In This Article:
-
Revenue: EUR5.6 billion, 2% lower year on year on an organic trading days adjusted basis, 3% higher sequentially.
-
Gross Margin: 19.4%, 40 basis points lower year on year.
-
EBITA: EUR132 million, margin of 2.4%, 40 basis points lower year on year.
-
Adjusted EPS: $0.48, 20% lower year on year.
-
Cash Flow from Operating Activities: Minus EUR144 million.
-
Cash Conversion Ratio: 105%.
-
Net Debt: EUR2.7 billion.
-
Net Debt to EBITDA Ratio: 3.2 times.
-
Adecco Revenues: EUR4.4 billion, 1% lower year on year, 3% higher sequentially.
-
Adecco EBITA Margin: 3.1%, up 10 basis points year on year.
-
Adecco Americas Revenues: 4% higher, with North America 2% lower and Latin America 14% higher.
-
Adecco APAC Revenues: Up 11%.
-
Akkodis Revenues: 8% lower year on year.
-
LHH Revenues: 5% lower year on year.
Release Date: May 08, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Adecco Group AG (AHEXF) gained further market share with solid margin performance, outperforming key competitors by 130 basis points.
-
The company saw a return to growth in the Adecco US segment, with revenues improving sequentially.
-
Adecco Group AG (AHEXF) is adopting AI solutions to accelerate growth, including pre-screening agents in the UK and new AI capabilities in Germany.
-
The company's cash conversion ratio was strong at 105%, indicating efficient cash management.
-
Adecco Group AG (AHEXF) has a robust financial structure with strong liquidity resources, including an undrawn EUR750 million revolving credit facility.
Negative Points
-
Revenues were EUR5.6 billion, 2% lower year on year on an organic trading days adjusted basis.
-
Adjusted EPS was $0.48, 20% lower year on year, mainly due to lower business income.
-
Cash flow from operating activities was negative at minus EUR144 million.
-
The EBITA margin, excluding one-offs, was 2.4%, 40 basis points lower year on year.
-
Akkodis Germany faced significant pressure, with revenues 15% lower due to weaker demand in the automotive sector.
Q & A Highlights
Q: Can you provide more color on the trends by different GBUs and whether Adecco has reached a break-even on growth potential in Q2? A: Coram Williams, CFO: The chart shows modest positive momentum through Q1, continuing into Q2. This is broad-based across major territories, with North America returning to growth. We are close to break-even on volumes, indicating positive momentum. Other business volumes vary, with career transition showing good momentum, while permanent placements face pressure.