The Adecco Group today reported fourth-quarter revenue increased 7% on an organic basis and trading days adjusted. France and Italy drove growth.

Gross margin declined to 17.9% in Q4 2017 from 18.8% in Q4 2016, due mainly to a decline in the temporary staffing gross margin which was impacted by the unfavourable timing of bank holidays in Germany and the year-on-year impact of accruals. Operating income was €265 million compared to €285 million in Q4 2016.

Last month, Adecco announced the acquisition of Vettery, a professional recruitment marketplace.

Adecco also announced that Shanthi Flynn, Chief Human Resources Officer for the Adecco Group, will leave the company for personal reasons by the end of April 2018.

The group also announced full-year results with revenue up 6% on an organic basis to €23.6 billion.

Alain Dehaze, Group Chief Executive Officer, commented on the results, “The Adecco Group had another solid year in 2017, with a good financial performance and significant progress made in our strategic agenda to Perform, Transform and Innovate. Organic revenue growth improved, accelerating to 7% in Q4. We maintained our focus on cost and price discipline. And we made significant investments in the new IT infrastructure and digital solutions that underpin our strategy and financial commitments.”

“We also returned almost €650 million to our shareholders, reiterating our commitment to disciplined capital allocation and leading total shareholder returns,” Dehaze said.

Revenue by geography was broken down as follows.

In France, revenue increased by 10% in General Staffing, which accounts for over 90% of revenues, and grew by 2% in Professional Staffing. Revenue growth was broad-based, with manufacturing, logistics, and automotive making the most significant contributions. Permanent placement revenues in France were up 21% over the year.

North America General Staffing, which accounts for approximately 75% of revenues, was down 4%. UK & Ireland General Staffing represented about 25% of revenues and was up 17%. Permanent placement revenues were up 1% in North America General Staffing and declined by 6% in UK & Ireland General Staffing.

North America Professional Staffing represented approximately 65% of revenues and was up 2% or 3% trading days adjusted. The group stated that strong growth in Engineering & Technical and Finance & Legal was partly offset by a decline in IT. UK & Ireland Professional Staffing represented approximately 35% of revenues and was down 5%, mainly due to a decline in IT. Permanent placement revenues increased by 7% in North America Professional Staffing and declined by 5% in UK & Ireland Professional Staffing.

In Germany & Austria, revenue was flat or up 2% trading days adjusted. In Switzerland, revenue grew by 9% or by 11% trading days adjusted.

In Benelux and Nordics, revenues were EUR 548 million, up 10% or up 12% trading days adjusted. In the Nordics, revenues were up 8% or up 10% trading days adjusted led by double-digit growth in Norway, while growth in Sweden was mid-single-digit. Revenue in Benelux was up 12% or up 13% trading days adjusted. Growth continued to be double-digit in the Netherlands while in Belgium growth was a mid-single digit.

In Italy, revenue was up 26% or up 28% trading days adjusted with growth broad-based across service lines, including temporary staffing and permanent placement.

In Japan, revenue was up 7% or up 3% trading days adjusted, with growth in professional staffing and permanent placement.

In Iberia was up 13% or up 11% trading days adjusted.

In Rest of World, revenues were up 6% or 7% trading days adjusted. Revenue growth was 14% in Australia & New Zealand, 13% in Latin America, 3% in Eastern Europe & MENA, 3% in Asia, and 8% in India, all trading days adjusted.

Revenue for  Lee Hecht Harrison was down 8%, reflecting the counter-cyclical nature of Career Transition, according to the group. Declines in the US and UK were partly offset by growth in Canada.

Looking ahead the group states that it aims for further progress on its ‘Perform, Transform and Innovate’ agenda. The Adecco Group stated that it continues driving its strategic agenda and working on its strategic initiatives. In January and February combined, growth continued at 5%, organically and trading days adjusted.

As of last trade, The Adecco Group traded at CHF 69.90 (€60.63), down 8.34% on the day and 2.72% above its 52-week low of CHF 68.05 (€59.02), set on 29 August 2017. Based on its current share price the company has a market value of CHF 13.09 billion (€11.34 billion).