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Q2 2021 Results

Significant revenue improvement and strong margin performance
July 28, 2021

Summary and highlights

  • Revenues up 29% on an organic(a), trading days adjusted basis (“TDA”), led by Adecco, up 33% organic TDA

  • Revenue growth strongest in higher-value activities; Permanent Placement up 88% organic and Training, Upskilling & Reskilling up 78% organically

  • Gross profit up 39% organically, with growth in all Global Business Units, led by Adecco

  • Gross margin 20.1%, up 140 bps organically reflecting improved mix, pricing discipline

  • EBITA(a) excluding one-offs EUR 237 million; 4.5% margin, up 270 bps, with gross margin performance supported by strong productivity

  • Operating income EUR 211 million, up 627%

  • Cash conversion of 64%, impacted by working capital absorption due to the improving revenue growth

  • Revenues in June 2021 up 23% organically and TDA

Alain Dehaze, Adecco Group CEO, commented: “The second quarter performance was strong with positive momentum throughout, particularly in Permanent Placement. Revenues are now 5 percent below pre-crisis levels on an underlying basis, while the Group’s gross profit is now broadly in line with pre-crisis levels. This is well aligned to the Group’s drive to deliver sustainable, profitable growth through organic and inorganic actions. Our businesses continued to execute well, with margin improvement supported by mix, pricing and strong productivity. At the same time, the Group has begun to extend its investment in sales to drive growth.”

“We have seen pockets of talent scarcity and wage inflation in our end-markets, particularly in technology solutions, and the pace of recovery in Permanent Placement is unprecedented. We are cautiously optimistic that all our service lines, including Flexible Placement, have scope to recover further in the quarters ahead. We are confident that with the implementation of our Future@Work strategy, including the digital transformation of our business, we will be optimally positioned to take market share,” he added.