Adecco SA Final Results
26 Februar 2020 - 7:00AM
UK Regulatory
Dow Jones received a payment from Newsbox to publish this press
release.
Final Results
GROW TOGETHER AND IMPROVED BUSINESS MIX DRIVE MARGIN STRENGTH
Economic outlook remains uncertain and continues to impact revenues
Q4 2019 summary and highlights
·
Revenues down 3% year-on-year, and down 4% organically1 and trading days
adjusted (TDA)
·
Further gross margin improvement, up 20 bps yoy to 19.3%, driven by positive
business mix and value-based pricing
·
EBITA2 margin excluding one-offs3 4.9%, up 10 bps yoy; GrowTogether
productivity improvements and business mix more than offset the impact of
lower revenues and discrete benefits in the prior year
·
Strong cash flow with DSO improving by one day year-on-year and cash
conversion at 93%
·
Revenues in January 2020 down 5% TDA year-on-year, with volumes in February
indicating a similar trend
FY 2019 summary and highlights
·
Revenues down 2% year-on-year, and down 3% yoy organically and TDA, as
economic growth and staffing markets slowed in Europe and North America
·
EBITA margin excluding one-offs 4.6%, up 10 bps yoy, with GrowTogether
driving structural margin improvement
·
Net income attributable to Adecco Group shareholders EUR 727 million, up 59%
year-on-year
·
EUR 600 million share buyback announced in addition to proposed dividend of
CHF 2.50 per share
·
GrowTogether delivered EUR 140 million productivity savings, ahead of target,
with improved Net Promoter Score; General Assembly and digital ventures
achieved strong growth and synergies within the Adecco Group ecosystem
"The Group concluded 2019 with strong performance against a backdrop of ongoing
economic uncertainty and market slowdown. Despite the challenging conditions
that impacted revenues, we did not compromise long-term investments and remained
focused on delivering our 'Perform, Transform, Innovate' strategy to position
the business for profitable growth. The results of our GrowTogether programme,
pricing actions and strengthened business mix drove a structural improvement in
profitability, with Q4 gross margin up 20 bps year-on-year, the sixth
consecutive quarterly increase.
In 2019, GrowTogether was further embedded into the organisation, over-achieving
against its productivity commitment and supporting a 10 bps improvement in EBITA
margin. This profitability improvement was delivered while we continued to
invest in new technology, building our digital product portfolio, and
strengthening the ventures in line with our innovation strategy. Strong growth
was achieved at General Assembly, and we gained further customer traction with
our unique 360 ecosystem of HR solutions and brands. These results demonstrate
that our strategic priorities are the right ones, and we are successfully
executing against them. We also generated improved free cash flow and ended the
year with a strong balance sheet, allowing us to announce a share buyback of EUR
600 million, in addition to the ordinary dividend, for a total cash return to
shareholders of close to EUR 1 billion for 2019.
2020 will mark the final year of our current strategic cycle and focus remains
on delivering further margin improvement and profitable growth. Through
GrowTogether we are deploying and scaling proven digital tools, including our
integrated front-office solution and global candidate app, to differentiate our
business and make our operations more efficient. We are also fully embedding
lean processes (PERFORM) into how we work. We remain committed to achieving the
EUR 250 million GrowTogether productivity target for 2020, and to leveraging our
360 HR solutions ecosystem to support the success of our clients and candidates,
and to deliver profitable growth."
Alain Dehaze, Group Chief Executive Officer
1Organic growth is a non-US GAAP measure and excludes the impact of currency,
acquisitions and divestitures.
2EBITA is a non-US GAAP measure and refers to operating income before
amortisation and impairment of goodwill and intangible assets.
3In 2019, EBITA included one-offs of EUR 36 million in Q4 2019 and EUR 81
million in FY 2019; in 2018, EBITA included one-offs of EUR 59 million in Q4
2018 and EUR 93 million in FY 2018.
Note to Editors
Additional information is provided under the following links:
· The Adecco Group Company Profile
· The Adecco Group ??" our brands video
Press Release (PDF)
### END ###
+---------------------------++--------------++---------------------------------+
|Provider ||Channel ||Contact |
+---------------------------++--------------++---------------------------------+
|Tensid EQS Ltd., ||newsbox.ch ||Provider/Channel related |
|Switzerland ||www.newsbox.ch||enquiries |
|www.tensid.ch || ||marco@tensid.ch |
| || ||+41 41 763 00 50 |
+---------------------------++--------------++---------------------------------+
(END) Dow Jones Newswires
February 26, 2020 01:00 ET (06:00 GMT)
Adecco (LSE:0QNM)
Historical Stock Chart
Von Mai 2024 bis Jun 2024
Adecco (LSE:0QNM)
Historical Stock Chart
Von Jun 2023 bis Jun 2024