Adecco delivers excellent Q4 2013
Revenue growth returns and operating leverage is strong in the final quarter of 2013
Fourth quarter 2013 highlights
Revenues up 4% year-on-year in constant currency
Gross margin 18.3%, up 50 bps
SG&A excluding restructuring cost1 up 1% in constant currency
EBITA2 excluding restructuring costs EUR 238 million, up 30% in constant currency
EBITA margin excluding restructuring costs 4.8%, up 90 bps
Full year 2013 highlights
Revenues EUR 19.5 billion, down 5% year-on-year and down 1% organically3
Gross margin 18.3%, up 40 bps
SG&A excluding restructuring and integration costs1 down 1% organically
EBITA excluding restructuring costs EUR 854 million
EBITA margin excluding restructuring costs 4.4%, up 40 bps compared to prior year EBITA margin excluding restructuring and integration costs
Net income attributable to Adecco shareholders up 48%, basic EPS up 54%
Proposed 2013 dividend of CHF 2.00 per share, up 11% compared to last year
Key figures for 2013
in EUR millions
FY 2013
reported
Q4 2013
reported
FY 2013
Constant currency growth
Q4 2013
Constant currency growth
Revenues
19,503
4,983
-2%
4%
Gross profit
3,560
913
0%
7%
EBITA excluding restructuring and integration costs
854
238
9%
30%
EBITA
821
221
18%
61%
Operating income
779
210
21%
66%
Net income attributable to Adecco shareholders
557
174
Zurich, Switzerland, March 12, 2014: the Adecco Group, the world’s leading provider of Human Resources solutions, today announced results for the full year and Q4 2013. Revenues in 2013 were EUR 19.5 billion, a decrease of 1% on an organic basis. The gross margin improved to 18.3%, up 40 bps year-on-year. Tight cost control in 2013 resulted in a 1% decrease in SG&A, organically and excluding restructuring and integration costs. The Group delivered strong profitability and achieved an EBITA margin excluding restructuring costs of 4.4% in 2013, 40 bps above the EBITA margin excluding restructuring and integration costs in 2012. In recognition of Adecco’s strong cash flow and balance sheet, the Board proposes a dividend per share of CHF 2.00 for 2013, an 11% increase on the prior year.
Patrick De Maeseneire, CEO of the Adecco Group said: “Last year began with much uncertainty, especially in Europe, but nonetheless we were cautiously optimistic. The 2013 results confirmed our view, with a gradual improvement during the course of the year. In Q1 2013, all our regions in continental Europe saw revenues decline in constant currency; in Q4 2013, Europe grew by 5% and we delivered particularly good growth in Benelux, Iberia, Germany & Austria and Italy. In 2013, we significantly improved our profitability in France, helped by cost efficiencies, the impact of CICE and our disciplined approach to pricing. In North America we achieved strong results, with solid revenue growth and good profitability. The Emerging Markets continued to grow well, accelerating during the year. For the Group, our performance in Q4 2013 was especially pleasing: we returned to revenue growth of 4% and delivered 30% growth in EBITA excluding restructuring costs, both in constant currency. This strong operating leverage is a key priority for the Group and 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 more favourable economic conditions expected going forward, we remain convinced we will achieve this target.
The Board proposes a dividend for 2013 of CHF 2.00, an increase of 11% on the prior year and a 47% pay-out of adjusted earnings. This reflects the solid balance sheet, strong performance in 2013 and our confidence in the outlook.”