Q4 2024 Adecco Group AG Earnings Call Transcript
Key Points
- Adecco Group AG (AHEXF) achieved a relative revenue growth of 200 basis points in 2024, demonstrating its ability to gain market share despite challenging market conditions.
- The company exceeded its G&A savings target, delivering EUR174 million net of inflation by year-end, surpassing the original EUR150 million run rate target.
- Adecco Group AG (AHEXF) delivered strong cash generation, reflected in a 109% cash conversion ratio, significantly improved from 63% in the prior year.
- The company is accelerating the adoption of AI technologies to revolutionize the recruitment process and build a competitive edge, with strategic partnerships with Salesforce, Bullhorn, and Microsoft.
- Adecco Group AG (AHEXF) has updated its dividend policy to accelerate deleveraging and increase financial flexibility, aiming for a net debt-to-EBITDA ratio at or below 1.5 times by the end of 2027.
- Revenues decreased by 3% year-on-year on an organic trading days adjusted basis to EUR23.1 billion, with gross profit nearly EUR4.5 billion, 7% lower year-on-year.
- The EBITA margin at 3.1% was 50 basis points lower year-on-year, reflecting challenging market conditions and lower volumes.
- The tech sector downturn continued to impact Akkodis, with revenues 4% lower and an EBITA margin of 5.5%, mainly reflecting this headwind.
- LHH's revenues were 6% lower, weighed by challenging markets and a high comparison in career transition, with an EBITA margin of 6.3%.
- The macroeconomic and geopolitical environment has been unfavorable for longer than expected, preventing the group from deleveraging under the current dividend policy.
(video playing)
Good day, and welcome to the Adecco Group Q4 and full-year 2024 results conference call. (Operator Instructions) And finally, I would like to advise all participants that this call is being recorded. Thank you.
I'd now like to welcome Benita Barretto, Adecco Group AG, Head of Investor Relations, to begin the conference. Over to you.
Good morning. Thank you for joining the Adecco Group's conference call today. I'm Benita Barretto, the group's Head of Investor Relations and with me are the Adecco Group's CEO, Danny Machuel; and CFO, Coram Williams.
Before we begin, we want to draw your attention to the disclaimer on slide 2. Today's presentation will reference GAAP and non-GAAP financial results and operating metrics. This conference call will include forward-looking statements. These statements are based on assumptions as of today and are therefore subject to risks and uncertainties.
Let me now hand over to Denny for his opening remarks.
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