Adecco SA 2nd Quarter 2020 Results
August 06 2020 - 12:00AM
UK Regulatory
Dow Jones received a payment from Newsbox to publish this press
release.
2nd Quarter 2020 Results
RESILIENCE AND AGILITY IN Q2 2020
Strong margin and cash flow performance
Summary and highlights
· Revenues down 29% year-on-year on a reported basis, and down 28% organically1
and trading days adjusted (TDA), impacted by widespread lockdown measures
implemented in response to COVID-19
· Revenue trend improved as the quarter progressed, with June declining 26%
organically and TDA year-on-year and July showing further gradual
improvement
· Resilient gross margin performance, down 20 bps yoy to 18.8%, and down 10 bps
organically; supported by strength and balance of portfolio, performance by
LHH (career transition) and firm pricing discipline
· Agile cost management led to positive EBITA2 margin excluding one-offs3 of
1.8%, despite sharp revenue decline
· Strong cash flow and balance sheet with cash conversion of 145% and net
debt/EBITDA excluding one-offs at 0.6x
· Continued investment and progress in the Group's strategic priorities ??"
GrowTogether, IT and the Ventures
"The public health and economic crisis linked to COVID-19 intensified during Q2,
creating an extremely challenging market environment. The Adecco Group responded
swiftly and proactively to secure the wellbeing and safety of our colleagues and
associates, and to support our clients.
In the face of these unique challenges our businesses demonstrated resilience,
performing ahead of the market in a number of key countries including France,
Italy, Spain and Japan. Throughout the first half the Group remained solidly
profitable with strong gross margin performance despite the steep revenue
declines. This is evidence of the disciplined cost management of our teams and
the balanced portfolio we have built in recent years. Cash flow during the
quarter was also strong.
While mitigating the short-term impacts of the crisis we maintained a firm focus
on our strategy to Perform, Transform and Innovate. The recent implementation of
our integrated front office system (InFO) was an enabler of the growth in Japan
and we continued the InFO roll out in Spain and France during Q2. We also
digitised our PERFORM methodology to adapt to remote working.
We see early signs of improvement as lockdowns ease, and we have supported
almost 100,000 associates back to work since the April trough. Nevertheless, the
recovery is likely to be gradual and potentially volatile, as much uncertainty
persists.
Finally and most importantly, I would like to sincerely thank our valued
customers for their trust in us throughout this historic crisis, and express my
gratitude to our employees and associates for their unwavering commitment and
tireless ongoing work in remarkably challenging circumstances."
Alain Dehaze, Group Chief Executive Officer
1Organic growth is a non-US GAAP measure and excludes the impact of currency,
acquisitions and divestitures.
2EBITA is a non-US GAAP measure and refers to operating income before
amortisation and impairment of goodwill and intangible assets.
3In Q2 2020, EBITA included one-offs of EUR 25 million; in Q2 2019, EBITA
included one-offs of EUR 24 million.
Note to Editors
Additional information is provided under the following links:
· About the Adecco Group
· The Adecco Group brands
Press Release (PDF)
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August 06, 2020 01:00 ET (05:00 GMT)
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