Adecco Group Inc.

Latest Results (20.08.2024):

Revenue Performance

In Q2 2024, Adecco Group Inc. reported revenues of EUR 5,844 million, which represents a 2% decrease on an organic, trading days adjusted (TDA) basis compared to the same period last year. The revenue decline was influenced by challenging market conditions, although the Group managed to achieve a relative revenue growth of +375 basis points.

Gross Profit

Adecco Group Inc.'s gross profit for Q2 2024 was EUR 1,132 million, reflecting a 5% decrease organically and a 6% decrease on a reported basis. The gross margin stood at 19.4%, which is 70 basis points lower than the previous year, due to the current business mix and firm pricing strategies.

SG&A Expenses

For Q2 2024, Adecco Group Inc. reported SG&A expenses, excluding one-offs, of EUR 969 million, which is a 5% reduction organically and a 6% reduction on a reported basis. This improvement resulted in SG&A expenses being 16.6% of revenues, a 50 basis points improvement year-on-year.

EBITA and Operating Income

EBITA excluding one-offs for Adecco Group Inc. in Q2 2024 was EUR 179 million, stable in constant currency terms but 3% lower on a reported basis. The operating income was EUR 113 million, remaining stable year-on-year in constant currency terms, reflecting disciplined cost management and favorable timing of FESCO JV income.

Net Income and Cash Flow

Adecco Group Inc.'s net income attributable to shareholders for Q2 2024 was EUR 58 million, a 6% decrease year-on-year. The Group's operating cash flow improved significantly, increasing by EUR 82 million year-on-year to EUR 162 million, while free cash flow rose by EUR 100 million to EUR 128 million, demonstrating effective working capital management.