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."

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