Q2 24 report
Denis Machuel, CEO & Coram Williams, CFO
6 August 2024
Q2 24 highlights
Further share gains of +375 bps at Group level, on top of +775 bps in Q2 23
Robust margins reflect current business mix; firm pricing and disciplined cost management €162 mn G&A savings run-rate delivered, above-target; Q2 G&A expenses -19%
2030 and 2050 net-zero emissions targets approved by SBTi
|
Revenues €5.8 bn |
Gross Profit €1,132 mn |
|
-2%yoy |
19.4% margin |
|
3% |
4% |
3% |
1% |
20.8% |
20.1% |
20.3% |
19.8% |
||||
|
0% |
-2% |
19.6% |
19.4% |
||||||||
|
5,892 |
5,998 |
5,958 |
6,109 |
5,717 |
5,844 |
1,224 |
1,205 |
1,211 |
1,200 |
1,130 |
1,132 |
|
Q1 23 |
Q2 23 |
Q3 23 |
Q4 23 |
Q1 24 |
Q2 24 |
Q1 23 |
Q2 23 |
Q3 23 |
Q4 23 |
Q1 24 |
Q2 24 |
|
Revenues (EUR mn) |
Gross Profit (EUR mn) |
||||||||||
|
% yoy, organic, TDA |
Gross Profit margin |
Quarterly results reflect new company reporting policies, effective Jan 1, 2024
EBITA €179 mn
3.1% margin
|
4.3% |
||||||||||
|
4.0% |
||||||||||
|
3.1% |
3.1% |
3.1% |
||||||||
|
2.8% |
||||||||||
|
184 |
184 |
235 |
264 |
157 |
179 |
||||||||||||||||||
|
Q1 23 |
Q2 23 |
Q3 23 |
Q4 23 |
Q1 24 |
Q2 24 |
||||||||||||||||||
|
EBITA, excl. one-offs (EUR mn) |
|||||||||||||||||||||||
|
EBITA margin, excl. one-offs |
|||||||||||||||||||||||
|
Adj EPS €0.64 < |
-1% yoy CC |
|
< |
3.0x |
|
Net debt/EBITDA |
|
|
Op CF |
€162 mn |
|
Cash conversion< |
84% |
3
Future@Work Reloaded: better, faster execution; improved financial performance
Consistent delivery of Simplify, Execute, Grow plan
- Strong market share gains
- Investing to capture growth, protecting capacity
- €162 million G&A savings, in run-rate terms, delivered mid-24, above ~€150 million target
- Organisation right-sized, move to Shared Service Centres accelerated, procurement tightened
- Operating model adjusted to drive empowerment & accountability
- Value-drivingTech Roadmap activated
- Driving performance through refreshed culture and values
simplify
execute
grow
4
Disciplined execution drives G&A savings above-target
€162 mn G&A savings, in run-rate terms,
delivered mid-24 (vs 2022 baseline)
- Savings ahead of ~€150 mn target, and on a net basis
- 67% from simplifying and consolidating corporate / enabling functions, including shared service centres for finance, HR
- 33% from delayering and reducing duplication in management structures at GBU, country levels
- 12% reduction in G&A FTEs
- €66 mn cut in non-personnel G&A costs
Q2 24 G&A savings -19% (vs 2022 baseline), bringing G&A expenses to 3.4% of revenues
G&A savings breakdown, by area and GBU
(in EUR mn vs 2022)
|
Country |
Corporate, 21 |
|||||
|
structures, 24 |
||||||
|
GBU |
LHH, |
|||||
|
structures, 29 |
||||||
|
45 |
||||||
|
Akkodis, |
||||||
|
24 |
||||||
|
Corporate / |
||||||
|
Enabling |
||||||
|
Functions, 109 |
Adecco, |
|||||
|
72 |
||||||
|
Mid-24 RR |
Mid-24 RR |
Clear plan to sustain G&A expenses <3.5% of revenues p.a.
5
Adecco: solid performance in tough markets, robust margin
Revenues €4.5 bn, -2% yoy
Share of Group 77%
|
4% |
3% |
6% |
6% |
3% |
5% |
4% |
3% |
||
|
1% |
|||||||||
|
-2% |
|||||||||
|
4,250 |
4,504 |
4,608 |
4,738 |
4,447 |
4,613 |
4,622 |
4,766 |
4,368 |
4,522 |
|
Q1 22 |
Q2 22 Q3 22 Q4 22 Q1 23 |
Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 |
|
Revenues (EUR mn) |
% yoy, organic, TDA |
|
EBITA €156 mn, 3.4% margin
Share of Group 67%
|
3.7% |
3.6% |
4.2% |
3.5% |
3.5% |
3.5% |
4.1% |
3.8% |
3.0% |
3.4% |
|
158 |
163 |
193 |
167 |
156 |
160 |
189 |
180 |
132 |
156 |
|
Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 |
|
EBITA, excl. one-offs (EUR mn) |
EBITA margin, excl. one-offs |
|
|
• Relative revenue growth +220 bps |
|
• Flex -2%, Perm -2%, Outsourcing +15%1 |
|
• Retail strong, logistics solid; autos, |
|
manufacturing, IT Tech weak |
|
• Gross margin healthy, pricing firm |
|
• Improved productivity: GP/Selling FTE |
|
+2%, Selling FTEs -4% yoy |
|
Northern Europe, France, Americas |
EBITA margin -10 bps yoy |
|
challenged markets |
Lower volumes |
|
Southern Europe & EEMENA solid |
|
|
Current mix |
|
|
DACH robust |
|
|
APAC strong |
FESCO JV income |
|
• EBITA margin further reflects strong |
|
G&A savings, favourable timing of |
|
FESCO JV income |
|
1 yoy organic |
|
|
Quarterly revenues and EBITA excl. one-offs for 2022 have been restated to reflect the transfer of part of AKKA US to Adecco US effective Jan 1, 2023. Quarterly revenues and EBITA |
6 |
|
margin for 2023 reflect new company reporting policies, effective Jan 1, 2024 |
Adecco: further market share gains
|
Revenues |
Market |
EBITA and EBITA margin |
||||||||
|
share |
excl. one-offs |
|||||||||
|
By Segment |
Q2 24 |
Q2 24 |
Q2 24 |
Q2 24 |
Q2 24 |
Change, |
||||
|
€ mn |
% yoy |
€ mn |
margin |
bps yoy |
||||||
|
France |
1,174 |
-8% |
33 |
2.9% |
(170) |
|||||
|
Northern Europe |
544 |
-11% |
9 |
1.6% |
+20 |
|||||
|
(NE) |
||||||||||
|
DACH |
419 |
+1% |
2 |
0.5% |
+130 |
|||||
|
Southern Europe |
1,170 |
+4% |
69 |
5.8% |
0 |
|||||
|
& EEMENA (SEE) |
||||||||||
|
Americas |
630 |
-5% |
5 |
0.7% |
(40) |
|||||
|
APAC |
585 |
+14% |
38 |
6.6% |
+210 |
|||||
|
Adecco |
4,522 |
-2% |
156 |
3.4% |
(10) |
|||||
- France: strong market headwinds. Manufacturing, logistics subdued. Margin reflects negative operating leverage
- NE: UK&I -12%, Nordics -13%, Belux +1%. Autos, consulting, manufacturing weak
- DACH: Germany +1%. Logistics, IT Tech, retail strong. Switzerland 0%
- SEE: Iberia +10%, EEMENA +7%. Italy 0%. Logistics, F&B, retail strong
- Americas: LatAm +13%, led by Colombia. NAM -14%, temp demand subdued. Calibrated investment in network to drive future growth
- APAC: Japan +11%, India +13%, Asia +7%. Australia & New Zealand +41%, supported by significant government contract
7
Akkodis: strength in Consulting & Solutions
Revenues €898 mn, -2% yoy
Share of Group 15%
|
12% |
|||||||||
|
14% |
14% |
8% |
5% |
||||||
|
3% |
4% |
||||||||
|
8% |
|||||||||
|
6% |
|||||||||
|
4% |
|||||||||
|
-1% |
-3% |
-5% |
-2% |
-2% |
|||||
|
735 |
956 |
974 |
1,002 |
992 |
934 |
907 |
930 |
928 |
898 |
|
Q1 22 |
Q2 22 Q3 22 Q4 22 Q1 23 |
Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 |
|||||||
|
Revenues (EUR mn) |
% yoy, organic, TDA |
Consulting |
North EMEA -6% yoy
South EMEA +5% yoy
North America -14% yoy
APAC +9% yoy
EBITA €44 mn, 4.9% margin
|
Share of Group 19% |
• |
|
7.3% |
8.8% |
• |
||||||||
|
6.7% |
6.5% |
5.7% |
6.2% |
5.8% |
||||||
|
5.2% |
4.9% |
|||||||||
|
4.8% |
||||||||||
|
50 |
62 |
56 |
72 |
48 |
48 |
56 |
82 |
54 |
44 |
• |
|
Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 |
||||||||||
|
EBITA, excl. one-offs (EUR mn) |
EBITA margin, excl. one-offs |
• |
||||||||
EBITA margin -30 bps yoy
Lower volumes• Disciplined cost management
Consulting & Solutions (75% of GBU revenues) +4%; Staffing -17%
EMEA robust: France +5%, led by autos. Spain, Italy strong. NXT (formerly DataRespons) -7%, reflecting tough software development market. Germany -3%, mainly reflecting headwinds in autos
NAM: impacted by continued tech staffing downturn; Solutions +30%1
APAC strong: Japan +7%, led by tech staffing. Australia +9%, with consulting +34%1
EBITA margin reflects seasonality and market challenges in US, Germany, partially offset by good cost discipline
|
1 On an organic basis. |
|
|
Quarterly revenues and EBITA margin for 2023 reflect new company reporting policies, effective Jan 1, 2024 |
|
|
In 2022, AKKA was consolidated 24 Feb; quarterly revenues and EBITA figures include AKKA's contribution, while the organic growth rates yoy are for Modis only. In addition, quarterly revenues and EBITA excl. |
8 |
|
one-offs for 2022 have been restated to reflect the transfer of part of AKKA US to Adecco US effective Jan 1, 2023 |
LHH: weighed by subdued markets and high comparison
Revenues €443 mn, -7% yoy
Share of Group 8%
EBITA €33 mn, 7.5% margin
Share of Group 14%
|
1% |
3% |
0% |
1% |
0% |
0% |
2% |
|||
|
-2% |
|||||||||
|
-5% |
|||||||||
|
-7% |
|||||||||
|
461 |
477 |
462 |
472 |
468 |
468 |
445 |
447 |
440 |
443 |
|
7.5% |
6.5% |
5.6% |
6.8% |
7.6% |
|
3.7% |
34 31 18 26 32 36
8.0% 7.0% 7.3% 7.5%
|
35 |
31 |
32 |
33 |
- RS: continued market headwinds. Gross profit -13% (Q1 -19%); US -17%, modestly improved qoq
- CT&M: healthy given strong comparison, France, Canada solid. Taking share, solid pipeline
|
Q1 22 |
Q2 22 Q3 22 Q4 22 Q1 23 |
Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 |
|||
|
Revenues (EUR mn) |
% yoy, organic, TDA |
||||
|
Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 |
• L&D: Ezra +45%1, pipeline strong. GA |
|||
|
EBITA, excl. one-offs (EUR mn) |
EBITA margin, excl. one-offs |
continues pivot to B2B; Talent Development |
||
|
subdued |
Recruitment Solutions (RS) -13% yoy
Career Transition & Mobility (CT&M) -10% yoy Learning & Development (L&D) -1% yoy1 Pontoon +7% yoy
EBITA margin -10 bps yoy
Lower volumes
Changing mix
Strong cost optimisation
- Pontoon: +7%, led by Direct Sourcing
- EBITA margin reflects lower volumes, changing mix, substantially offset by organisational optimisation, good G&A savings
|
1 yoy organic |
9 |
|
Quarterly revenues and EBITA margin for 2023 reflect new company reporting policies, effective Jan 1, 2024. |
Robust margins reflecting disciplined cost management
Gross profit bridge
(As % of revenues yoy, in bps)
|
+5 |
(20) |
(30) |
(10) |
(15) |
0 |
|
20.7% |
20.8% |
|||||||
|
20.7% |
20.1% |
19.4% |
||||||
|
Q2 23 |
Q2 23 |
FX/ |
Flex. |
Perm. |
Career |
Outs, |
Training, |
Q2 24 |
|
Reclass |
Scope |
Placement |
Placement |
Transition |
Cons |
Up/Re- |
||
|
& Other |
skilling |
|
As % of Group (approx.) |
50% |
15% |
10% |
20% |
5% |
EBITA bridge, excl. one-offs
As % of revenues
+5 (75) +5 +45 +20
|
3.1% |
3.1% |
|
Q2 23 |
FX / |
Gross |
Productivity G&A |
FESCO Q2 24 |
|
Scope |
Margin |
Savings |
JV |
- GP/Selling FTE flat yoy; Selling FTEs -5% yoy
- SG&A expenses -5% yoy, to 16.6% of revenues
- G&A expenses -11% yoy, to 3.4% of revenues
- Company-basedFTEs -6% yoy, -2% qoq
10
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Adecco Group AG published this content on 06 August 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 August 2024 06:50:43 UTC.