ROBUST START TO 2021

Further strengthening of margin through delivery of strategy

Summary and highlights

  • Revenues up 2% year-on-year organically1 and trading days adjusted (TDA)
  • Gross margin 20.1%, up 80 bps yoy, driven by improving mix and pricing discipline
  • EBITA2 margin excluding one-offs3 4.2%, up 120 bps yoy, with positive gross margin performance further supported by productivity improvement
  • Strong financial position and cash flow development: Net Debt/EBITDA4 excluding one-offs 0.3x, Free Cash Flow5 at EUR 89 million. Share buyback commenced in April
  • Revenues in March 2021 up 9% organically and TDA, with volumes in April indicating gradual sequential recovery

"The Group had a robust start to 2021, showing continued resilience and sector-leading profitability. Despite the ongoing challenges from Covid-19, we returned to modest revenue growth, and several businesses are now back above 2019 levels. Positive mix development, pricing and cost discipline drove broad-based margin improvement. With our diversified portfolio of services we support our clients and candidates with the solutions they need to adapt to the future of work. As an essential service provider, we have an important role to play in helping society successfully exit from the current crisis, supporting a recovery in employment and a safe return to work for all."

Since launching our Future@Work strategy at the end of last year, we have made good progress. We successfully transitioned to a new organisation structure built around three Global Business Units - Adecco, Talent Solutions and Modis - and several key strategic initiatives are well underway.

We are encouraged to see continued recovery, though we are mindful of uncertainties related to Covid-19 and the economic environment. Our unparalleled service range, operational agility and strong financial position provide a platform for generating long-term value for all our stakeholders, and delivering on our ambitious financial targets over the medium term. While the economic recovery may remain uneven, we will continue to implement our strategy with one clear objective: to make the future work for everyone."

Alain Dehaze, Chief Executive Officer

1

Organic growth is a non-US GAAP measure and excludes the impact of currency, acquisitions and divestitures.

2

EBITA is a non-US GAAP measure and refers to operating income before amortisation and impairment of goodwill and intangible assets.

3

In Q1 2021, EBITA included one-offs of EUR 6 million; in Q1 2020, EBITA included one-offs of EUR 18 million.

4

Net debt and Net debt to EBITDA are non-US GAAP measures. Net debt comprises short-term and long-term debt less cash and cash equivalents and short-term investments. Net debt to EBITDA is calculated as net debt at period end divided by last 4 quarters of EBITA excluding one-offs plus depreciation.

5

Free cash flow is a non-US GAAP measure and comprises cash flows from operating activities less capital expenditures.

Note to Editors

Additional information is provided under the following links:

  • About the Adecco Group
  • The Adecco Group brands


Press Release (PDF)



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