Robust performance in challenging markets; volumes stabilising

ZURICH, Nov. 5, 2024 --

  • Revenues -5% yoy organic TDA, -3% yoy organic, a solid result given market conditions, high comparison base; volumes stabilising
  • By GBU, Adecco -5%, with good results across Asia, Iberia, EEMENA, LatAm outweighed by challenging markets, particularly in France, US; Akkodis -5%, with Consulting +2%; LHH -7%, with Recruitment Solutions stable qoq
  • Resilient 19.4% gross margin, sequentially flat, reflecting lower volumes, current business mix, firm pricing
  • SG&A expenses improved to €925 million, -5% yoy, with G&A -10% yoy and at 3.2% of revenues
  • Robust 3.3% EBITA margin, reflecting strong G&A savings, selective protection of sales and delivery capacity
  • Operating income €162 million; Net income €99 million; Basic EPS €0.59; Adjusted EPS €0.68
  • Operating cash flow +€121 million, weighed by timing differences; Free cash flow +€117 million YTD, higher yoy
  • Continued delivery of Simplify-Execute-Grow agenda:
    • G&A savings run-rate end-24 lifted to €171 million
    • Reprioritised IT/digital plan: accelerating AI adoption, expanding Global Delivery to improve fill rates, time-to-fill
    • Strong track record of market share gains; relative revenue growth, reported, +850 bps since introduction of Simplify-Execute-Grow (Q3 22), and +290 bps YTD 
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Denis Machuel, Adecco Group CEO, commented:

"We continue to successfully deliver on our Simplify, Execute, Grow plan and third quarter performance was robust, against a high comparison base. The macroeconomic environment remains challenging, but I am encouraged to see that volume trends have stabilised.

We made further G&A savings in the quarter, allowing us to lift the year-end run-rate. We have reprioritised our IT/digital plans to accelerate AI adoption, and to expand Global Delivery to our top 25 customers. This will boost recruiter productivity and improve fill rates and time-to-fill, supporting profitable growth. We remain focused on capturing market share, building on strong progress over the last two years, and have positioned resources to capture growth opportunities as the market recovers."

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