POSITIVE MOMENTUM AND STRATEGIC PROGRESS IN Q3 2017

Continued strong performance while investing for profitable growth

Summary and highlights

  • Revenue growth momentum sustained at 6% organically[1] and trading days adjusted
  • Q3 EBITA[2] margin 5.4%; leading conversion ratio maintained, while investing in strategic agenda
  • Underlying productivity continues, with FTE employees up only 2% organically
  • Streamlining of brand portfolio results in one-time, non-cash charge of EUR 129 million
  • Net income attributable to Adecco Group shareholders EUR 123 million
  • Strong cash conversion and balance sheet, with 0.8x net debt[3] to EBITDA excluding one-offs[4]
  • Launch of YOSS, a new online freelancer platform, co-created with Microsoft
  • Revenue growth trend in September and October slightly above Q3 2017

"In Q3 2017, we made excellent progress on our strategic agenda to Perform, Transform and Innovate. We continued to perform, with positive growth momentum and another quarter of strong productivity, as 2% organic growth in FTE employees supported underlying revenue growth of 6%. Cash conversion also remained strong. We achieved this while investing in our key strategic initiatives: GrowTogether and Digital Ventures.

With GrowTogether we are transforming the core of our business, to drive differentiation and enhance productivity. During Q3 we accelerated IT infrastructure investments, beginning the roll-out of a new integrated front-office solution in several key markets. We also strengthened our partnership with Mya Systems, a leading AI player in HR tech, deploying the tool at a number of large US customers. In October, we further illustrated our commitment to innovation with the launch of an exciting new Digital Venture: YOSS. Co-created with Microsoft, YOSS provides a marketplace for freelancers and companies, along with value-added services and best-in-class data protection and security.

At our core we remain a people business, and the commitment of our more than 33,000 colleagues is our greatest asset. We were therefore delighted to be ranked 2nd in the Great Place to Work® - World's Best Workplaces 2017."

Alain Dehaze, Group Chief Executive Officer

[1] Organic growth is a non-US GAAP measure and excludes the impact of currency, acquisitions and divestitures.

[2] EBITA is a non-US GAAP measure and refers to operating income before amortisation and impairment of goodwill and intangible assets.

[3] Net debt is a non-US GAAP measure and comprises short-term and long-term debt less cash and cash equivalents and short-term investments.

[4] Net debt to EBITDA excluding one-offs is a non-US GAAP measure and is calculated as net debt at period end divided by the last 4 quarters of EBITA excluding one-offs plus depreciation.

Note to Editors:

Additional information is provided under the following links:

  • Alain Dehaze's Q3 highlights - broadcast quality footage
  • YOSS Demo Video
  • YOSS Background Paper
  • YOSS Infographic 1
  • YOSS Infographic 2
  • The Adecco Group Q3 Highlights Infographic
  • The Adecco Group new Headquarter B-roll


Press Release (PDF)



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