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View All NewsAdecco Group revenue rises 4% in Q2, reports progress
The Adecco Group reported revenue rose 4% in the second quarter on an organic basis. Revenue was up across the Zurich, Switzerland-based staffing giant’s global business units — Adecco, LHH and Akkodis.
In addition, Adecco Group noted perm placement revenue was up 36% on an organic basis, while flexible placement revenue rose 1%.
| (€millions) | Q2 2022 | Q2 2021 | % change | % organic change | Q2 2022 (US$millions) |
| Revenue | 5,938 | 5,263 | 13% | 4% | 6,228 |
| Gross profit | 1,254 | 1,057 | 19% | 7% | 1,315 |
| Gross margin | 21.1% | 20.1% | - | - | - |
| Net income | 77 | 145 | -47% | - | 81 |
“The group made progress this quarter in several important areas — the Akkodis integration is fully on track and the combined business delivered healthy growth,” CEO Denis Machuel said. “Adecco improved its market share performance and showed some encouraging signs of turnaround in the US, and the LHH recruitment solutions business and digital ventures including Ezra and Hired continued to perform strongly.”
Machuel formally took over as CEO last month.
Revenue by global business unit
| (€millions) | Q2 2022 | Q2 2021 | % change | % organic change | Q2 2022 (US$millions) |
| Adecco | 4,443 | 4,264 | 4% | 3% | 4,660 |
| LHH | 477 | 456 | 5% | 3% | 500 |
| Akkodis | 1,018 | 543 | 87% | 14% | 1,068 |
In Adecco’s LHH business unit, the company noted Pontoon delivered moderate growth while Hired’s revenue rose 77%. The “career transition and mobility” segment of LHH — which includes outplacement — saw revenue fall 31% in the second quarter.
Looking at Akkodis — formed from the combination of Modis and newly acquired Akka — revenue rose 14%.
Revenue at Adecco, the company’s largest business unit, rose 3% in the second quarter with strongest growth in Asia Pacific.
The company noted Adecco’s North America revenue fell 5% in the second quarter. In Adecco US operations, a turnaround plan is in place, and the company noted revenue momentum improved during the second quarter.
In Latin America, Adecco revenue fell 1% because of legislation in Mexico that prohibits flexible placement services. The legislation came into force in September 2021. Excluding Mexico, Latin American revenue rose in double digits.
Adecco revenue by geography
| (€millions) | Q2 2022 | Q2 2021 | % change | % organic change | Q2 2022 (US$millions) |
| France | 1,253 | 1,189 | 5% | 4% | 1,314 |
| Northern Europe | 604 | 645 | -6% | -5% | 634 |
| Germany, Switzerland, Austria | 377 | 364 | 3% | 1% | 395 |
| Southern Europe, Eastern Europe, Middle East, Africa | 1,031 | 986 | 5% | 6% | 1,081 |
| Americas | 648 | 614 | 6% | -4% | 680 |
| Asia Pacific | 530 | 466 | 14% | 14% | 556 |
Globally, flexible placement revenue rose 1% on an organic basis.
Revenue by service line
| (€millions) | Q2 2022 | Q2 2021 | % change | % organic | Q2 2022 (US$millions) |
| Flexible placement | 4,519 | 4,352 | 4% | 1% | 4,740 |
| Permanent placement | 215 | 151 | 42% | 36% | 226 |
| Career transition | 65 | 80 | -19% | 32% | 68 |
| Outsourcing, consulting and other services | 1,045 | 596 | 76% | 22% | 1,096 |
| Training, upskilling and reskilling | 94 | 84 | 12% | 6% | 99 |
Guidance
The company noted business momentum indicated healthy demand for talent services. Third-quarter gross margin is expected to trend the same level as in the second quarter.
Share price and market cap
Shares in Adecco closed down 3.32% to 32.00 Swiss francs (US$33.35) today in Europe and set a new 52-week low when they reached 31.20 Swiss francs (US$32.51) during the tradition session, according to FT.com. The company had a market cap of 5.59 billion Swiss francs (US$5.83 billion).