THE ADECCO GROUP PROVIDES A STRATEGIC PROGRESS UPDATE AT ITS ANALYST & INVESTOR SEMINAR TODAYSeptember 19, 2018
THE ADECCO GROUP PROVIDES A STRATEGIC PROGRESS UPDATE AT ITS ANALYST & INVESTOR SEMINAR TODAY
London, United Kingdom, 19 September 2018: The Adecco Group, the world’s leading HR solutions partner, is today hosting its Analyst and Investor Seminar in London. Management will present achievements to date on its ‘Perform, Transform and Innovate’ strategic agenda, with a particular focus on the initiatives GrowTogether and New Ventures. A short trading update will also be provided.
At the Analyst and Investor Seminar, Alain Dehaze, Group CEO, and Hans Ploos van Amstel, Group CFO, will re-confirm the strategic and financial commitments announced at the 2017 Capital Markets Day (CMD) and provide an update on progress to-date.
The Adecco Group has a clear strategy to achieve structurally higher revenue growth, drive sustained EBITA margin improvement, and maintain a progressive and recession-proof dividend. The Group’s strategy is built around two major initiatives, GrowTogether and New Ventures, with distinct but complementary goals. Investments in these initiatives increased during 2018 and will continue, in-line with the commitment made at the 2017 CMD.
With GrowTogether, the Adecco Group is transforming and digitising its core business to differentiate its services and take profitable market share. At the seminar, members of regional management and the Group CIO will discuss progress made during 2018, with a focus on three key areas: sales effectiveness, recruiting efficiency and middle- and back-office process optimisation. GrowTogether is expected to reduce SG&A as a percentage of sales by 100bps by 2020 (when compared to 2016), while also supporting revenue growth.
Meanwhile the New Ventures are capturing growth opportunities in adjacent markets, leveraging the Group’s competitive assets and the workforce megatrends. At the seminar, the founders of recently acquired ventures General Assembly and Vettery will be joined by internal venture Adia, showcasing the evolution of the Group’s digital strategy since the 2017 CMD. These high-growth, high-value businesses are expected to make a material contribution to Group profitability in the medium-term, while remaining in an investment phase in the short-term.
In conjunction with today’s presentations, the Adecco Group is also providing an update on current trading. In July and August, revenues increased by 2% organically and trading days adjusted. Volume trends in early September indicate a slight deceleration compared to the first two months of Q3 2018. Compared to Q2 2018, growth in Continental Europe slowed, consistent with softer market and economic data. In Germany revenue growth continues to be impacted by the consolidation of the Adecco and Tuja general staffing brands. In the markets, such as France, where the ‘Perform, Transform and Innovate’ strategy is most well established, the Group continues to see solid performances.
CEO, Alain Dehaze, said: “We are pleased to provide an update on the significant progress made with our strategic initiatives since the 2017 Capital Markets Day. GrowTogether pilot countries have confirmed the large opportunity indicated last year, and we are very excited about the potential of our digital platform businesses and General Assembly. Recent trading has been more challenging than expected, driven by Continental Europe. We are already taking the appropriate measures to adjust our costs to reflect this lower growth environment. Our commitment to the Group’s transformation and digitisation remains unchanged.”
The morning session of the seminar, from 10:00 to 13:20 CEST, will be webcast. Supporting materials from the presentations will be available on the Investor Relations section of Adecco Group website.