Philips Lighting reports sales at EUR 1.7 billion, continued profitability increase led by gross margin improvement; solid cash flow

Third quarter 2016 highlights

• Comparable sales of -3.3% to €1.75 billion (US $1.91 billion)
• Total LED-based sales growth of 16%, now representing 56% of total sales
•  Continued year-on-year improvement in operational profitability

   - adjusted EBITA of €175 million (Q3 2015: €139 million
   - adjusted EBITA margin of 10.0% (Q3 2015: 7.5%) 

• Net income of €51 million, including €30 million charges for brand license, separation costs and financial expenses not applicable in 2015 
• Free cash flow of €164 million (Q3 2015: €80 million) particularly driven by improved profitability and working capital management

Eric Rondolat, CEO:

“Our operational profitability and free cash flow improved significantly in the third quarter, in line with our improvement path, despite softer sales. We will continue to implement sales improvement measures and introduce innovative propositions to strengthen our underlying growth profile. Our total LED-based sales grew by 16% in the quarter and now represent 56% of our revenues. Moreover our systems and services businesses saw healthy double-digit growth, driven by our continued extension of lighting into the Internet of Things.”

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), Stéphane Rougeot (CFO) and René van Schooten (member of the Board of Management and Business Group Leader of Lamps) will host a conference call for analysts at 10:00 a.m. CEST to discuss third quarter results.

For the audio webcast click here