The Adecco Group: Q2 2023 Results

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

ZURICH, Aug. 3, 2023 /PRNewswire/ -- Q2 2023 Results

Strong revenue growth, further market share gain, good cost management

• Revenues +4% yoy organic TDA; excellent performance in Adecco, +5%, with growth across all regions, in Akkodis consulting, +12%, and in LHH Career Transition, +101%
• Further market share gain; Adecco's relative revenue growth +800 bps in Q2 23
• Healthy 20.7% gross margin, 50 bps lower organically, mainly reflecting current business mix
• SG&A excl. one-offs lower, at 17.7% of revenues, from 17.9% in Q2 22 and 18.4% in Q1 23, supported by a reduction in G&A costs and productivity improvement
• Group productivity +3% yoy; Adecco productivity +3% qoq with FTEs -2% qoq
• Robust 3.1% EBITA margin excl. one-offs; underlying sequential improvement of 30 basis points when excluding the timing impact of FESCO JV income
• On track to deliver G&A savings; year-end expected run-rate €60 million
• Operating income €117 million, flat year-on-year
• Basic EPS €0.37; Adjusted EPS €0.67

Denis Machuel, Adecco Group CEO, commented:

"The Group delivered another quarter of revenue acceleration and market share gain. The Adecco business achieved growth across all regions at a level that continued to outpace its competitors, and with underlying margin improvement. Adecco US saw sequential improvement and further signs of turnaround progression. In LHH, both the Career Transition and Ezra businesses delivered record quarters and profitability strengthened for the GBU overall. Akkodis delivered strong growth in consulting with excellent progress in the US; while the staffing side of the business was hindered by hiring contraction in the tech sector. Integration work and synergy capture is advancing smoothly. Across the Group we continue to drive productivity and cost discipline, with G&A down in the quarter and delivery against the committed savings plan firmly on track. Looking ahead, whilst recognising a challenging macro-economic environment, we see positive momentum, driven by the strength of our unique portfolio and our relentless focus on performance."

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