The Adecco Group: Q2 22 Results - Market share momentum, solid growth and margin
Adecco Group reported a 4% year-over-year revenue increase in organic TDA, with strong contributions from all three Global Business Units (GBUs). Key highlights include a 7% organic gross profit growth, driven by a 38% rise in Permanent Placement fees and a solid gross margin of 21.1%. The company secured €20 million in synergies from the acquisition of AKKA, with expected year-end run-rate synergies increasing to over €40 million. CEO Denis Machuel emphasized the focus on performance improvement and market share growth as priorities moving forward.
- 4% year-over-year revenue increase in organic TDA.
- Strong performance in Adecco APAC (+14%), LHH Recruitment Solutions (+12%), and Akkodis (+14%).
- 7% organic gross profit growth; Permanent Placement fees increased by 38%.
- Gross margin improved to 21.1%, a 100 basis points increase.
- 100% ownership of AKKA with €20 million synergies secured for 2022.
- Moderated contribution from LHH leading to solid but constrained EBITA margin of 3.5%.
- Further opportunity for performance improvement indicates unsatisfied potential.
ZURICH, Aug. 4, 2022 /PRNewswire/ --
AD HOC ANNOUNCEMENT pursuant to Art. 53 Listing Rules of SIX Swiss Exchange
HIGHLIGHTS
- Revenues +
4% yoy organic TDA, up in all 3 GBUs - Strong performance in Adecco APAC +
14% , LHH Recruitment Solutions +12% , and Akkodis +14% - Investment plan implemented with agility, driving relative revenue growth improvement in Adecco of +400 bps sequentially, in addition to +400 bps improvement in Q1
- Gross profit +
7% organic yoy; Permanent Placement fees +38% - Strong gross margin at
21.1% , +100 bps, driven by portfolio shift, positive mix and pricing - Solid EBITA margin excl. one-offs of
3.5% , as anticipated, reflecting Adecco's investment plan and moderated contribution from LHH 100% ownership of AKKA;€20 million synergies secured for 2022, anticipating year-end run-rate +€40 million - June exit rate
4% and July volumes modestly above Q2 levels
Denis Machuel, Adecco Group CEO, commented:
"The Group made progress this quarter in several important areas - the Akkodis integration is fully on track and the combined business delivered healthy growth, Adecco improved its market share performance and showed some encouraging signs of turnaround in the US, and the LHH Recruitment Solutions business and digital ventures including Ezra and Hired continued to perform strongly. At the same time, it is clear that there is further opportunity for performance improvement to reach our full potential. In my first month as Group CEO I have spent considerable time visiting our markets, engaging with our operations, listening to our clients, and meeting with our people. I am convinced we have excellent businesses and fantastic people across the organisation. Identifying the levers and then executing on them to improve performance is my absolute priority. The Group continues to focus on executing against its strategy, delivering productivity improvements from the investments we have made, and growing our market share by being the partner of choice to our clients and the talent we serve."
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SOURCE The Adecco Group
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