Adecco: shares flat after strategy presentation
(CercleFinance.com) - Shares in Swiss staffing group Adecco were flat on Tuesday after the company presented a new brand-driven organisation structure to improve focus and reduce complexity.
At its virtual Capital Markets Day today, the company unveiled its "Future@Work" plan that will focus on three distinct business units (Adecco, Talent Solutions and Modis), while accelerating digitalisation.
"Adecco(...) targets accelerating organic growth by gaining market share in the Adecco brand, and investing to increase mix to faster-growth Talent Solutions and Modis," analysts at UBS commented in a reaction note.
The company also said that it targets a higher EBITA margin "corridor" of 3%-6%, compared to 2.5%-5% in the previous economic cycle, driven by further productivity gains and mix shift towards higher margin businesses.
However, investors' reaction was muted, with Adecco shares edging up just 0.1% in late morning trading, in line with a 0.1% gain in Zurich's SMI index.
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