Philips has decided to concentrate its efforts on LED light bulbs, especially in light of the recent sales figures that highlight a growing demand for energy-efficient lighting solutions.
Philips has recently revealed impressive growth figures, announcing that their sales of LED-based products surged by an astonishing 43% during the second quarter of the fiscal year. This remarkable increase highlights the growing popularity of LED technology among consumers. Currently, LED light bulbs account for 36% of Philips’ total lighting sales, a significant rise from just 25% back in 2013. This shift not only reflects changing consumer preferences but also underscores the company’s commitment to innovation in lighting solutions. Additionally, the EBITA margin for Philips’ new lighting division has seen a positive improvement, now standing at 8.6%, showcasing their financial strength in this sector.
Even with a notable increase in sales, Philips is actively seeking new strategies to enhance profitability within its lighting division, while also speeding up the transition to LED light bulbs. The company has been concentrating on refining its industrial footprint, which involves streamlining operations and reducing costs. This focused approach has led to an impressive achievement: eight consecutive quarters of year-on-year improvements in operational profitability. By prioritising efficiency and innovation, Philips is not only aiming to boost its bottom line but also to solidify its position as a leader in the lighting industry, particularly in the growing market for energy-efficient LED solutions.
CEO of Philips, Frans Van Houten, said:
In lighting we are intensifying our focus on connected LED lighting systems and services, LED luminaires and LED lamps for the professional and consumer markets. Our decision to combine Lumileds and Automotive lighting businesses into a standalone company within Philips will allow it to extend its leading portfolio of digital lighting components and achieve robust growth, serving even more customers in the industry, as well as Philips Lighting. Lighting is taking advantage of the many opportunities in the growing LED space, driven by increased demand for energy efficiency and digital controls. While 2014 is expected to be a challenging year overall, we anticipate EBITA for the group , excluding restructuring and acquisition-related charges and other items in the second half of the year, to exceed the level of the same period last year. We continue to increase efficiency and drive profitable growth through the execution of our multi-year. Accelerate transformation and are firmly committed to reaching our 2016 targets.