The Adecco Group: Q1 2023 Results

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The Adecco Group

May 04, 2023, 00:45 ET

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

ZURICH, May 4, 2023 /PRNewswire/ -- Q1 2023 Results

Delivering strong market share gains, revenue growth and gross margin

Q1 HIGHLIGHTS

Revenues +8% reported, +3% yoy organic TDA, with standout performance in LHH Career Transition, +63%, and double-digit growth in Adecco APAC, Germany, Latam, EEMENA
Broad-based market share gains; Adecco's relative revenue growth +600 bps in Q1
Sustained strong 21.3% gross margin driven by favourable business mix, supportive solutions mix and pricing
Robust EBITA margin excl. one-offs of 3.1%, includes impact from the timing of AKKA's consolidation and FESCO JV income, and a moderated contribution from Adecco North America
Group productivity +2% yoy; Adecco productivity +5% qoq with FTEs -2% qoq
Akkodis integration well progressed; strong momentum in Consulting
Operating income €144 million, +3% constant currency
Basic EPS €0.55; Adjusted EPS €0.72

Denis Machuel, Adecco Group CEO, commented:

"The Group achieved a very good Q1 performance, effectively delivering against our plan, with growth that continued to outpace the market and a gross margin that remained industry-leading. In Adecco, we achieved further significant share gains with outperformance in many key geographies, while dynamic pricing and productivity improvements kept profitability at a solid level. Akkodis continued to perform well including navigating the US tech staffing slowdown, with the team harnessing the newly combined tech and engineering capabilities to secure continued major consulting contract wins, with a healthy pipeline in place. In LHH, our Career Transition business actively captured further corporate restructuring projects resulting in record high performance levels, while Ezra, our digital coaching business, also posted excellent growth.

Looking ahead, we still have a number of areas that require further focus and we are fully concentrated on these, while remaining agile and responsive to market conditions. Overall we see strong momentum from our Simplify-Execute-Grow plan; our teams are equally focused on achieving significant G&A cost reduction, which we expect will begin to flow through in H2, while driving growth and market share."

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