AHEXF - Adecco Group AG (AHEXY) Q1 2024 Earnings Call Transcript
2024-05-11 08:41:09 ET
Adecco Group AG (AHEXY)
Q1 2024 Earnings Conference Call
May 7, 2024 03:30 ET
Company Participants
Benita Barretto - Head of Investor Relations
Denis Machuel - Chief Executive Officer
Coram Williams - Chief Financial Officer
Conference Call Participants
Varanasi Suhasini - Goldman Sachs
Andrew Grobler - BNP Paribas
Simona Sarli - Bank of America
Afonso Osorio - Barclays
Remi Grenu - Morgan Stanley
Konrad Zomer - ODDO
Gian-Marco Werro - ZKB
Rory McKenzie - UBS
Presentation
Benita Barretto
Good morning. Thank you for joining the Adecco Group's Conference Call today. I'm Benita Barretto, the Group's Head of Investor Relations. With me today are the Adecco Group CEO, Denis Machuel; and CFO, Coram Williams.
Before we begin, we want to draw your attention to the disclaimer on Slide 2. Today's presentation will reference GAAP and non-GAAP financial results and operating metrics. This conference call will include forward-looking statements. These statements are based on assumptions as of today and are therefore subject to risks and uncertainties.
Let me now hand over to Denis and the results report.
Denis Machuel
Thank you, Benita and a warm welcome to all of you who've joined the call today. Let's turn to Slide 3 which provides an overview of the quarter.
The group delivered €5.7 billion in revenue, flat year-on-year on an organic training days adjusted basis. We are pleased to have delivered another quarter of strong share gains and clear outperformance in tough markets, many of which are contracting. The gross margin of 19.8% was 20 basis points higher sequentially and 100 basis points lower year-on-year. It is a healthy result that reflects the current business mix and firm pricing.
EBITA, excluding one-offs, was €157 million with a resilient margin of 2.8%. When excluding the impact of the timing of FESCO JV income, the margin is 10 basis points lower year-on-year. Adjusted EPS was €0.59, 18% lower year-on-year, mainly reflecting lower business income. Net debt to EBITDA ended the quarter at 2.7x, in line with management expectations. And cash performance improved with free cash flow of minus €93 million, better by €72 million year-on-year and a cash conversion ratio of 73%. Overall, the group demonstrated strong operational progress in the first quarter....
Adecco Group AG (AHEXY) Q1 2024 Earnings Call Transcript