Signify announces CEO departure, posts 2024 core profit below expectations (updated)

Signify

24/01/2025 06:31

(Adds metric, buyback, outlook, details throughout)
       Jan 24 (Reuters) - Signify  LIGHT.AS , the world's
biggest maker of lights, on Friday reported a bigger than
expected drop in its full-year core profit and said CEO Eric
Rondolat would step down after the annual general meeting in
April.
    The Dutch group said the board would consider both internal
and external candidates as it seeks a successor for him. 
    Signify's adjusted earnings before interest, taxes and
amortisation (EBITA) fell 9.6% to 606 million euros ($633
million) in 2024, below analysts' average forecast of 611
million euros seen in a company-provided consensus.
    It reported an adjusted EBITA margin of 9.9%, slightly lower
than its forecast for the low end of a 10% to 10.5% range.
    The company said its gross margin was strong as price
pressure in some markets was compensated by cost-saving measures
that included laying off 1,000 people by the end of last year.
    Signify said it would increase its cash dividend to 1.56
euros per share for 2024, from 1.55 euros paid for the prior
year.
    It also unveiled a share repurchase programme of up to 150
million euros starting from the first quarter, and said it
planned to buy back between 350 million and 450 million euros
worth of shares by the end of 2027.
    The company expects its revenue to grow in a single-digit
percentage in 2025, with a stable EBITA margin compared to last
year's.
($1 = 0.9568 euros)

 (Reporting by Leo Marchandon and Hugo Lhomedet in Gdansk;
Editing by Milla Nissi)
 ((Leo.Marchandon@thomsonreuters.com;
hugo.lhomedet@thomsonreuters.com))