In this Research Note, we examine the lighting business of Signify, based on their 2021 annual results, investor presentations and lighting technology-related activities throughout 2021. Signify, headquartered in Eindhoven, the Netherlands, is the global market leader in energy-efficient lighting systems and services. The business, employing 38,000 people in 74 countries, reported 2021 sales of EUR 6,860 million and operational profitability of 11.6% on 28th January 2022. Full year sales increased by 5.5% while comparable sales grew by 3.8% in 2021. Despite the significant cost increases of raw materials, components, and logistics, the business expanded their operational profit margin for the eighth consecutive year, with an improvement of 90 basis points. This was driven by the strong performance of their two digital business units, which combined now account for more than 80% of their sales, profit and cash flow. These improved results follow two challenging years in 2019 and 2020 with declining sales on a comparable basis, due to weak market conditions caused […]