Continued investments in IT and digital to strengthen the business
Summary and highlights
Revenues down 2% year-on-year, and down 4% organically1 and trading days adjusted (TDA), reflecting ongoing challenging market conditions in Europe and the US
Continued strong improvement in gross margin, up 70 bps yoy to 19.4%, driven by focus on value-based pricing and enhanced business mix
EBITA2 margin excluding one-offs3 4.9%, down 10 bps yoy; structural productivity improvements were offset by slowing revenue growth and strategic IT investments
GrowTogether transformation programme on track to deliver 2019 and 2020 commitments
Strong balance sheet with Net Debt/EBITDA4 excluding one-offs 1.1x; cash conversion5 84% and improved DSO
Revenues in September and October combined down 4% organically and TDA, in-line with Q3
"In Q3 2019, we delivered a solid performance in an uncertain external environment. We remain focused on our business transformation and continue to invest in our strategic priorities - GrowTogether, IT and our digital ventures - which are fundamentally strengthening our business.
Our ongoing emphasis on value-based pricing and business mix improvement is driving a sustained increase in gross margin, which was up 60 basis points organically year-on-year.
We also delivered strong performances in the Career Transition and Talent Development activities, with a return to growth in Lee Hecht Harrison and revenue acceleration in General Assembly, confirming the value that these businesses bring to our portfolio.
As we look to the fourth quarter, we are continuing to build the next layer of the GrowTogether programme, with a focus on digital tools and solutions that deliver greater value to our clients and candidates. This includes rolling out an enhanced integrated front office solution, our global candidate app and the PERFORM methodology, putting us on track to deliver the EUR 250 million GrowTogether productivity target for 2020."
Alain Dehaze, Group Chief Executive Officer
Press Release (PDF)
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Tensid EQS Ltd., Switzerland
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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 
