Signify sets 10% margin target, 40-50% dividend payout through 2029
Signify laid out medium-term objectives at its Capital Markets Day targeting approximately 10% adjusted EBITA margin, 7-8% free cash flow of sales, and a 40-50% dividend payout ratio by 2029.
Signify introduced medium-term financial objectives and an updated capital allocation policy at its Capital Markets Day on June 23, targeting delivery by 2029 [1]. The lighting manufacturer set comparable sales growth of 0-1%, adjusted EBITA margin of approximately 10%, and free cash flow generation of 7-8% of sales [1].
The company updated its dividend policy to pay an annual cash dividend with a payout ratio of 40-50% of continuing net income [1]. Signify framed the targets as part of a strategy to create "a more focused, better-performing company" [1].
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