Adecco: growth continues to decelerate
(CercleFinance.com) - Adecco's like-for-like sales growth continued to slow in Q2, with its margins narrowing.
The Swiss temporary work group's publication therefore came in slightly below the consensus.
On a like-for-like basis adjusted for calendar effects, Q2 sales increased by 4% to 6.05 billion euros. However, sales growth reached 6% in Q1 and 7% in Q4 2017. In Q2, business in North America resumed growth. Meanwhile, Adecco's largest market, France, also remains dynamic (+8%), although the trend is slowing relative to Q1 (+10%), and this has not prevented a decline in its margins.
The adjusted operating margin fell by 30 basis points to 4.5%, which included "strategic investments" (especially in order to "digitise" the group) which "cost" 30 basis points. Net income, group share, fell 11% to 170 million euros, down 18% over H1 to 300 million euros.
In terms of its outlook, Adecco reports that adjusted organic growth reached 4% in both June and July, the first month of Q3.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The Swiss temporary work group's publication therefore came in slightly below the consensus.
On a like-for-like basis adjusted for calendar effects, Q2 sales increased by 4% to 6.05 billion euros. However, sales growth reached 6% in Q1 and 7% in Q4 2017. In Q2, business in North America resumed growth. Meanwhile, Adecco's largest market, France, also remains dynamic (+8%), although the trend is slowing relative to Q1 (+10%), and this has not prevented a decline in its margins.
The adjusted operating margin fell by 30 basis points to 4.5%, which included "strategic investments" (especially in order to "digitise" the group) which "cost" 30 basis points. Net income, group share, fell 11% to 170 million euros, down 18% over H1 to 300 million euros.
In terms of its outlook, Adecco reports that adjusted organic growth reached 4% in both June and July, the first month of Q3.
Copyright (c) 2018 CercleFinance.com. All rights reserved.