Enhanced Quarterly Progress in Q4 of 2017
Adecco Group Reports Strong Financial Performance in 2017, Announces Acquisition of Vettery
The Adecco Group, a global leader in human resources, has announced its financial results for the year 2017, showing a robust performance across various key metrics. Alain Dehaze, Group Chief Executive Officer, expressed gratitude to the 34,000 colleagues for their contributions to the progress achieved during the year.
In 2017, the company reported a net income attributable to the group's shareholders of EUR 788 million, marking a 9% year-over-year increase. Organic revenue growth for the year was up 6%, driven by strong growth in France, Italy, Iberia, and Benelux & Nordics. The proposed dividend for the year was set at CHF 2.50 per share, a 4% year-over-year increase, and a EUR 150 million share buyback was announced for FY 2017.
The EBITA margin excluding one-offs in Q4 2017 was 4.6%, down 50 bps year over year, primarily due to the decline in gross margin. However, costs in Q4 2017 were well managed, with FTEs up 3% and SG&A excluding one-offs up 5% organically, including strategic investments. Permanent placement revenue growth in Q4 2017 was up 18% organically.
The gross margin in Q4 2017 decreased 70 bps organically year over year, due to unfavorable timing of bank holidays and the impact of accruals. EBITA for the full year was 4.9%, with one-offs of EUR 4 million in Q4 2017 and EUR 7 million in FY 2017. In comparison, SG&A and EBITA included one-offs of EUR 8 million in Q4 2016 and EUR 36 million in FY 2016.
In early 2018, the acquisition of Vettery, a digital professional recruitment platform, was announced. This move is expected to help the Adecco Group grow its share of the EUR 25bn professional permanent recruitment market, currently accounting for approximately 1% of revenues.
The Adecco Group's strategic agenda for 2017-2018 typically focused on driving digital transformation and innovation in HR services, expanding the company's market position globally, enhancing workforce solutions with a strong focus on client and candidate experience, and strengthening operational efficiency through technology and new service models.
For more detailed information on the Q4 & FY 2017 results, strategy update, regional performance, digital portfolio including Vettery, labour markets outlook, group at a glance, delivering progress, and corporate profile, please refer to the provided links. Revenues in January and February 2018 were up 5%, organically and trading days adjusted, indicating a positive start to the year.
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