shareholders over
the period 2017-2018 by participating in share disposals by our main
shareholder.
Eindhoven, the Netherlands - Philips Lighting (Euronext Amsterdam: LIGHT) today
announced the company's fourth quarter and full year results 2016. "In 2016, our
businesses performed in accordance with their strategic objectives, despite
challenging conditions in some markets. We are pleased with the significant
increase in profitability and solid free cash flow in our first year as a
standalone company. These results mark a continued progression to achieve our
strategic goals and medium term financial objectives," said CEO Eric Rondolat.
"Our team remains focused on the opportunities ahead and is committed to meeting
the needs of our customers through innovation, while executing concrete actions
to continue improving our growth profile."
Key figures
Fourth quarter Twelve months
2015 2016 Change in ? million, unless otherwise 2015 2016 change
indicated
-------------------------------------------------------------------------------
2,045 1,934 -5.4% Sales 7,465 7,115 -4.7%
-3.2% Comparable sales growth -2.4%
753 744 -1.2% Adjusted gross margin 2,731 2,763 1.2%
159 188 18.2% Adjusted EBITA 547 645 17.9%
105 136 29.5% EBITA 438 479 9.4%
79 109 38.0% Income from operations (EBIT) 331 369 11.5%
42 63 50.0% Net income 240 185 -22.9%
% of sales
36.8% 38.5% Adjusted gross margin 36.6% 38.8%
7.8% 9.7% Adjusted EBITA margin 7.3% 9.1%
478 272 Free cash flow 632 418
0.43 Basic EPS (?) 1.26
37,399 34,256 Employees (FTE) 37,399 34,256
-------------------------------------------------------------------------------
Outlook
In 2017, we expect further improvement in our Adjusted EBITA margin by
approximately 50-100 basis points, in line with our medium term outlook to
gradually improve the Adjusted EBITA margin to 11-13%. We also remain committed
to delivering solid free cash flow. While we are cautious given global economic
uncertainty, we remain committed to our ambition to return to positive
comparable sales growth in the course of this year.
2016 dividend proposal and capital return to shareholders
We propose a dividend of EUR 1.10 per share in cash, which represents a pay-out
ratio of 52% of continuing net income. The dividend payment is subject to
approval by the Annual General Meeting of Shareholders (AGM) to be held on 9 May
2017. Further details will be given in the agenda for the AGM.
Given our capital position whilst maintaining a compatible investment-grade
profile, and in line with our capital allocation policy, we will return
additional capital to our shareholders. Over the period 2017-2018, we will
return up to EUR 300 million, by participating in share disposals by our main
shareholder.
For the full and original version of the press release click here
For the presentation click here
Conference call and audio webcast
Eric Rondolat (CEO) and Stéphane Rougeot (CFO) will host a conference call for
investors and analysts at 9:00 a.m. CET to discuss full year and fourth quarter
results.
For the audio webcast click here
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Financial Calendar 2017
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21 April 2017 First quarter results 2017
-----------------------------------------------------------
9 May 2017 Annual General Meeting of Shareholders
-----------------------------------------------------------
21 July 2017 Half year results 2017
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19 October 2017 Third quarter results 2017
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For further information, please contact:
Philips Lighting Investor Relations
Jeroen Leenaers
Tel: +31 6 2542 5909
E-mail: jeroen.leenaers(at)philips.com
Philips Lighting Communications
Elco van Groningen
Tel: +31 6 1086 5519
E-mail: elco.van.groningen(at)philips.com
About Philips Lighting
Philips Lighting (Euronext Amsterdam ticker: LIGHT), a global leader in lighting
products, systems and services, delivers innovations that unlock business value,
providing rich user experiences that help improve lives. Serving professional
and consumer markets, we lead the industry in leveraging the Internet of Things
to transform homes, buildings and urban spaces. With 2016 sales of EUR 7.1
billion, we have approximately 34,000 employees in over 70 countries. News from
Philips Lighting is located at http://www.newsroom.lighting.philips.com
Important Information
Forward-Looking Statements and Risks & Uncertainties
This document and the related oral presentation contain, and responses to
questions following the presentation may contain, forward-looking statements
that reflect the intentions, beliefs or current expectations and projections of
Philips Lighting N.V. (the "Company", and together with its subsidiaries, the
"Group"), including statements regarding strategy, estimates of sales growth and
future operational results.
By their nature, these statements involve risks and uncertainties facing the
Company and its Group Companies and a number of important factors could cause
actual results or outcomes to differ materially from those expressed in any
forward-looking statement as a result of risks and uncertainties. Such risks,
uncertainties and other important factors include but are not limited to:
adverse economic and political developments, the impacts of rapid technological
change, competition in the general lighting market, development of lighting
systems and services, successful implementation of business transformation
programs, impact of acquisitions and other transactions, impact of the Group's
operation as a separate publicly listed company, pension liabilities and costs,
establishment of corporate and brand identity, adverse tax consequences from the
separation from Royal Philips and exposure to international tax laws. Please see
"Risk Factors" in the Group's prospectus, dated 16 May 2016 (the "Prospectus")
for discussion of material risks, uncertainties and other important factors
which may have a material adverse effect on the business, results of operations,
financial condition and prospects of the Group. Such risks, uncertainties and
other important factors should be read in conjunction with the information
included in the Company's semi-annual report for the first six months ended 30
June 2016.
Additional risks currently not known to the Group or that the Group has not
considered material as of the date of this document could also prove to be
important and may have a material adverse effect on the business, results of
operations, financial condition and prospects of the Group or could cause the
forward-looking events discussed in this document not to occur. The Group
undertakes no duty to and will not necessarily update any of the forward-looking
statements in light of new information or future events, except to the extent
required by applicable law.
Market and Industry Information
All references to market share, market data, industry statistics and industry
forecasts in this document consist of estimates compiled by industry
professionals, competitors, organizations or analysts, of publicly available
information or of the Group's own assessment of its sales and markets. Rankings
are based on sales unless otherwise stated.
Non-IFRS Financial Measures
Certain parts of this document contain non-IFRS financial measures and ratios,
such as comparable sales growth, adjusted gross margin, EBITA, adjusted EBITA,
EBITDA, adjusted EBITDA and free cash flow, and other related ratios, which are
not recognized measures of financial performance or liquidity under IFRS. The
non-IFRS financial measures presented are measures used by management to monitor
the underlying performance of the Group's business and operations and,
accordingly, they have not been audited or reviewed. Not all companies calculate
non-IFRS financial measures in the same manner or on a consistent basis and
these measures and ratios may not be comparable to measures used by other
companies under the same or similar names. A reconciliation of these non-IFRS
financial measures to the most directly comparable IFRS financial measures is
contained in this document. For further information on non-IFRS financial
measures, see "Operating and Financial Review-Non-IFRS Financial Measures" in
the Prospectus.
Presentation
All amounts are in millions of euros unless otherwise stated. All reported data
is unaudited. Unless otherwise indicated, financial information has been
prepared in accordance with the accounting policies as stated in the Combined
Financial Statements for the year ended 31 December 2015 included in the
Prospectus.
Market Abuse Regulation
This press release contains information within the meaning of Article 7(1) of
the EU Market Abuse Regulation.
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Philips Lighting via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 23.01.2017 - 07:02 Uhr
Sprache: Deutsch
News-ID 519090
Anzahl Zeichen: 12986
contact information:
Town:
Eindhoven
Kategorie:
Business News
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