Further market share gains and disciplined cost management; G&A savings above-target
ZURICH, Aug. 6, 2024 --
- Revenues -2% yoy in challenging markets; Group relative revenue growth +375 bps and Adecco GBU +220 bps
- Revenues by GBU, Adecco -2% yoy, Akkodis -2% yoy, LHH -7% yoy
- Robust 19.4% gross margin, -70 bps yoy, reflecting current business mix; pricing firm
- SG&A expenses excl. one-offs improved by 50 bps yoy as a percentage of revenues, at €969 million
- G&A expenses -19% vs Q2 22
- €162 million G&A savings run-rate delivered mid-24 vs 2022 baseline, above ~€150 million target
- Robust 3.1% EBITA margin excl. one-offs, stable yoy, reflecting disciplined cost management including above-target G&A savings, as well as favourable timing of FESCO JV income
- Operating income €113 million, stable yoy, constant currency; Net income €58 million, -2% yoy, constant currency
- Basic EPS €0.35, -2% yoy, constant currency; Adjusted EPS €0.64, -1% yoy, constant currency
- Improved cash performance reflecting good working capital management: operating cash flow +€82 million yoy to €162 million, free cash flow +€100 million yoy to €128 million, cash conversion 84%
Denis Machuel, Adecco Group CEO, commented:
"The Group gained a further +375 bps market share in the second quarter, on top of the +775 bps gain in the prior year period. Revenues eased on an organic basis reflecting continued market challenges, although pricing remained firm. We delivered above-target G&A cost savings, supporting a robust EBITA margin, and importantly, delivered improved cash flow through good working capital management.
Adecco outperformed its peers in a tough market, while Akkodis achieved healthy growth in Consulting & Solutions. Pontoon and EZRA grew strongly in LHH, while the performance of Career Transition remained strong.
Our determination is to continue outperforming the sector and to gain further market share. Our strong positioning, rigorous cost management and proven capacity to execute will enable us to benefit swiftly when labour markets improve."
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