The Adecco Group: Q4 & FULL YEAR 2023 RESULTS

February 29, 2024 Bharath

AD HOC ANNOUNCEMENT pursuant to Art. 53 Listing Rules of SIX Swiss Exchange

ZURICH, Feb. 29, 2024 /PRNewswire/ — Q4 & FULL YEAR 2023 RESULTS

Continued growth and significant share gains amid tougher markets, strong profitability improvement

Q4 HIGHLIGHTS

Revenues +1% yoy, led by Adecco, +3%, with double-digit growth in Germany, Italy, Iberia and both LatAm and APAC regions
Continued significant market share gains; Adecco’s relative revenue growth +830 bps
Healthy 20.2% gross margin, 80 bps lower yoy, reflecting current business mix and firm pricing
Strong 4.3% EBITA margin excl. one-offs, up 60 bps yoy, driven by productivity gains, €23 million G&A savings
Operating income €187 million, +74% yoy, constant currency
Net income €68 million, +6% yoy, weighed by a higher effective tax rate reflecting current geographic mix
Basic EPS €0.41, +5% yoy; Adjusted EPS €0.75, -1% lower yoy

FULL YEAR HIGHLIGHTS

Revenues +3% yoy to record level of €23,957 million
Healthy 20.7% gross margin, 30 bps lower yoy, reflecting current business mix and firm pricing
EBITA excl. one-offs +8% yoy organic; robust 3.6% margin, up 10 bps yoy, driven by productivity gains, G&A savings
€150 million G&A savings plan on track; year-end savings run-rate €92 million, consistent with ~€90 million ambition
AKKA synergies ahead of target at over €60 million; transaction delivers double-digit EPS accretion in year 2
Operating income €632 million, +21% yoy, constant currency
Net income €325 million, -5% yoy, mainly driven by a higher effective tax rate reflecting current geographic mix
Basic EPS €1.94, -5% lower yoy; Adjusted EPS €2.99, -9% lower yoy
Solid Cash Flow from Operating Activities EUR 563 million, up EUR 20 million yoy
Year-end Net debt/EBITDA ratio 2.5x, in line with management expectations
Proposed dividend of CHF 2.50 per share

Denis Machuel, Adecco Group CEO, commented:

“The Group delivered a strong finish to 2023 in a challenging market environment, continuing to gain share while further improving profitability through productivity and disciplined cost reduction. Adecco achieved market share gains for the sixth consecutive quarter, while improving margin. Akkodis faced market headwinds yet still delivered growth in Consulting and a strong EBITA margin driven by excellent synergy capture. In LHH, both Career Transition and Ezra delivered further exceptional growth.

Throughout 2023 we made encouraging progress against our Future@Work Reloaded plan to bring the Group to its full potential. We are simplifying the organisation and are on track to deliver on our €150 million G&A savings run-rate target by mid-year. Execution has improved through greater local empowerment and performance management rigour, and we are growing market share – while maintaining the proper balance between top and bottom line. My sincere thanks go to our incredible teams of colleagues, associates, and consultants around the world for a strong 2023.

As we outlined at our Capital Markets Day in November 2023, we will continue to deliver on our Simplify-Execute-Grow plan methodically in 2024. We are harnessing technology to drive efficiencies and competitive edge, reinvigorating our winning culture, and remain laser focused on creating further value for our stakeholders.”

Full Press Release

Webcast Details | Investors & Analysts

Investor Relations, +41 (0)44 878 88 88

Logo – https://mma.prnewswire.com/media/2350635/The_Adecco_Group_Logo.jpg

View original content:https://www.prnewswire.co.uk/news-releases/the-adecco-group-q4–full-year-2023-results-302074812.html