Small rise in UK and Ireland margin as Adecco revenue rises 6% in Q1
8 May 2014
International staffing industry giant Adecco increased its revenues by 6% in the first quarter of 2014, compared to Q1 of 2013.
Thu, 8 May 2014International staffing industry giant Adecco increased its revenues by 6% in the first quarter of 2014, compared to Q1 of 2013.
The results reflected further gradual rises in the group’s revenue and growth in its margin.
UK and Ireland revenue was 9% higher at €509m (£418m). EBITDA was €10m, with margin improving by 10 basis points (one 10th of a percent) to 1.9%, compared to a 60 basis points rise for the group as a whole.
First quarter 2014 highlights
• Revenues up 6% year-on-year in constant currency
• Gross margin 18.6%, up 60 basis points
• SG&A (selling general and administration expenses) excluding restructuring costs up 3% in constant currency
• EBITA (earnings before interest, tax and amortisation) margin excluding restructuring costs 4%, up 100 basis points
• EBITA excluding restructuring costs €185m, up 41% in constant currency
Patrick De Maeseneire, chief executive officer of the Adecco Group, says: “In the first quarter our more than 31,000 colleagues delivered another strong performance. Revenue growth continued to pick up in Europe, led once again by our industrial business. Demand in manufacturing accelerated further, which is a good early-cycle indicator.
“We continue to be very focused on reaching our EBITA margin target of above 5.5% in 2015. Based on the good progress on our six strategic priorities, recent trends and continued favourable economic conditions expected going forward, we remain convinced we will achieve this target.”
The results reflected further gradual rises in the group’s revenue and growth in its margin.
UK and Ireland revenue was 9% higher at €509m (£418m). EBITDA was €10m, with margin improving by 10 basis points (one 10th of a percent) to 1.9%, compared to a 60 basis points rise for the group as a whole.
First quarter 2014 highlights
• Revenues up 6% year-on-year in constant currency
• Gross margin 18.6%, up 60 basis points
• SG&A (selling general and administration expenses) excluding restructuring costs up 3% in constant currency
• EBITA (earnings before interest, tax and amortisation) margin excluding restructuring costs 4%, up 100 basis points
• EBITA excluding restructuring costs €185m, up 41% in constant currency
Patrick De Maeseneire, chief executive officer of the Adecco Group, says: “In the first quarter our more than 31,000 colleagues delivered another strong performance. Revenue growth continued to pick up in Europe, led once again by our industrial business. Demand in manufacturing accelerated further, which is a good early-cycle indicator.
“We continue to be very focused on reaching our EBITA margin target of above 5.5% in 2015. Based on the good progress on our six strategic priorities, recent trends and continued favourable economic conditions expected going forward, we remain convinced we will achieve this target.”
