The following is a summary of the Adecco Group AG (AHEXY) Q4 2023 Earnings Call Transcript:
Financial Performance:
In 2023, Adecco's revenues showed a 3% annual increase, reaching approximately €24 billion, gross profit was €5 billion with a 1% increase, and EBITA increased 8% to €867 million.
Adjusted EPS was €2.99, 9% lower than the previous year due to higher tax rates and lower net income.
Adecco Group reported Q4 revenues of €6.1 billion, up 1% year-on-year on a trading day adjusted basis. EBITA was €264 million, up 20% year-on-year with an EBITA margin of 4.3%.
In Q4, the group reported an adjusted EPS of $0.75, a 1% decline year-on-year.
Business Progress:
Adecco increased market share in every quarter. It reported growth primarily in logistics and autos across the globe. Major growth was seen in Germany, the APAC region, and Latin America. Despite a decline in North America, EBITA margin improved.
Strategic partnerships were announced with companies like Headspace and a long-standing relationship with a global beverages company was leveraged to increase share by 30%.
Success was seen in the 'simplify, execute, and grow' agenda which saw cost-saving measures, improved procurement policies, shifts to offshore shared service centers, improved customer satisfaction, and expansion in MSP.
Adecco plans for disciplined cost management, aiming to deliver €150 million savings run rate by mid-2024 and manage its total cost growth to align with expected revenue growth. One-off costs are expected to decrease aiding in free cash flow.
More details: Adecco Group AG Unsponsored ADR IR
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