PHILPS Lighting 1Q18 Revenue Was About 11 Billion 500 Million, Down From The Same Period Last Year.
- Apr 29, 2018 -

In April 26th, global lighting leader PHILPS lighting announced its first quarter results in 2018. PHILPS lighting revenue in the first quarter was 1 billion 500 million euros (about 11 billion 544 million yuan), and its business profitability was 7%. Among them, lamps and lanterns revenue 370 million euros; LED revenue 444 million euros; professional lighting revenue 593 million euros; home lighting 92 million euros.


The highlights of the first quarter of 2018:


Sales amounted to 1 billion 501 million euros (about 11 billion 544 million yuan), down 3.5% from the same period last year.


Sales of LED products increased by 5.6% over the same period last year, accounting for 68% of total sales (61% in the first quarter of 2017).


The adjusted EBITA (profit before depreciation and amortization) was 106 million euros (about 815 million yuan) (127 million euros in the first quarter of 2017).


The adjusted EBITA profit margin decreased by 50 basis points, 7%, lighting, LED and professional lighting growth;


The cost reduction plan is being steadily implemented, and the indirect cost has been reduced by 13%.


Net income was 20 million euros (61 million euros in the first quarter of 2017), reflecting a rising restructuring cost, a decline in profitability and a one-time real estate revenue in the first quarter of 2017.


Free cash flow is -600 euro (the first quarter of 2017: excluding real estate income, -1700 million euros).


Eric Rondolat, the chief executive of PHILPS lighting, said, "as mentioned earlier, the first quarter marks a soft start this year, mainly because of poor performance in home lighting, especially in the United States. The profitability of our other three businesses was further improved, especially for professional lighting, and its adjusted EBITA profit rate increased by 310 basis points, "I was satisfied with the progress made in the cost, reduced the base of the indirect cost by 13%, and our free cash flow showed after a strong increase in the fourth quarter. Satisfied。 Our focus is still on implementing the strategic transformation to LED, systems and services. "


Business outlook


PHILPS lighting plans to increase the adjusted EBITA profit margin from 9.6% to 10.0-10.5%, and will continue to focus on cost reduction plans and hope to profit from more savings by the second half of 2018. On the basis of strong momentum in the second half of the year, considerable sales growth will be achieved throughout the year. It is expected that considerable free cash flows will be generated in 2018, but the rate of restructuring will be higher than expected in 2017.