Q3 2024 Adecco Group AG Earnings Call Transcript
Key Points
- Adecco Group AG (AHEXF) delivered EUR5.7 billion in revenues, showing resilience despite challenging market conditions.
- The company achieved a robust EBITA margin of 3.3%, supported by strong G&A savings.
- Adecco Group AG (AHEXF) has seen volume trends stabilizing throughout the quarter, particularly in Recruitment Solutions and tech staffing in the US.
- The company continues to gain market share, with a relative revenue growth of 850 basis points since the introduction of the Simplify, Execute, and Grow agenda.
- Adecco Group AG (AHEXF) is advancing its digital transformation by expanding its Global Delivery solution and accelerating AI adoption, enhancing efficiency and productivity.
- Revenues were 5% lower year-on-year on an organic trading days-adjusted basis, reflecting market headwinds.
- The gross margin decreased by 90 basis points year-on-year, impacted by lower volumes and country mix.
- Net debt-to-EBITDA ended the quarter at 3.1 times, indicating high leverage.
- The company faced a high comparison base from Q3 '23, affecting performance, particularly in the DACH region.
- Free cash flow was impacted by timing issues in accounts receivable and payable, with a EUR150 million unfavorable timing impact.
Good day, and welcome to the Adecco Group AG Q3 results 2024 conference call. (Operator Instructions) Finally, I'd like to advise all participants, that this call is being recorded. Thank you.
I'd now like to welcome Benita Barretto, Head of Investor Relations to begin the conference. Benita, over to you.
Thank you. Good morning and thank you to everyone who's joined the lines today. I am Benita Barreto, I'm the group's Head of Investor Relations. And with me, we have the Adecco Group CEO, Denis 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 Denis and the results report.
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