/C O R R E C T I O N -- The Adecco Group/

May 07, 2024 08:17 PM AEST | By Cision

/C O R R E C T I O N -- The Adecco Group/ — Image source: Kalkine Media

The Adecco Group: Q1 24 Results

Further strong market share gains, disciplined execution

ZURICH, May 7, 2024 /PRNewswire/ --

Revenues flat yoy, outperforming markets; Adecco's relative revenue growth +600 bps
By GBU, Adecco, +1% yoy, of which APAC +14%, Southern Europe & EEMENA +8%, DACH +7%; LHH -5%, with Career Transition & Mobility +9%; Akkodis -2%, with Consulting +5%
Healthy 19.8% gross margin, +20 bps qoq, -100 bps yoy, mainly reflecting current business mix; pricing firm
SG&A expenses, excl. one-offs, €978 million, reflecting strong G&A savings, focus on productivity
Resilient 2.8% EBITA margin excl. one-offs, -30 bps yoy, or -10 bps yoy when excluding the impact from the timing of FESCO JV income, with gross margin developments substantially mitigated by rigorous cost discipline
Operating income €122 million, -12% yoy, constant currency; Net income €73 million, -20% yoy
Basic EPS €0.44, -20% yoy; Adjusted EPS €0.59, -18% yoy
Improved cash performance: free cash flow +€72 million yoy, cash conversion 73%
On track to deliver ~€150 million G&A savings, net, in run-rate terms, mid-2024

Denis Machuel, Adecco Group CEO, commented:

"The Group demonstrated strong operational progress in the first quarter. We achieved revenue stability and maintained firm pricing discipline amidst challenging market conditions while driving further cost improvement across the business. Adecco delivered significant market share gains with a healthy gross margin. Akkodis faced ongoing tech staffing headwinds while achieving solid growth in its higher-value consulting business, which lifted overall profitability. In LHH, Career Transition and Ezra once again outperformed, and the business delivered an improved margin. We remain laser-focused on the elements within our control – competitive outperformance and market share expansion, together with cost discipline. The G&A savings programme is on track, and at the same time, the Group is preserving resources, where appropriate, to ensure it can swiftly capitalise on the future market rebound."

Full Press Release
Webcast Details | Investors & Analysts

Investor Relations:
+41 (0)44 878 88 88

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (“Kalkine Media, we or us”), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary.
The content published on Kalkine Media also includes feeds sourced from third-party providers. Kalkine does not assert any ownership rights over the content provided by these third-party sources. The inclusion of such feeds on the Website is for informational purposes only. Kalkine does not guarantee the accuracy, completeness, or reliability of the content obtained from third-party feeds. Furthermore, Kalkine Media shall not be held liable for any errors, omissions, or inaccuracies in the content obtained from third-party feeds, nor for any damages or losses arising from the use of such content.
Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyrighted to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have made reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.

This disclaimer is subject to change without notice. Users are advised to review this disclaimer periodically for any updates or modifications.