The Adecco Group reported a Q2 2024 revenue of €5.84 billion, down 2% on an organic and trading days adjusted basis, reflecting market challenges. Despite a 5% drop in gross profit, cost savings measures helped maintain a stable EBITA margin. CEO Denis Machuel highlighted market share gains and robust performances in APAC and specific European regions. Adecco outperformed competitors despite a tough market, with strong growth in consulting and outsourcing services. The group's determination to continue gaining market share and rigorous cost management positions it well for future market improvements.



Zurich, Switzerland, August 6, 2024 – The Adecco Group (ADEN) has announced its financial results for the second quarter ended June 30, 2024. Despite facing a challenging market environment, the Group reported revenues of €5.84 billion, a decrease of 2% on an organic and trading days adjusted (TDA) basis. The company continued to gain market share and achieved significant cost savings.

Key Financial Highlights:

• Revenues: €5.84 billion, down 2% organically and 3% on a reported basis.


• Gross Profit: €1.13 billion, a 5% decrease on an organic basis.


• Gross Margin: 19.4%, a decline of 70 basis points year-over-year.


• EBITA (excluding one-offs): €179 million, stable year-over-year in constant currency terms.


• Net Income: €58 million, a 6% decrease year-over-year in constant currency terms.


• SG&A Expenses (excluding one-offs): €969 million, a 5% reduction organically, improving by 50 basis points as a percentage of revenues.


• Operating Cash Flow: €162 million, an increase of €82 million year-over-year.


• Free Cash Flow: €128 million, an increase of €100 million year-over-year.

Performance by Global Business Unit:

• Adecco: Revenues of €4.52 billion, down 2% organically. Strong growth in the APAC region (up 14%) and solid performance in Southern Europe & EEMENA (up 4%) were offset by declines in Northern Europe (down 11%) and the Americas (down 5%).


• Akkodis: Revenues of €898 million, down 2% organically. The segment faced challenges due to the ongoing tech staffing market downturn, with Consulting & Solutions up 4% while Staffing declined 17%.


• LHH: Revenues of €443 million, down 7% organically. Recruitment Solutions saw a 13% decrease, while Career Transition revenues were down 10%.

CEO Commentary: Denis Machuel, CEO of Adecco Group, commented: "The Group gained a further 375 basis points of market share in the second quarter, building on the 775 basis points gained in the prior year period. While revenues eased on an organic basis due to continued market challenges, our pricing remained firm. We delivered above-target G&A cost savings, supporting a robust EBITA margin, and significantly improved our cash flow through effective working capital management. Despite a tough market, Adecco outperformed its peers, with Akkodis showing healthy growth in Consulting & Solutions and strong performances in LHH's Pontoon and EZRA divisions. Our strategic positioning and disciplined cost management will enable us to swiftly capitalize on improvements in the labor markets."

Regional Highlights:

• France: Revenues decreased by 8%, reflecting broad-based softness in manufacturing and logistics sectors.


• Northern Europe: Revenues declined by 11%, with notable decreases in the UK & Ireland (down 12%) and the Nordics (down 13%).


• DACH: Germany saw a modest revenue increase of 1%, with strong performances in logistics, IT Tech, and retail sectors.


• Southern Europe & EEMENA: Revenues grew by 4%, driven by strong performance in logistics, F&B, and retail sectors.


• Americas: Revenues were down by 5%, with North America facing continued market headwinds in flexible placement.


• APAC: Revenues grew by 14%, significantly ahead of the market, driven by robust growth in Japan (up 11%) and Australia & New Zealand (up 41%).

Outlook: The Adecco Group expects the current weak hiring trends to persist into the third quarter of 2024. The Group aims to maintain G&A savings and is well-positioned to capture growth opportunities and market share as labor markets improve. The gross margin is expected to improve sequentially in Q3 2024, with a modest reduction in SG&A expenses excluding one-offs relative to Q2 2024.

Market Reaction: In response to the results, Adecco Group shares last traded at CHF 28.36 (€30.42), up 1.94% on the day and 3.96% above its 52-week low, reflecting investor confidence in the company's resilient performance and future prospects.

About Adecco Group:

The Adecco Group is the world's leading talent company, committed to making the future work for everyone. Operating through three global business units – Adecco, Akkodis, and LHH – across 60 countries, the Group enables sustainable and lifelong employability for individuals, delivers digital and engineering solutions to power the Smart Industry transformation, and empowers organizations to optimize their workforces.