The Adecco Group: Q4 & Full Year 2022 Results, Fourth Quarter Revenues Up 5% Year Over Year to € 6.212 Billion

ZURICH ,  Feb. 28, 2023 -- The Adecco Group , the world’s leading talent advisory and solutions company, announced the fiscal 2022 fourth quarter and full year 2022 Results.

Q4 HIGHLIGHTS Revenues +13% reported, +5% yoy organic TDA; up in all GBUs Strong return on growth investment plan driving market share gains; relative revenue growth +550 bps in Q4, with improvement of +1,500 bps yoy.  France , DACH, APAC and LatAm clearly outperform

Strong gross margin of 21.0%, supported by portfolio shift, positive mix, and pricing Robust EBITA margin excl. one-offs of 3.7%; mainly reflecting lower benefit from special items, growth investment, a lower contribution from Adecco US, LHH Recruitment Solutions and accretion from AKKA; productivity +2% qoq

Operating income €113 million, reflecting higher amortisation and one-offs, both relating to the AKKA acquisition Basic EPS €0.39; Adjusted EPS €0.76

FULL YEAR HIGHLIGHTS

Revenues +13% reported, +5% yoy organic TDA ; up in all GBUs Strong gross margin of 21.0%, supported by portfolio shift, positive mix, and pricing Robust EBITA margin excl. one-offs of 3.5%, mainly reflecting lower benefit from special items, growth investment, a moderated contribution from LHH and Adecco US and accretion from AKKA

Operating income €547 million, reflecting higher amortisation and one-offs, both relating to the AKKA acquisition Basic EPS €2.05; Adjusted EPS €3.28 AKKA delivers EBITA margin and EPS accretion in year 1; ~€25 million synergies realised Healthy 70% cash conversion maintained in investment phase: Cash Flow from Operating Activities €543 million Simplify, Execute, Grow agenda driving positive momentum: Global Sales restructured;  Ian Lee  appointed to Executive Committee as President, Geographic Regions to ensure local perspectives are represented

Proposed dividend per share  CHF 2.50 , composed of  CHF 1.85  gross plus  CHF 0.65  from reserves not subject to withholding tax Denis Machuel, Adecco Group CEO, commented:

"The Group had a strong finish to 2022 as we continued to drive momentum from our investment plan. We achieved excellent growth in Q4, with Adecco significantly outpacing the market. The newly combined Akkodis business performed well, over-delivering on its synergy target for 2022 and tracking on target for synergy capture for 2023. In LHH, our digital coaching business, Ezra, posted strong growth, and our Career Transition business delivered excellent results as the team successfully captures increasing demand amidst an uptick in corporate restructuring driven by the US technology sector.

Gross margins were strong for the quarter. Our Simplify, Execute, Grow agenda is being progressed across the organisation to accelerate implementation of our existing strategy and improve both operational and financial performance. We are very confident we will achieve the planned cost reduction target. Looking ahead, we are laser focused on driving share gains, with enhanced productivity and profitability, across all our business units this year."

For more information, please visit  Full Press Release.

SOURCE The Adecco Group