The Adecco Group: BALANCED GROWTH AND MARGIN TREND IMPROVING IN Q2 2018
August 09, 2018 at 01:05 am EDT
Share
BALANCED GROWTH AND MARGIN TREND IMPROVING IN Q2 2018
Continued investments in strategic initiatives to strengthen competitive position
Summary and highlights
Revenue growth 4% organically1 and trading days adjusted (TDA)
Return to growth in North America General Staffing, +3% TDA
Continued strong performance in permanent placement, revenues up 18% organically
Gross margin 18.3%, stable year-on-year; trend in temporary staffing price and mix similar to Q1 2018 (-10 bps)
EBITA2 margin excluding one-offs3 4.5%, down 30 bps, including strategic investments impact of -30 bps
Net income attributable to Adecco Group shareholders EUR 170 million
Revenues in June and July combined up 4%, organically and trading days adjusted
Sale of Beeline stake announced in July; EUR 172 million after-tax cash proceeds
"In Q2 2018, underlying revenue growth was solid, at 4%, and the mix of growth became more balanced. North America General Staffing returned to growth, achieving its strongest performance since Q2 2015, mostly offsetting lower growth in certain European countries. And in France, our largest business, we significantly outperformed the market. Permanent recruitment also remained strong, reflecting the targeted investments that we have made.
Gross margin stabilised in Q2. We maintained our price discipline and were increasingly able to reflect in our bill rates the additional efforts required to find candidates in talent scarce markets. EBITA margin was impacted by investments in our 'Perform, Transform, Innovate' agenda, and also by the ongoing consolidation of our general staffing businesses in Germany. In the second half of 2018, we expect the Group margin trend to improve, and we are on track to deliver the EUR 50 million of productivity savings previously indicated.
The investments we are making to digitalise the Adecco Group will significantly strengthen our competitive position, allowing us to grow our market share in our core businesses, and also expand our solutions into attractive adjacent markets. As the Group's transformation builds momentum, I am thankful to all of our colleagues around the world for their dedication and enthusiasm, and for embracing the many opportunities that the changing world of work offers."
Alain Dehaze, Group Chief Executive Officer
Press Release (PDF)
Provider
Channel
Contact
Tensid EQS Ltd., Switzerland
www.tensid.ch
newsbox.ch
www.newsbox.ch
Provider/Channel related enquiries
marco@tensid.ch
+41 41 763 00 50
Adecco Group AG, formerly Adecco S.A., provides human resource (HR) services. The Company's services include temporary staffing, permanent placement, outsourcing, career transition. It operates through two business lines: Staffing and Solutions. The Staffing business line includes General Staffing, which includes Office and Industrial, and Professional Staffing, which includes Information Technology, Engineering and Technical, Finance and Legal, and Medical and Science. The Solutions business line includes Business Process Outsourcing, which includes Managed Service Programs, Recruitment Process Outsourcing and Vendor Management System, and Career Transition and Talent Development, which includes outplacement, career development, change management solutions, training and consulting. Its segments include France, North America, UK & Ireland, Germany & Austria, Japan, Italy, Benelux, Nordics, Iberia, Australia & New Zealand, Switzerland, Emerging Markets and Lee Hecht Harrison.
ADECCO GROUP AG 
