Revenue momentum accelerates, margins strong Results
AD HOC ANNOUNCEMENT pursuant to Art. 53 Listing Rules of SIX Swiss Exchange
Q4 Results HIGHLIGHTS
– Revenues +3% sequentially, +1% yoy organic TDA1, led by Modis +14%
– Gross profit +7% organic yoy; led by Adecco +7% and LHH’s Recruitment Solutions +c.35%
– 20.7% gross profit margin driven by portfolio, favourable mix and pricing
– EBITA excluding one-offs2 Euro 259 million; 4.7% margin, reflecting cost discipline while investing in growth
– Operating income Euro 191 million; Net Income Euro 184 million; Basic EPS Euro 1.11, up 21% yoy
FULL YEAR HIGHLIGHTS
– Revenues +9% yoy organic TDA1; Gross profit +15% organic yoy
– Leading gross profit margin of 20.4%, driven by portfolio, favourable mix and pricing
– EBITA excluding one-offs[2] Euro 953 million; 4.6% margin sector-leading
– Operating income Euro 780 million; Net Income Euro 586 million; Basic EPS Euro 3.62
– Cash flow from operating activities Euro 722 million; cash conversion 83%
– Good strategic delivery: GBU organisation put in place; AKKA acquisition announced; LHH re-brand underway
– Acquisition of majority stake in AKKA completed; good line of sight on Euro 15 million 2022 EBITA synergies
– Proposed dividend per share CHF 2.50, composed of CHF 1.25 gross plus CHF 1.25 from reserves not subject to withholding tax
Alain Dehaze, Adecco Group CEO, commented:
“Good progress has been made in the first year of implementation of our Future@Work strategy.
We have established all three GBUs as Global Leaders, and accelerated our pivot to higher value services, as evidenced by this year’s record gross margin level.
At the GBU level, Modis delivered outstanding performance in 2021, with strong top line growth and margin uplift, providing a strong foundation for the upcoming integration of AKKA.
In LHH, Recruitment Solutions excelled, taking market share in permanent recruitment, while Career Transition navigated lower demand for their services.
Adecco delivered sector-leading profitability through 2021, while continued investment supported improved sequential revenue momentum in the last quarter.
Looking ahead, while recognising ongoing pandemic related challenges, we expect healthy demand for the Group’s services in 2022, and are investing to accelerate sustainable, profitable growth.”
The Adecco Group, Investor Relations Results, +41 (0)44 878 88 88
Unless otherwise noted, all growth rates in this release refer to same period in prior year.
[1] On an organic and trading days adjusted basis.
[2] For further details on the use of non-GAAP measures in this release, refer to the Financial Information section and the Additional Information Section of the 2020 Annual Report results.
Source: The Adecco Group
