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View All NewsQ2 revenue at Adecco up 29% as Covid recovery continues
Second-quarter revenue at The Adecco Group rose 29% on an organic basis when adjusted for business days while Americas revenue rose 19%. Gross margin at the Switzerland-based global staffing firm improved.
“The second quarter performance was strong with positive momentum throughout, particularly in permanent placement,” CEO Alain Dehaze said. “Revenues are now 5% below pre-crisis levels on an underlying basis, while the group’s gross profit is now broadly in line with pre-crisis levels.”
Adecco noted revenue growth in the second quarter was influenced by the comparison base of the second quarter, which suffered the full impact of the Covid-19 pandemic. The company reported revenue growth momentum improved modestly compared to the first quarter of this year.
Adecco also announced the acquisition of Akka Technologies, a global engineering and consulting firm based in Brussels, Belgium, at an enterprise value of €2.0 billion (US$2.36 billion).
| (€millions) | Q2 2021 | Q2 2020 | % change | % organic change, business days adjusted | Q2 2021 (US$millions) |
| Revenue | € 5,263 | € 4,181 | 26% | 29% | $6,265 |
| Gross profit | € 1,057 | € 786 | 34% | 39% | $1,258 |
| Gross margin | 20.1% | 18.8% | - | - | - |
| Net income | € 145 | € 21 | nm | - | $173 |
“Our businesses continued to execute well, with margin improvement supported by mix, pricing and strong productivity,” Dehaze said. “At the same time, the group has begun to extend its investment in sales to drive growth.”
Revenue by geography
| (€millions) | Q2 2021 | Q2 2020 | % change | % organic, business days adjusted | Q2 2021 (US$millions) |
| France | € 1,189 | € 740 | 61% | 61% | $1,415 |
| Northern Europe | € 645 | € 523 | 23% | 20% | $768 |
| Germany, Switzerland, Austria | € 364 | € 275 | 32% | 33% | $433 |
| Eastern Europe, Middle East, Africa | € 986 | € 705 | 40% | 39% | $1,174 |
| Americas | € 614 | € 549 | 12% | 19% | $731 |
| Asia Pacific | € 466 | € 467 | 0% | 5% | $555 |
| Talent Solutions | € 456 | € 389 | 17% | 21% | $543 |
| Modis | € 543 | € 533 | 2% | 12% | $646 |
Revenue in France jumped 61% year over year on an organic basis, adjusted for business days.
Americas revenue rose 19% on an organic basis, adjusted for business days.
“The US faced headwinds from lowered workforce availability, contract turnover and subdued activity in the automotive sector,” the company reported. It also noted measures to improve US performance are underway. Adecco said it’s putting in place an operating model with central hubs and digital channels as well as refocusing its sales force on higher-growth sectors.
Meanwhile, Adecco outplacement division LHH saw revenue rise 3%. At Pontoon, Adecco’s MSP and RPO business, revenue rose 9%. LHH and Pontoon are part of the company’s “talent solutions” segment.
Revenue by service line
| (€millions) | Q2 2021 | Q2 2020 | % change | % organic (not trading days adjusted) | Q2 2021 (US$millions) |
| Flexible placement | € 4,352 | € 3,427 | 27% | 30% | $5,181 |
| Permanent placement | € 151 | € 84 | 81% | 88% | $180 |
| Career transition | € 80 | € 89 | -10% | -7% | $95 |
| Outsourcing, consulting and other services | € 596 | € 532 | 12% | 17% | $709 |
| Training, upskilling and reskilling | € 84 | € 49 | 72% | 78% | $100 |
Organic growth excludes the impact of currencies, acquisitions and divestitures.
Guidance
Adecco expects business conditions to continue a gradual improvement in the third quarter, assuming limited impact from the delta variant of Covid-19.
Share price and market cap
Shares in Adecco closed at 56.60 Swiss francs (US$61.83), 15.57% below their 52-week high, according to FT.com. The company had market cap of 10.02 billion Swiss France (US$11.14 billion).