Adecco Group (ADEN) Q4 2024 earnings summary

Executive summary

• FY 2024 revenues declined 3% year-on-year to EUR 23.1 billion, with gross profit at EUR 4.5 billion and EBITA excluding one-offs at EUR 709 million (3.1% margin), reflecting challenging market conditions.

• Market share increased by 200 basis points in 2024, outperforming key competitors.

• G&A savings of EUR 174 million net of inflation were achieved, exceeding the original target.

• Cash generation was robust, with a 109% cash conversion ratio and free cash flow of EUR 563 million.

• Updated dividend policy proposes CHF 1.00 per share at a 42% payout, focusing on deleveraging and financial flexibility.

Financial highlights

• Q4 2024 revenues were EUR 5.9 billion, down 5% year-on-year; gross margin was 19.2% and EBITA margin 3.2%.

• G&A costs reduced by 14% year-on-year in Q4.

• Net debt at year-end was EUR 2,476 million, with leverage at 2.8x net debt-to-EBITDA.

• Q4 operating cash flow was EUR 491 million; free cash flow EUR 446 million, up EUR 211 million year-over-year.

• Dividend per share proposed at CHF 1, representing a 42% payout.

Outlook and guidance

• Q1 2025 gross margin expected to be higher sequentially, with SG&A broadly flat.

• Volumes stabilizing in Q4 and showing improving momentum in early 2025, especially in APAC, LATAM, and Southern Europe.

• Targeting net debt-to-EBITDA at or below 1.5x by end 2027.

• Management remains focused on G&A savings and positioning for market share gains as recovery accelerates.