First-quarter revenue at Adecco, the world’s largest staffing firm, rose 4% on an organic basis. However, gross margin edged down 10 basis points.

In North America, revenue rose 7%, up 1% in constant currency, to €1.15 billion (US$1.30 billion).

Adecco expects to close its acquisition of Penna Consulting Plc today, May 10. Adecco in March agreed to make a recommended cash offer of 365 pence per share, taking the total consideration to approximately £105 million, for the entire ordinary share capital of the UK recruitment firm.

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“In the first quarter, our colleagues and associates at the Adecco Group delivered a good performance,” said Adecco CEO Alain Dehaze. “Revenues continued the trend of modest growth seen during 2015. Our relative revenue growth compared to our main peers improved and we are back in line with the market growth in France, our largest market. We maintained our price discipline and costs remained under control, with 4% organic revenue growth being supported by a 3% increase in FTE employees.”

Dehaze continued, “In March and April combined, revenue growth was 3% organically and adjusted for trading days. We remain focused on driving profitable growth across our business, supported by the implementation of our strategic priorities. We are delighted that today we will welcome new colleagues to the Adecco Group following the completion of the acquisition of Penna, which further reinforces our leading global position in career transition, talent development and recruitment solutions.”

Revenue by segment

Revenue by business line

*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, which excludes impact of currency, acquisitions and divestitures.

France

• Revenue rose 7%, back in-line with the market growth in France
• Revenue increased by 7% in general staffing, which accounts for more than 90% of revenue, and declined by 2% in professional staffing.
• Revenue growth continued in construction, remained very strong in automotive, and accelerated in retail and in logistics.
• Permanent placement revenue rose 31%

North America

• Revenue rose 1%
• General staffing, which accounts for approximately half of revenue, declined by 2%
• Industrial revenue growth was flat while office revenue declined by 6%
• Professional staffing revenue rose 4%, with growth of 29% in medical and science, 15% in finance and legal and 2% in IT, while engineering and technical declined by 10%
• Permanent placement revenue in North America rose 9%

UK and Ireland

• Revenue was flat
• Approximately two-thirds of revenue comes from professional staffing, which fell 6%
• Revenues decreased by 6% in finance and legal and by 5% in IT
• In general staffing, revenue rose 12%
• Permanent placement revenue rose 1%

Germany, Austria, Switzerland

• Revenue fell 2%
• In Germany and Austria, revenue was flat, as a decline in automotive was offset by growth in sectors such as manufacturing and chemicals
• In Switzerland, revenue fell 8%, negatively impacted by reductions in the export-related and medical sectors

Benelux and Nordics

• Revenue increased 5%
• Revenue in Benelux rose 10% with good growth in all three countries in the region
• In the Nordics, revenue fell1%, with continued growth in Sweden and a sequential improvement in Norway

Italy

• Revenue rose 9% against a strong comparison base

Japan

• Revenue rose 2%

Iberia

• Revenue rose 9% against a strong comparison base

Rest of World

• Revenue rose 13%
• Revenue growth was 4% in Australia and New Zealand, 13% in Latin America, 19% in Eastern Europe and MENA, 8% in Asia and 23% in India.

Lee Hecht Harrison

• In Adecco’s career transition and talent development business, revenue rose 1% organically, up 11% in constant currency, following the acquisition of Knightsbridge in the second quarter of 2015. Good revenue growth in the US was largely offset by a decline in France, respectively Lee Hecht Harrison’s largest and second-largest businesses by revenue