0QNM Adecco Group Ag

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2nd Quarter 2019 Results 
 
STRONG EXECUTION IN Q2 2019 
 
Further underlying EBITA margin improvement, as GrowTogether delivers results 
 
Summary and highlights 
 
 · Revenues down 2% year-on-year, and down 3% organically1 and trading days 
    adjusted (TDA), reflecting market conditions, in particular slower growth in 
    Europe. Revenues in June down 3% organically and TDA, in-line with Q2 
 · Strong improvement in gross margin, up 70 bps yoy to 19.0%, driven by focus 
    on pricing and business mix 
 · EBITA2 margin excluding one-offs3 4.5%, flat yoy; underlying up 20 bps yoy 
 · GrowTogether transformation programme drives further productivity improvement 
    and enhances customer value 
 · Strong balance sheet with Net Debt/EBITDA excluding one-offs 1.2x (improved 
    by 0.2x yoy); cash conversion 84% and improved DSO 
 
"The Group's Q2 2019 results demonstrate further strong execution of our 
strategy. Despite the external headwinds, we continued to deliver consistent 
underlying margin expansion and improved productivity. We increased gross 
margins for the fourth consecutive quarter, supported by a focus on higher value 
solutions, the roll-out of value-based pricing tools and tighter labour markets. 
 
Organic revenue growth slowed in the quarter, driven mainly by Europe. This 
partly reflected robust growth in the same period of the prior year, and also 
continued weakness in automotive and manufacturing sectors in many European 
economies. We see the year-on-year comparison base becoming less challenging as 
the second half progresses, given the slowdown in the European economy in the 
late summer of 2018. 
 
GrowTogether supported a further improvement in FTE productivity in Q2 and we 
remain on track to deliver the targeted incremental savings of EUR 70 million in 
2019. 
 
Increased collaboration between our brands has created new opportunities to 
deliver improved solutions to our customers, with positive examples in Q2. 
Integrating General Assembly's up/reskilling solutions into the Lee Hecht 
Harrison is enabling new client business. Additionally, we launched the Modis 
Academy in the US; an innovative solution to address persistent talent shortages 
in high-demand tech skills. 
 
I thank all of our colleagues for their engagement and hard work as we continue 
to Perform, Transform and Innovate, to strengthen the Adecco Group's leadership 
and to enable the success of our clients and candidates in the evolving world of 
work." 
 
Alain Dehaze, Group Chief Executive Officer 
 
1Organic growth is a non-US GAAP measure and excludes the impact of currency, 
acquisitions and divestitures. 
 
2EBITA is a non-US GAAP measure and refers to operating income before 
amortisation and impairment of goodwill and intangible assets. 
 
3In Q2 2019, EBITA included one-offs of EUR 24 million; in Q2 2018, EBITA 
included one-offs of EUR 11 million. 
 
Note to Editors 
 
Additional information is provided under the following links: 
 
 · The Adecco Group Company Profile 
 · The Adecco Group ??" our brands video 
 
Press Release (PDF) 
 
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(END) Dow Jones Newswires

August 08, 2019 01:02 ET (05:02 GMT)

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