The earnings call reveals a company navigating challenging market conditions with a strategic focus on market share gains, cost savings, and technological advancements. Despite these efforts, significant revenue declines in key segments and regions highlight ongoing challenges. The focus on deleveraging and a revised dividend policy indicates a cautious approach to financial stability.
Company Guidance
During the Adecco Group's Q4 and Full Year 2024 Results Conference Call, the company provided extensive insights into its financial performance and future guidance. The group reported a 3% year-on-year decline in revenues to €23.1 billion, with a corresponding 7% decrease in gross profit to nearly €4.5 billion. The EBITA margin was reported at 3.1%, reflecting a 50 basis points decline from the previous year, attributed to substantial G&A savings and agile capacity management. The company highlighted its strategic focus on market share growth, achieving a relative revenue growth of 980 basis points since Q4 2022, with a 200 basis point share gain in 2024 compared to key competitors. Adecco's client and candidate Net Promoter Scores (NPS) each increased by 2 points, indicating improved customer satisfaction. The group also achieved €174 million in G&A savings, surpassing its original target. Looking ahead, Adecco aims to maintain its strategic focus on expanding its Managed Service Provider (MSP) offerings, advancing AI tools, and managing its capacity with agility, with a targeted net debt-to-EBITDA ratio of 1.5x or below by the end of 2027.
Market Share and G&A Savings Success
The Adecco Group achieved a relative revenue growth of 980 basis points since Q4 2022, with a 200 basis point share gain in 2024. Additionally, they delivered €174 million in G&A savings, surpassing the €150 million target.
Strong Cash Flow Performance
Cash flow from operating activities was €491 million in Q4, an increase of €174 million year-on-year. The full-year cash conversion ratio was 109%, a significant improvement from 63% in the prior year.
AI and Digital Strategy Advancements
The group is leveraging AI technologies to improve recruiter efficiency and customer experience, partnering with Salesforce and Microsoft to enhance their digital capabilities.
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Adecco Group AG (CH:ADEN) Earnings, Revenues Date & History
The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
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CH:ADEN Earnings-Related Price Changes
Report Date
Price 1 Day Before
Price 1 Day After
Percentage Change
Feb 26, 2025
CHF21.72
CHF24.39
+12.29%
Nov 05, 2024
CHF25.77
CHF24.24
-5.94%
Aug 06, 2024
CHF26.55
CHF26.63
+0.30%
May 07, 2024
CHF30.77
CHF30.58
-0.62%
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
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FAQ
When does Adecco Group AG (CH:ADEN) report earnings?
Adecco Group AG (CH:ADEN) is schdueled to report earning on May 08, 2025, TBA Not Confirmed.
What is Adecco Group AG (CH:ADEN) earnings time?
Adecco Group AG (CH:ADEN) earnings time is at May 08, 2025, TBA Not Confirmed.
Where can I see when companies are reporting earnings?
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