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The Adecco Group's Q4 and Full Year 2024 Results

The Adecco Group recently published its financial results for the fourth quarter and the entirety of 2024, revealing notable trends that underscore its market performance. In the face of challenging global conditions, the company exhibited resilience and adaptability, demonstrating its ability to maintain a strong position in the staffing industry.

Q4 Key Highlights

The fourth quarter of 2024 saw a revenue decrease of 5%, while organic revenue declined by 3%. When analyzed by business units, Adecco reported a 5% drop, Akkodis faced a 6% decrease, and LHH saw a 3% contraction. Despite these numbers, the Group maintained a robust gross margin of 19.2%, effectively managing pricing stability along with volume and mix effects.

On an operational level, the EBITA margin was recorded at 3.2%. Some of the negative impacts of operating leverage were offset by significant general and administrative savings, further reflected in the operational profit of €144 million and a net profit amounting to €73 million. The basic earnings per share (EPS) stood at €0.43, while the adjusted EPS reached €0.63. A key highlight was the impressive operational cash flow which amounted to €491 million, marking an increase of €174 million compared to the previous year. The company also reported a free cash flow of €446 million, which reflects a solid growth of €211 million year-over-year.

Annual Performance Overview

For the full year 2024, the Adecco Group experienced a 3% decrease in revenue, with an organic revenue decline of 2%. Nevertheless, the Group achieved a remarkable market share gain of 200 basis points—a testament to its effective business strategies and diligent execution.

The annual gross margin was slightly improved to 19.4%, similar to the quarter, reflecting stable pricing strategies and effective management of asset mix. Notably, the EBITA margin remained stable at 3.1%, backed by continued cost reductions in general and administrative expenses as well as agile capacity management.

The operational result for the year reached €541 million, with a net income of €303 million. The basic EPS for the year was reported at €1.81, with adjusted EPS coming in at €2.55. Cash generation remained strong, with operational cash flow hitting €707 million and free cash flow at €563 million—a transformation ratio of an impressive 109%.

However, it was noteworthy that the net debt stood at €2.5 billion, slightly above management's expectations. The group achieved general and administrative savings exceeding the FY24 target by €174 million, adjusted for inflation against the 2022 baseline.

Changes to the dividend policy have proposed a dividend per share of CHF 1.00, further underlining the firm’s commitment to returning value to its shareholders. At year-end, the net debt-to-EBITDA ratio was positioned at 2.8x, with a target of achieving a ratio below 1.5x by 2027.

CEO Comments

Denis Machuel, CEO of The Adecco Group, stated, “We are consistently implementing our strategy, Future@Work Reloaded. We have continued to gain market share in challenging markets, streamlined our business model, and exceeded our goals for reducing general and administrative costs by over 20%. Our strong cash flow enables us to accelerate the introduction of AI-driven technologies and develop our advanced digital delivery mechanisms. The Group is taking necessary steps to accelerate debt reduction while enhancing financial flexibility through an updated dividend policy. We are increasingly confident that market conditions will improve, which will spur growth; our continued rigorous execution will lead to further market share gains, profitability, and cash flow, supported by the excellent positioning of our portfolio in talent and technology solutions.”

With these results, The Adecco Group affirms its strategic resilience and commitment to maintaining a leading edge in the staffing and workforce solutions sector while adapting to evolving market landscapes.