Feb 26, 2025   SOURCE: PR NewsWire

The Adecco Group: Q4 & FULL YEAR 2024 RESULTS

Market share gains; strong cash generation; above target G&A savings driving resilient profitability

AD HOC ANNOUNCEMENT pursuant to Art. 53 Listing Rules of SIX Swiss Exchange

ZURICH, Feb. 26, 2025 /PRNewswire/ -- Q4 HIGHLIGHTS

    --  Revenues -5%, and -3% organic. By GBU, Adecco -5%, Akkodis -6%, LHH -3%
    --  Resilient 19.2% gross margin; pricing firm, volume and mix effects
    --  Resilient 3.2% EBITA margin; negative operating leverage partly offset
        by strong G&A savings
    --  Operating income EUR144 million; Net income EUR73 million
    --  Basic EPS EUR0.43; Adjusted EPS EUR0.63
    --  Strong operating cash flow +EUR491 million, +174 million yoy; free cash
        flow EUR446 million, +211 million yoy

FULL-YEAR HIGHLIGHTS

    --  Revenues -3%, and -2% organic. Strong market share gain of +200 basis
        points
    --  Resilient 19.4% gross margin; pricing firm, volume and mix effects
    --  Resilient 3.1% EBITA margin; strong G&A savings, agile capacity
        management
    --  Operating income EUR541 million; Net income EUR303 million
    --  Basic EPS EUR1.81; Adjusted EPS EUR2.55
    --  Strong cash generation: operating cash flow +EUR707 million; free cash
        flow +EUR563 million; 109% conversion ratio
    --  Net debt EUR2.5 billion, ahead of management expectations
    --  Above target FY24 G&A savings of EUR174 million delivered (net of
        inflation versus 2022 baseline)
    --  Updated dividend policy leading to proposed DPS of CHF 1.00
    --  End-24 net debt/EBITDA ratio 2.8x; targeting <= 1.5x net debt/EBITDA
        ratio by end-27

Denis Machuel, Adecco Group CEO, commented: "We are rigorously executing against our Future@Work Reloaded strategy. We have consistently gained market share in challenging markets, streamlined the business model and reduced G&A costs by over 20 percent, ahead of target, and delivered strong cash generation. We are accelerating the roll-out of AI-powered technologies and the expansion of our advanced digital delivery engine. Today, the Group is taking necessary action to accelerate deleveraging and increase financial flexibility with an updated dividend policy. We are increasingly confident that markets will improve, driving growth; and our continued rigorous execution will drive further market share gains, profitability and cash in future periods, supported by the excellent positioning of the Group's portfolio in talent and technology solutions."

Full Press Release

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Media contacts:

    --  Press Office
    --  Email: media@adeccogroup.com

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SOURCE The Adecco Group