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2nd Quarter 2020 Results 
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 
 · 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 
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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(END) Dow Jones Newswires

August 06, 2020 01:00 ET (05:00 GMT)