Adecco Group Reports Strong Operational Progress in First Quarter 2024

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  Financial Highlights:

• Revenue Stability: Adecco Group reports flat year-over-year revenues, outperforming market expectations. Relative revenue growth increased by 600 basis points compared to competitors, with Adecco’s gross margin standing at a healthy 19.8%.
• Regional Performance: Adecco’s performance by geographical business unit (GBU) saw positive growth in various regions, including APAC (+14%), Southern Europe & EEMENA (+8%), and DACH (+7%).
• Segment Performance: Adecco’s segments performed variably, with Adecco experiencing a 1% year-over-year growth, while LHH saw a decline of 5%. However, Career Transition & Mobility within LHH recorded a growth of 9%, and Consulting within Akkodis increased by 5%.
• Financial Margins: Despite a slight decrease in EBITA margin by 30 basis points year-over-year, Adecco maintained firm pricing discipline, resulting in improved gross margin and resilient profitability.
• Operational Income and Cash Flow: Adecco reported a 12% year-over-year decrease in operating income and a 20% decrease in net income. However, the company demonstrated improved cash performance, with free cash flow increasing by €72 million year-over-year and a cash conversion rate of 73%.

CEO Commentary: Denis Machuel, CEO of Adecco Group, highlighted the strong operational progress achieved in the first quarter. He emphasized the company’s ability to maintain revenue stability, firm pricing discipline, and achieve significant market share gains amidst challenging market conditions. Machuel also acknowledged the success of segments like Career Transition & Mobility and Consulting, which contributed to overall profitability. He reaffirmed the company’s focus on competitive outperformance, market share expansion, and cost discipline, while also ensuring resources are preserved to capitalize on future market rebounds.

Adecco Group’s first-quarter results reflect resilience and strong operational performance despite market challenges. The company’s focus on revenue stability, cost discipline, and strategic investments in higher-value segments position it well for future growth and market share expansion.