Adecco’s second-quarter revenue fell 28% on an organic basis including adjustment for business days as countries put lockdown measures in place to stop the spread of Covid-19, the company announced today.
Still, the Zurich, Switzerland-based company noted revenue trends improved as the quarter progressed. Revenue in June was down 26% on an organic basis when adjusted for business days — revenue in April had been down 33%. Adecco also noted further improvement in July.
“The public health and economic crisis linked to Covid-19 intensified during Q2, creating an extremely challenging market environment,” CEO Alain Dehaze said.
| (€millions) | Q2 2020 | Q2 2019 | % change | % organic change | Q2 2020 (US$millions) |
| Revenue | € 4,181 | € 5,923 | -29% | -28% | $4,702 |
| Gross profit | € 786 | € 1,128 | -30% | -28% | $884 |
| Gross margin | 18.8% | 19.0% | – | – | – |
| Net income | € 21 | € 159 | -87% | – | $24 |
Dehaze also noted the recovery is likely to be gradual and potentially volatile; much uncertainty persists.
Adecco reported second-quarter business developments mirrored the spread of the pandemic globally. Permanent placement revenue was most impacted; it fell 45% organically. Temporary staffing revenue was down 30%. However, career transition revenue was up 2%.
Revenue in France, the company’s largest market, fell 44% on an organic basis.
North America general staffing revenue was down 30% on an organic basis. Shutdowns in manufacturing and retail had the biggest impact on revenue growth.
Professional staffing in North America revenue fell 25% organically.
Revenue by geography
| (€millions) | Q2 2020 | Q2 2019 | % change | % organic change | % organic, business days adjusted | Q2 2020 (US$millions) |
| France | € 793 | € 1,420 | -44% | -44% | -44% | $892 |
| North America, UK & Ireland General Staffing | € 540 | € 751 | -28% | -28% | -28% | $607 |
| North America, UK & Ireland Professional Staffing | € 546 | € 847 | -35% | -28% | -28% | $614 |
| Germany, Austria, Switzerland | € 338 | € 474 | -29% | -30% | -30% | $380 |
| Benelux and Nordics | € 301 | € 482 | -37% | -36% | -35% | $339 |
| Italy | € 375 | € 497 | -24% | -24% | -23% | $422 |
| Japan | € 401 | € 364 | 10% | 6% | 5% | $451 |
| Iberia | € 202 | € 286 | -29% | -26% | -26% | $227 |
| Rest of World | € 561 | € 673 | -17% | -10% | -10% | $631 |
| Career Transition & Talent Development | € 124 | € 129 | -4% | -4% | -4% | $139 |
Lee Hecht Harrison, which provides outplacement, and Pontoon, which provides MSP and RPO, posted the smallest declines in revenue among Adecco’s brands.
Revenue by band
| (€millions) | Q2 2020 | Q2 2019 | % change | % constant currency | Q2 2020 (US$millions) |
| Adecco | € 3,071 | € 4,436 | -31% | -30% | $3,454 |
| Total workforce solutions | € 3,071 | € 4,436 | -31% | -30% | $3,454 |
| Modis | € 454 | € 507 | -10% | -11% | $511 |
| Badenoch+Clark/Spring Professional | € 278 | € 393 | -29% | -29% | $313 |
| Other professional brands | € 206 | € 399 | -48% | -48% | $232 |
| Total professional solutions | € 938 | € 1,299 | -28% | -28% | $1,055 |
| LHH | € 101 | € 104 | -3% | -3% | $114 |
| Pontoon | € 43 | € 46 | -4% | -4% | $48 |
| Ventures | € 28 | € 38 | -28% | -29% | $31 |
| Total talent solutions and ventures | € 172 | € 188 | -9% | -9% | $193 |
For more information on Adecco’s results, see our European coverage of the company.
Share price and market cap
Shares in Adecco closed down 0.22% to 44.48 Swiss francs (US$48.89), shares were 45.84% above their 52-week low. The company had a market cap of 7.27 billion Swiss francs (US$7.99 billion).