The Adecco Group: Q3 22 RESULTS

- AD HOC ANNOUNCEMENT pursuant to Art. 53 Listing Rules of SIX Swiss Exchange
- Accelerated growth and market share momentum, robust profitability

ZURICH, Nov. 3, 2022 /PRNewswire/ --

HIGHLIGHTS

• Revenues +16% reported, +6% yoy organic TDA
• Growth leadership in Adecco; relative revenue growth +500 bps qoq in Q3, and +1,300 bps year-to-date
• Gross profit +5% organic yoy; Permanent Placement fees +23% yoy
• Strong gross margin of 21.0%, supported by mix and pricing
• Robust EBITA margin excl. one-offs of 3.6%, with conversion ratio and productivity better sequentially. Year-on-year movement reflects Adecco and LHH's investment plans and lower benefit from special items
• Operating income €164 million; Basic EPS €0.65; Adjusted EPS €0.90, -17% yoy
• AKKA on track; >€40 million 2023 revenue synergies won; year-end 2022 total EBITA synergy run-rate >€40 million

Adecco Group will host a Business update today, starting 09:30 CET

• The Group's CEO and CFO will provide detailed plans on how they will improve financial performance, deploying three group-wide levers to simplify the organisation, improve execution and prioritise ways to grow market share
• Group G&A cost savings plan announced, targeting €150 million run-rate by mid-2024

Denis Machuel, Adecco Group CEO, commented:

"The Group made strong progress this quarter, as we delivered on our commitment to return to a growth leadership position in the Adecco business. Our Akkodis GBU continued to perform well and the AKKA integration, including synergy capture, remains firmly on track. In LHH, our digital investments showed positive momentum with both Ezra and Hired reporting healthy growth.

Looking ahead, we are determined to accelerate growth across all GBUs, and bring our EBITA margin back to a leading level. With these priorities in mind, today I am unveiling a detailed operational plan to sharpen execution at the Adecco Group. Termed "Future@Work Reloaded", the plan will accelerate implementation of our existing strategy, strengthen resilience in the face of external headwinds, and improve both operational and financial performance. I firmly believe in the quality of our assets, and with this plan, commit to unlocking our potential and driving the Group to achieve a ~6% EBITA margin." 

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