Adecco Group AG (AHEXF) Q1 2025 Earnings Call Transcript

2025-05-10 23:27:18 ET

Adecco Group AG (AHEXF)

Q1 2025 Earnings Conference Call

May 8, 2025 3:30 AM ET

Company Participants

Benita Barretto – Head-Investor Relations

Denis Machuel – Chief Executive Officer

Coram Williams – Chief Financial Officer

Conference Call Participants

Suhasini Varanasi – Goldman Sachs

Andy Grobler – BNP Paribas

Simona Sarli – Bank of America

Remi Grenu – Morgan Stanley

Will Kirkness – Bernstein

Simon Lechipre – Jefferies

Konrad Zomer – ABN AMRO

James Rowland Clark – Barclays

Presentation

Operator

Good morning, ladies and gentlemen, and thank you for standing by. My name is Kelvin and I will be your conference operator today. At this time, I would like to welcome everyone to the Adecco Group First Quarter 2025 Results. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session. [Operator Instructions] Thank you.

I would now like to turn the call over to Benita Barretto, Adecco Group Head of Investor Relations. Please go ahead.

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. Denis Machuel, the Adecco Group’s CEO; and Coram Williams, the CFO, are with me today.

Before we begin, we want to draw your attention to 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 joined the call today. Starting with Slide 3, which provides an overview of the Q1 results. The consistent and rigorous execution of our strategy is paying off. In the first quarter, we gained further market share with solid margin performance. The Adecco GBU was 130 basis points ahead of key competitors this quarter.

Revenues were €5.6 billion, 2% lower year-on-year on an organic, trading days-adjusted basis and 3% higher sequentially. The Group saw flex volumes improving through Q1, and we are pleased to see Adecco U.S. return to growth.

The gross margin of 19.4% was healthy, 40 basis points lower year-on-year, reflecting current business mix and firm pricing. EBITA excluding one-offs was €132 million, driving a margin of 2.4%, 40 basis points lower year-on-year. The margin evidences agile capacity management and strong cost control, in addition to the favorable timing of FESCO income....

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