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View All NewsAdecco global revenue up 4% organically as North America revenue falls
Adecco, the world’s largest staffing firm, reported revenue rose 4% on an organic basis, which excludes the impact of currencies, acquisitions and divestitures. When also adjusting for the number of business days in the quarter, revenue rose 3%.
Permanent placement revenue rose 9% on an organic basis.
| (€millions) | Q2 2016 | Q2 2015 | % growth | % on an organic basis | Q2 2016 (USD$millions) |
| Revenue | € 5,696 | € 5,582 | 2% | 4% | $6,313 |
| Gross profit | € 1,071 | € 1,041 | 3% | 5% | $1,187 |
| Gross margin | 18.8% | 18.7% | |||
| Net income/loss | € 190 | € 178 | 7% | $211 |
By region, North American revenue fell 1% on an organic basis while the biggest percent increases in organic revenue were in Iberia and the Adecco’s “rest of world” category, which includes Australia, New Zealand, Latin America, Eastern Europe, India and elsewhere.
Lee Hecht Harrison revenue was flat on an organic basis. However, revenue rose 6% in constant currency with the acquisition of Penna Consulting.
Quote
“We maintained our price discipline, costs remained under control and we generated strong cash flow from operating activities,” CEO Alain Dehaze said. “We are making progress in implementing our strategy and strengthening our portfolio, positioning us to drive strong performance across our business.”
Revenue by segment
| (€millions) | Q2 2016 | Q2 2015 | % growth | % on an organic basis | Q2 2016 (USD$millions) |
| France | € 1,261 | € 1,221 | 3% | 3% | $1,398 |
| North America | € 1,134 | € 1,186 | -4% | -1% | $1,257 |
| UK & Ireland | € 571 | € 564 | 1% | 6% | $633 |
| Germany & Austria | € 553 | € 544 | 2% | 3% | $613 |
| Benelux and Nordics | € 473 | € 450 | 5% | 6% | $524 |
| Italy | € 374 | € 344 | 9% | 9% | $414 |
| Japan | € 312 | € 281 | 11% | 4% | $346 |
| Iberia | € 246 | € 222 | 11% | 11% | $273 |
| Rest of world | € 661 | € 662 | 0% | 12% | $733 |
| Lee Hecht Harrison | € 111 | € 108 | 2% | 0% | $123 |
Revenue by business line
| (€millions) | Q2 2016 | Q2 2015 | % growth | % constant currency | Q2 2016 (USD$millions) |
| General staffing | |||||
| Office | € 1,368 | € 1,332 | 3% | 6% | $1,516 |
| Industrial | € 2,877 | € 2,818 | 2% | 4% | $3,188 |
| Professional staffing | |||||
| Information technology | € 662 | € 653 | 1% | 6% | $734 |
| Engineering & technical | € 273 | € 286 | -5% | -2% | $303 |
| Finance & legal | € 235 | € 227 | 3% | 7% | $260 |
| Medical & science | € 115 | € 104 | 11% | 13% | $127 |
| Solutions | |||||
| Career Transition & Talent Development* | € 111 | € 108 | 2% | 6% | $123 |
| BPO* | € 55 | € 54 | 2% | 5% | $61 |
| *BPO includes managed services programs (MSP), recruitment process outsourcing (RPO) and vendor management systems (VMS). | |||||
All revenue changes in below country notes are reported on an organic basis:
France
- Revenue increased by 3% in general staffing.
- Revenue grew by 10% in professional staffing.
- Revenue growth continued to be good in construction and very strong in automotive, while strikes and bad weather had a negative impact on growth in retail, manufacturing and logistics.
North America
- General staffing revenue declined by 3%. Revenue declined by 4% in industrial and by 1% in office.
- Professional staffing revenue rose 1% with growth of 22% in medical & science and 10% in finance & legal, and declines of 5% in IT and 7% in engineering & technical.
- Permanent placement revenue in North America rose 5%.
UK & Ireland
- Professional staffing revenue rose 4%. Revenue rose by 6% in IT, partially offset by a 3% decline in finance & legal.
- General staffing revenue rose 9%.
Germany, Austria, Switzerland
- In Germany & Austria, revenue fell 1% adjusted for trading days, as a decline in automotive was partially offset by growth in manufacturing.
- In Switzerland, revenue declined by 4% adjusted for trading days, negatively impacted by reductions in the export-related and medical sectors.
Benelux and Nordics
- Revenue rose 6% or 2% adjusted for trading days. In the Nordics, revenues were up 4% adjusted for trading days. Norway returned to growth after six quarters of decline and growth also accelerated strongly in Denmark and in Finland.
- Revenue in Benelux fell 1% adjusted for trading days.
Rest of world
- Revenue rose 12% in Australia & New Zealand; 7% in Latin America; 16% in Eastern Europe & the Middle East and north Africa; 7% in Asia and 24% in India.
Share price and market cap
Shares in Adecco closed up 2.5% to 56.05 Swiss francs. The company had a market cap of 9.61 billion Swiss francs, according to Google.