Q3 Outcomes for the Year 2022
The Adecco Group, a leading global workforce solutions provider, has announced an operational plan aimed at accelerating growth and enhancing financial performance. Dubbed "Future@Work Reloaded," the strategy focuses on leveraging the company's three global business units: Adecco, Akkodis, and LHH.
At the heart of this plan is a commitment to putting people first, offering autonomy and support to foster productivity and growth across the organisation. The strategy also emphasises enterprise-wide digital transformation, with the adoption of technologies like Microsoft 365 and AI tools to boost operational efficiency.
A culture of continuous learning and change management is being cultivated, using structured methodologies such as Prosci ADKAR to ensure smooth stakeholder engagement and alignment. The combined strength of the units will be utilised to create value across the professional talent journey, with LHH's integrated talent solutions and career reinvention models powered by AI and coaching playing a significant role.
Collaboration and innovation are being fostered through a global network of over 30,000 colleagues across more than 60 countries. These colleagues embody core values like courage, collaboration, customer focus, inclusion, and passion. The group's IT & Digital function will manage strategic technology initiatives to create business value, supporting the operational execution of Future@Work Reloaded.
In addition, the Adecco Group is providing world-class upskilling and development resources to empower employees and help them deliver better outcomes for clients and themselves. The plans involve deploying three group-wide levers to simplify the organisation, improve execution, and prioritise ways to grow market share.
Denis Machuel, the group CEO, expressed confidence in the quality of the company's assets and commitment to unlocking the potential of the group. The company aims to achieve a ~6% EBITA margin and accelerate growth across all GBUs, bringing the EBITA margin back to a leading level.
The strategy seems to be paying off, with the company reporting a strong gross margin of 21.0% and a 16% increase in revenues compared to the previous period. Permanent Placement fees showed a 23% year-on-year growth, and the Akkodis GBU performed well, with the AKKA integration on track.
Year-to-date, the company has shown a +1,300 basis points (bps) growth in relative revenue, and the relative revenue growth in Q3 was +500 bps higher than the previous quarter. The company is also committed to returning to a growth leadership position in its business.
Denis Machuel unveiled the plan during a quarterly update, where he stated that the company made strong progress this quarter. He also announced a Group G&A cost savings plan, targeting a €150 million run-rate by mid-2024. The company's CEO and CFO will provide detailed plans on how they will improve financial performance during today's business update at 9:30 CET.
Conference call details are available upon request through the provided contact information. The Adecco Group will continue to host such updates to keep stakeholders informed about their progress and future plans.
The Adecco Group's plan, Future@Work Reloaded, aims to enhance financial performance in the finance industry by focusing on permanent placement, leveraging technologies from Microsoft 365 and AI tools for operational efficiency. This strategy also entails a culture of continuous learning and change management across all business units, including LHH, which will contribute value to the professional talent journey with integrated talent solutions and career reinvention models powered by AI and coaching.
