Adecco Group (ADEN) Q4 2024 earnings summary

Executive summary

• 2024 revenues declined by 3% year-on-year to €23,138 million, with gross profit at €4,496 million and EBITA at €709 million (3.1% margin), reflecting challenging market conditions.

• Market share increased by 200 basis points in 2024, supported by above-target G&A savings of €174 million.

• Strong cash generation with FY operating cash flow of €707 million and cash conversion ratio at 109%.

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

• Accelerated AI adoption and digital transformation are enhancing recruiter efficiency and customer experience.

Financial highlights

• Q4 2024 revenues were €5.9 billion, down 5% year-on-year; gross profit €1,129 million (19.2% margin); EBITA €187 million (3.2% margin); adjusted EPS €0.63.

• G&A costs reduced by 14% year-on-year in Q4 and 22% versus 2022 baseline.

• Q4 operating cash flow was €491 million, up €174 million year-on-year; full-year free cash flow was €563 million.

• Net debt at year-end was €2,476 million (2.8x EBITDA), €114 million lower year-on-year.

• CapEx in 2024 was €144 million, down from over €210 million.

Outlook and guidance

• Q1 2025 gross margin expected to be higher sequentially, with SG&A expenses (excluding one-offs) broadly flat.

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

• Targeting net debt-to-EBITDA ratio at or below 1.5x by end 2027, absent major disruptions.

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