The Adecco Group: Q4 & FULL YEAR 2024 RESULTS

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The Adecco Group

26 Feb, 2025, 05:45 GMT

Market share gains; strong cash generation; above target G&A savings driving resilient profitability

AD HOC ANNOUNCEMENT pursuant to Art. 53 Listing Rules of SIX Swiss Exchange

ZURICH, Feb. 26, 2025 /PRNewswire/ -- Q4 HIGHLIGHTS

Revenues -5%, and -3% organic. By GBU, Adecco -5%, Akkodis -6%, LHH -3%
Resilient 19.2% gross margin; pricing firm, volume and mix effects
Resilient 3.2% EBITA margin; negative operating leverage partly offset by strong G&A savings
Operating income €144 million; Net income €73 million
Basic EPS €0.43; Adjusted EPS €0.63
Strong operating cash flow +€491 million, +174 million yoy; free cash flow €446 million, +211 million yoy

FULL-YEAR HIGHLIGHTS

Revenues -3%, and -2% organic. Strong market share gain of +200 basis points
Resilient 19.4% gross margin; pricing firm, volume and mix effects
Resilient 3.1% EBITA margin; strong G&A savings, agile capacity management
Operating income €541 million; Net income €303 million
Basic EPS €1.81; Adjusted EPS €2.55
Strong cash generation: operating cash flow +€707 million; free cash flow +€563 million; 109% conversion ratio
Net debt €2.5 billion, ahead of management expectations
Above target FY24 G&A savings of €174 million delivered (net of inflation versus 2022 baseline)
Updated dividend policy leading to proposed DPS of CHF 1.00
End-24 net debt/EBITDA ratio 2.8x; targeting ≤ 1.5x net debt/EBITDA ratio by end-27

Denis Machuel, Adecco Group CEO, commented: "We are rigorously executing against our Future@Work Reloaded strategy. We have consistently gained market share in challenging markets, streamlined the business model and reduced G&A costs by over 20 percent, ahead of target, and delivered strong cash generation. We are accelerating the roll-out of AI-powered technologies and the expansion of our advanced digital delivery engine. Today, the Group is taking necessary action to accelerate deleveraging and increase financial flexibility with an updated dividend policy. We are increasingly confident that markets will improve, driving growth; and our continued rigorous execution will drive further market share gains, profitability and cash in future periods, supported by the excellent positioning of the Group's portfolio in talent and technology solutions."

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