Adecco boosts sales at the start of the year

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In particular, the personnel service provider increased sales by around 8 percent to 5.89 billion euros. Adjusted for the exchange rate effect and the number of different working days, organic growth was around 3 percent (prev. year: 5 percent), according to Thursday’s statement.

Gross profit increased by about 9 percent to 1.25 billion euros. The corresponding margin is 21.3 percent (previous year 21.1%; Q4 21.0%). Adecco itself was expecting a first quarter gross margin in line with the fourth quarter of 2022.

Adjusted for one-off effects at the EBITA level, the operating result fell about 1 percent to €184 million. The associated margin was 3.7 percent in the fourth quarter and 3.1 percent, after 3.4 percent a year ago. With what was achieved, Adecco more or less lived up to expectations.

As a result, the company earned 92 million, as in the same period last year. According to CEO Denis Machuel, a “very good” result was achieved in the first quarter and growth was above the market.

The company is generally optimistic about the outlook. The CEO said there are some areas that Adecco Group should continue to focus on while remaining flexible and responsive to market conditions. By April, volumes were resilient. The talent services market remains dynamic. According to the Communiqué, the group is well positioned to gain market share quickly and agile.

Specifically, for the second quarter, the Group expects both gross margin and sales, general and administrative expenses (excluding one-time items) to be at the same level as the first quarter of 2023 as a percentage of sales. As is known, Adecco targets an EBITA margin of around 6 percent in the medium term.

(SDA)

Source :Blick