(Reuters) -Signify, 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)
Comments