Adecco SA 3rd Quarter Results
05 November 2019 - 5:00PM
UK Regulatory
Dow Jones received a payment from Newsbox to publish this press
release.
3rd Quarter Results
SOLID PERFORMANCE IN Q3 2019
Continued investments in IT and digital to strengthen the business
Summary and highlights
· Revenues down 2% year-on-year, and down 4% organically1 and trading days
adjusted (TDA), reflecting ongoing challenging market conditions in Europe
and the US
· Continued strong improvement in gross margin, up 70 bps yoy to 19.4%, driven
by focus on
value-based pricing and enhanced business mix
· EBITA2 margin excluding one-offs3 4.9%, down 10 bps yoy; structural
productivity improvements were offset by slowing revenue growth and
strategic IT investments
· GrowTogether transformation programme on track to deliver 2019 and 2020
commitments
· Strong balance sheet with Net Debt/EBITDA4 excluding one-offs 1.1x; cash
conversion5 84% and improved DSO
· Revenues in September and October combined down 4% organically and TDA,
in-line with Q3
"In Q3 2019, we delivered a solid performance in an uncertain external
environment. We remain focused on our business transformation and continue to
invest in our strategic priorities ??" GrowTogether, IT and our digital ventures ??"
which are fundamentally strengthening our business.
Our ongoing emphasis on value-based pricing and business mix improvement is
driving a sustained increase in gross margin, which was up 60 basis points
organically year-on-year.
We also delivered strong performances in the Career Transition and Talent
Development activities, with a return to growth in Lee Hecht Harrison and
revenue acceleration in General Assembly, confirming the value that these
businesses bring to our portfolio.
As we look to the fourth quarter, we are continuing to build the next layer of
the GrowTogether programme, with a focus on digital tools and solutions that
deliver greater value to our clients and candidates. This includes rolling out
an enhanced integrated front office solution, our global candidate app and the
PERFORM methodology, putting us on track to deliver the EUR 250 million
GrowTogether productivity target for 2020."
Alain Dehaze, Group Chief Executive Officer
1 Organic growth is a non-US GAAP measure and excludes the impact of currency,
acquisitions and divestitures.
2 EBITA is a non-US GAAP measure and refers to operating income before
amortisation and impairment of goodwill and intangible assets.
3 In Q3 2019, EBITA included one-offs of EUR 16 million; in Q3 2018, EBITA
included one-offs of EUR 4 million.
4 Net debt and Net debt to EBITDA are non-US GAAP measures. Net debt comprises
short-term and long-term debt less cash and cash equivalents and short-term
investments. Net debt to EBITDA is calculated as net debt at period end divided
by last 4 quarters of EBITA excluding one-offs plus depreciation.
5 Cash conversion is a non-US GAAP measure and is calculated as last 4 quarters
of FCFBIT divided by last 4 quarters of EBITA excluding one-offs.
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)
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November 05, 2019 01:00 ET (06:00 GMT)
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