The Adecco Group: Q4 & FULL YEAR 2023 RESULTS
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."
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SOURCE The Adecco Group
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