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View All NewsAdecco Q1 revenue up 2% on adjusted basis, forecasts bounce-back in next quarter
First-quarter revenue at The Adecco Group rose 2% on an organic basis when adjusted for trading days. The staffing giant noted some businesses are back to pre-pandemic levels. Looking ahead, the company forecast a bounce-back in the second quarter, noting business volumes increased in April.
Revenue growth improved throughout the first quarter with combined revenue in January and February down 2% year over year while March revenue was up 9%.
“Despite the ongoing challenges from Covid-19, we returned to modest revenue growth, and several businesses are now back above 2019 levels,” CEO Alain Dehaze said. “Positive mix development, pricing and cost discipline drove broad-based margin improvement.”
| (€millions) | Q1 2021 | Q1 2020 | % change | % organic change | % organic change, business days adjusted | Q1 2021 (US$millions) |
| Revenue | € 4,971 | € 5,139 | -3% | 1% | 2% | $5,835 |
| Gross profit | € 998 | € 994 | 0% | 5% | - | $1,171 |
| Gross margin | 20.1% | 19.3% | - | - | - | - |
| Net income | € 124 | (€ 348) | nm | - | - | $146 |
Organic growth excludes the impact of currency, acquisitions and divestitures.
Revenue by geography
| (€millions) | Q1 2021 | Q1 2020 | % change | % organic change | % organic, business days adjusted | Q1 2021 (US$millions) |
| Adecco France | € 1,040 | € 1,051 | -1% | -1% | 0% | $1,221 |
| Adecco Northern Europe | € 641 | € 657 | -3% | -1% | 0% | $752 |
| Adecco DACH* | € 341 | € 350 | -3% | -2% | 0% | $400 |
| Adecco Southern Europe and EEMENA** | € 908 | € 825 | 10% | 11% | 13% | $1,066 |
| Adecco Americas | € 611 | € 693 | -12% | -2% | 0% | $717 |
| Adecco APAC | € 466 | € 492 | -5% | 0% | -2% | $547 |
| Talent Solutions | € 446 | € 476 | -6% | 0% | 0% | $524 |
| Modis | € 518 | € 595 | -13% | -4% | -3% | $608 |
Adecco Americas revenue was flat on an organic basis when adjusted for trading days. The company noted it has lower exposure to faster-growing areas of the economy such as logistics and transportation and was also affected by reduced demand in automotive.
In the company’s talent solutions business, revenue at LHH (formerly Lee Hecht Harrison) rose by 7% on an organic basis. General Assembly revenue rose 1% organically. US professional recruitment revenue was flat. Talent solutions also includes Pontoon and Hired.
*DACH refers to Germany, Austria and Switzerland
**EEMENA refers to Eastern Europe, the Middle East and Africa
Revenue by service line
| (€millions) | Q1 2021 | Q1 2020 | % change | % organic | Q1 2021 (US$millions) |
| Flexible placement | € 4,088 | € 4,268 | -4% | 0% | $4,798 |
| Permanent placement | € 117 | € 137 | -15% | -11% | $137 |
| Career transition | € 94 | € 95 | -1% | 4% | $110 |
| Outsourcing, consulting and other services | € 593 | € 574 | 3% | 7% | $696 |
| Training, upskilling and reskilling | € 79 | € 65 | 23% | 28% | $93 |
Guidance
Business volume in April indicates a gradual sequential improvement as vaccination campaigns accelerate and Covid-19 restrictions are lifted. Adecco expects a bounce-back in revenue during the second quarter, but uncertainties remain given the pandemic.
Share price and market cap
Shares in Adecco closed at 59.18 Swiss francs (US$64.85), 11.72% below their 52-week high; the company had a market cap of 10.18 billion Swiss francs (US$11.16 billion), according to FT.com.