Q1 2023 report
Denis Machuel, CEO & Coram Williams, CFO
4 May 2023
1
Disclaimer & note on terminology
Forward-looking statements
Information in this release may involve guidance, expectations, beliefs, plans, intentions or strategies regarding the future. These forward- looking statements involve risks and uncertainties. All forward-looking statements included in this release are based on information available to the Adecco Group AG as of the date of this release, and we assume no duty to update any such forward-looking statements. The forward- looking statements in this release are not guarantees of future performance and actual results could differ materially from our current expectations. Numerous factors could cause or contribute to such differences. Factors that could affect the Company's forward-looking statements include, among other things: global GDP trends and the demand for temporary work; the impact of the global outbreak of novel coronavirus disease (COVID); changes in regulation affecting temporary work; intense competition in the markets in which the Company operates; integration of acquired companies; changes in the Company's ability to attract and retain qualified internal and external personnel or clients; the potential impact of disruptions related to IT; any adverse developments in existing commercial relationships, disputes or legal and tax proceedings.
Non-US GAAP measures used
'Organic growth' excludes the impact of currency, acquisitions and divestitures. This presentation refers to revenue growth yoy on an organic, trading days adjusted basis, unless otherwise stated.
This presentation refers to gross margin development yoy on an organic basis, unless otherwise stated.
'EBITA' refers to operating income before amortisation and impairment of goodwill and intangible assets. This presentation refers to EBITA, EBITA margin and yoy margin development excluding one-offs, unless otherwise stated.
'Net debt' comprises short-term and long-term debt less cash and cash equivalents and short-term investments.
'Free cash flow' comprises cash flows from operating activities less capital expenditures.
'Cash conversion' is calculated as last 4 quarters of free cash flow before interest and tax paid (FCFBIT) divided by last 4 quarters of EBITA excluding one-offs.
'Conversion ratio' is calculated as EBITA excluding one-offs divided by gross profit.
'Net debt to EBITDA' is calculated as net debt at period end divided by last 4 quarters of EBITA excluding one-offs plus depreciation.
Q1 2023 results |
2 |
Q1 highlights
Effectively delivering Simplify-Execute-Grow plan
Strong market share gains, revenue growth and gross margin
Broad-based market
share gains
Relative revenue growth
+600 bps in Q1
Double-digit growth in APAC, Germany, LatAm,
EEMENA
Integration well
progressed
Strong momentum in
Consulting
Standout performance in
Career Transition
Headwinds in
Recruitment Solutions
Q1 2023 results |
TCV = total contract value won, in revenue terms |
3 |
Q1 23 financial overview
Revenues
€5,892 mn |
+3% yoy |
+8% reported |
Adj. EPS
€0.72 |
(5)% yoy |
Gross profit
€1,254 mn |
+5% yoy |
21.3% margin |
+20 bps reported |
Balance Sheet
Net debt / EBITDA |
2.7x |
EBITA excl. one-offs
€184 mn
3.1% margin |
(30) bps yoy |
Cash Flow
Cash conversion |
47% |
Q1 2023 results |
4 |
How we win in a dynamic talent market
Market opportunities remain
Flex resilient throughout Q1
Adecco GBU, flex & outplacement volumes, YTD1
Volumes |
YoY trend |
YTD avg. |
|
-2% yoy |
Focused on driving growth, market share
EXAMPLES
Revenue growth % yoy, organic TDA basis
Adecco Group |
Market |
|
Logistics customer
Adecco share gain; only partner offering global capabilities
Divergent trends by region (and sector)
Adecco GBU, flex volumes by region, YTD1 (in bps)
-2o bps |
|||
yoy |
|||
EMEA |
Americas |
APAC |
Total |
Q1 22 |
Q2 22 |
Q3 22 |
Q4 22 |
Q1 23 |
A value-add ecosystem of talent services
Adecco Group gross profit breakdown, Q1 23
Flex |
Perm |
CT |
Outsourcing, Consulting |
Up- & Reskilling |
||||||||||||
Autos customer
Combined strength of Adecco and Akkodis international expertise
Tech sector
Multiple CT wins due to scale and best-in-market proposition
decrease |
increase |
0% |
20% |
40% |
60% |
80% |
100% |
Q1 2023 results |
1 Source: Adecco GBU, from 1 Jan 2023 until 14 Apr 2023 |
5 |
Attachments
Disclaimer
Adecco Group AG published this content on 04 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 May 2023 06:39:17 UTC.