Employment agency: Adecco increased profits in fourth quarter

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Adecco Group’s sales fell by 2 percent to 6.1 billion euros in October-December 2023, the company announced on Thursday. Taking into account exchange rate effects and different working day numbers, organic growth was only 1 percent (previous year: 5%). Adecco grew by 4 percent and 3 percent, respectively, on an adjusted basis in the second and third quarters of 2023.

The operating result at the EBITDA level, excluding one-off effects, increased by 16 percent to 264 million euros, despite the decline in sales in the last quarter. The corresponding margin was 4.3 percent, after 4.0 percent in the third quarter and 3.7 percent in the same period last year.

As a result, the group earned 68 million; This is approximately 6 percent more than the previous year. Adecco also announced that the synergies resulting from the acquisition of Akka exceeded the target value of over 60 million euros. “Adecco managed to gain market share for the sixth consecutive quarter and at the same time increase its margin,” CEO Denis Machuel was quoted as saying in the statement.

Adecco now wants to pay its shareholders a dividend of 2.50 francs per share for 2023, as it did in the previous year. Analysts’ expectations (AWP consensus) were exceeded in terms of sales, but not in terms of net profit. It was estimated that the dividend would be exactly at the level currently announced.

Adecco management expects further market share gains in the first quarter of 2024. However, business volumes are expected to be slightly lower than in the fourth quarter of 2023, while gross margins and sales expenses are expected to remain approximately the same. For Adecco, the first quarter is a period when EBITDA margin is lower due to seasonal reasons. (SDA)

Source :Blick