Improved revenue growth and market share, with strong progress in gross margin
- Revenues +5% yoy organic TDA, led by Modis +14%, LHH Recruitment Solutions +15%, Adecco APAC +15%
- Adecco’s investment plan drives overall relative revenue improvement of +400 bps sequentially
- Gross profit +9% organic yoy; Permanent Placement +62%
- Step change in gross margin to 21.1%, +100 bps, driven by portfolio shift, positive mix and pricing
- EBITA excluding one-offs2 €185 million; solid 3.4% margin, lower yoy, as anticipated, due to Adecco’s investment plan, the absence of non-recurring benefits and a moderated contribution from LHH Career Transition
- Operating income €146 million; Net income €92 million; Basic EPS €0.56, 28% lower yoy
- Full ownership of AKKA expected May 12, 2022; good line of sight on 100% of 2022 targeted synergies, of which >50% secured to date; first revenue synergies delivered in client wins
Alain Dehaze, Adecco Group CEO, commented:
“With a concerted focus on gaining market share, the Group delivered improved growth this quarter. The targeted investment in headcount that we have deployed in Adecco is showing results, with notable improvement in several key regions, and LHH Recruitment Solutions continued to capture the strong market demand. The Group also delivered strong progress on gross margin through portfolio changes, favourable mix, and pricing actions.
The Group acquired control of AKKA at end February, and together with Modis, they have already secured our first combined client wins. The integration plan is well on track, and we look forward to operating as Akkodis from mid-May.
Looking ahead, supported by improving productivity and agile investment in sales capacity, management is confident the Group will deliver higher growth and stronger margins in the second half of 2022.”