Q4 & FY21 Results

Rhea-AI Summary

The Adecco Group reported a Q4 revenue increase of 3% sequentially and 1% year-over-year, driven by Modis, which saw a 14% growth. For the full year, revenues grew 9% year-over-year, with a gross profit margin of 20.4%. Key financial metrics for Q4 include an operating income of €191 million and net income of €184 million, resulting in a basic EPS of €1.11, up 21% year-over-year. The company also announced a proposed dividend of CHF 2.50 per share and aims for sustainable growth amidst ongoing pandemic challenges.

Positive

• Revenues increased by 3% sequentially and 1% year-over-year in Q4.
• Gross profit margin improved to 20.4% for the full year.
• Basic EPS increased by 21% year-over-year to €1.11 in Q4.
• Operating income for Q4 was €191 million, with a net income of €184 million.
• Cash flow from operating activities reached €722 million with an 83% cash conversion rate.
• Announced acquisition of majority stake in AKKA, expected €15 million EBITA synergies in 2022.

Negative

• Despite overall growth, the demand for Career Transition services decreased.

ZURICH, Feb. 24, 2022 /PRNewswire/ --

Q4 HIGHLIGHTS

• Revenues +3% sequentially, +1% yoy organic TDA¹, led by Modis +14%
• Gross profit +7% organic yoy; led by Adecco +7% and LHH's Recruitment Solutions +c.35%
• 20.7% gross profit margin driven by portfolio, favourable mix and pricing
• EBITA excluding one-offs² €259 million; 4.7% margin, reflecting cost discipline while investing in growth
• Operating income €191 million; Net Income €184 million; Basic EPS €1.11, up 21% yoy

FULL YEAR HIGHLIGHTS

• Revenues +9% yoy organic TDA¹; Gross profit +15% organic yoy
• Leading gross profit margin of 20.4%, driven by portfolio, favourable mix and pricing
• EBITA excluding one-offs² €953 million; 4.6% margin sector-leading
• Operating income €780 million; Net Income €586 million; Basic EPS €3.62
• Cash flow from operating activities €722 million; cash conversion 83%
• Good strategic delivery: GBU organisation put in place; AKKA acquisition announced; LHH re-brand underway
• Acquisition of majority stake in AKKA completed; good line of sight on €15 million 2022 EBITA synergies
• Proposed dividend per share CHF 2.50, composed of CHF 1.25 gross plus CHF 1.25 from reserves not subject to withholding tax

Alain Dehaze, Adecco Group CEO, commented: "Good progress has been made in the first year of implementation of our Future@Work strategy. We have established all three GBUs as Global Leaders, and accelerated our pivot to higher value services, as evidenced by this year's record gross margin level. At the GBU level, Modis delivered outstanding performance in 2021, with strong top line growth and margin uplift, providing a strong foundation for the upcoming integration of AKKA. In LHH, Recruitment Solutions excelled, taking market share in permanent recruitment, while Career Transition navigated lower demand for their services. Adecco delivered sector-leading profitability through 2021, while continued investment supported improved sequential revenue momentum in the last quarter. Looking ahead, while recognising ongoing pandemic related challenges, we expect healthy demand for the Group's services in 2022, and are investing to accelerate sustainable, profitable growth."

FULL  PRESS RELEASE

The Adecco Group, Investor Relations, +41 (0)44 878 88 88

Unless otherwise noted, all growth rates in this release refer to same period in prior year.
[1] On an organic and trading days adjusted basis.
[2]  For further details on the use of non-GAAP measures in this release, refer to the Financial Information section and the Additional Information Section of the 2020 Annual Report.

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SOURCE The Adecco Group

FAQ

What were Adecco's Q4 results for 2021?

Adecco reported a Q4 revenue increase of 3% sequentially and 1% year-over-year, with a basic EPS of €1.11.

What is the expected EBITA synergy from the AKKA acquisition?

The expected EBITA synergy from the AKKA acquisition is €15 million for 2022.

What is Adecco's proposed dividend per share for 2021?

Adecco's proposed dividend per share is CHF 2.50.

How did Adecco perform in fiscal year 2021?

In fiscal year 2021, Adecco achieved a 9% revenue growth year-over-year and a gross profit margin of 20.4%.

What challenges does Adecco mention for 2022?

Adecco recognizes ongoing pandemic-related challenges but expects healthy demand for its services in 2022.