FINANCIALS: French decline continues but Adecco sees growth from October
6 November 2013
Staffing giant Adecco says it returned to growth in October, the final month of Q3, as it reported flat revenues and increased income for the period, according to results available from the company’s website.
Wed, 6 Nov 2013Staffing giant Adecco says it returned to growth in October, the final month of Q3, as it reported flat revenues and increased income for the period, according to results available from the company's website.
Adecco’s revenues of €5.03bn (£4.22bn) for the quarter were down 5% on the same period in 2012, but when adjusted for currency fluctuation, represented no change. This comes after currency-adjusted revenue declines in every quarter since the 1% growth in the first three months of last year.
Currency adjusted, gross profit grew 5% to €942m, with operating income up 41% to €263m.
Chief executive officer Patrick De Maeseneire comments: “We delivered a strong performance in the third quarter. With most European economies coming out of recession, we expect demand for flexible labour to increase. In Q3 2013 we returned to growth in many countries in Europe and the pick-up in Italy, Germany and Spain is especially encouraging.
“After the flat revenue development in the quarter, the group returned to growth in October.”
However, decline continued in the firm’s French business, by far its single largest market, making up a quarter of group revenue.
A currency-adjusted year-on-year decline of 5% was seen for France. However, this is an improved trend after the last six quarterly reports all saw French revenues declining by 10% or more. France has previously accounted for over a third of the group.
Revenues for Adecco’s French market have declined year-on-year every quarter since the beginning of 2012. However, this trend may have slowed, as Q3’s figure comes after six consecutive of this decline being 10% or greater.
The UK & Ireland market saw revenues rise by 1% to €481m, with Adecco noting that this compares with the Olympic and Paralympic period last year, which saw improved revenues but also meant one-off sponsorship costs, affecting profitability.
Declines were also seen in Australia & New Zealand (down 10%), Japan (5%), Switzerland (4%) and the Nordics (1%).
Revenues split by industry saw general staffing, making up three-quarters of the group, flat. Engineering and technical was also flat, while modest gains were seen in IT, engineering & technology and finance & legal, although medical and science dropped 11%.
Adecco’s revenues of €5.03bn (£4.22bn) for the quarter were down 5% on the same period in 2012, but when adjusted for currency fluctuation, represented no change. This comes after currency-adjusted revenue declines in every quarter since the 1% growth in the first three months of last year.
Currency adjusted, gross profit grew 5% to €942m, with operating income up 41% to €263m.
Chief executive officer Patrick De Maeseneire comments: “We delivered a strong performance in the third quarter. With most European economies coming out of recession, we expect demand for flexible labour to increase. In Q3 2013 we returned to growth in many countries in Europe and the pick-up in Italy, Germany and Spain is especially encouraging.
“After the flat revenue development in the quarter, the group returned to growth in October.”
However, decline continued in the firm’s French business, by far its single largest market, making up a quarter of group revenue.
A currency-adjusted year-on-year decline of 5% was seen for France. However, this is an improved trend after the last six quarterly reports all saw French revenues declining by 10% or more. France has previously accounted for over a third of the group.
Revenues for Adecco’s French market have declined year-on-year every quarter since the beginning of 2012. However, this trend may have slowed, as Q3’s figure comes after six consecutive of this decline being 10% or greater.
The UK & Ireland market saw revenues rise by 1% to €481m, with Adecco noting that this compares with the Olympic and Paralympic period last year, which saw improved revenues but also meant one-off sponsorship costs, affecting profitability.
Declines were also seen in Australia & New Zealand (down 10%), Japan (5%), Switzerland (4%) and the Nordics (1%).
Revenues split by industry saw general staffing, making up three-quarters of the group, flat. Engineering and technical was also flat, while modest gains were seen in IT, engineering & technology and finance & legal, although medical and science dropped 11%.
