The Adecco Group reported fourth-quarter revenue fell 5% on an organic basis when also adjusted for business days as the recovery continued following the depths of Covid. The staffing giant reported continued improvement in North America and Europe and said its “rest of world” segment returned to growth.
Gross margin also improved in the fourth quarter to 19.6% with a boost from its outplacement business.
“Despite the difficult market environment in 2020, financial performance remained resilient,” CEO Alain Dehaze said. “After a sharp drop in Q2, we saw a consistent recovery in revenues through the second half of the year, as companies and individuals adapted to the new reality. We successfully pivoted towards growth areas, seeing more than 40% growth in e-commerce and logistics.”
| (€millions) | Q4 2020 | Q4 2019 | % change | % organic change | % organic change, business days adjusted | Q4 2020 (US$millions) |
| Revenue | € 5,406 | € 5,961 | -9% | -5% | -5% | $6,640 |
| Gross profit | € 1,060 | € 1,150 | -8% | -2% | – | $1,302 |
| Gross margin | 19.6% | 19.3% | – | – | – | – |
| Net income | € 149 | € 256 | -42% | – | – | $183 |
The 5% year-over-year revenue decline in fourth-quarter revenue marked an improvement from the 28% decline in the second quarter of 2020.
North America general staffing revenue at Adecco fell 5% in the fourth quarter on an organic and trading-days adjusted basis amid lower demand primarily from manufacturing and financial services sector clients. However, UK and Ireland general staffing revenue rose by 32%.
Meanwhile, North America professional staffing revenue fell 14%, an improvement from the 21% decline in the third quarter. Perm placement revenue in North America professional staffing was down 26%. UK & Ireland professional staffing fell 34%.
Revenue by geography
| (€millions) | Q4 2020 | Q4 2019 | % change | % organic change | % organic, business days adjusted | Q4 2020 (US$millions) |
| France | € 1,237 | € 1,370 | -10% | -10% | -10% | $1,519 |
| North America, UK & Ireland General Staffing | € 797 | € 801 | 0% | 5% | 6% | $979 |
| North America, UK & Ireland Professional Staffing | € 530 | € 827 | -36% | -22% | -22% | $651 |
| Germany, Austria, Switzerland | € 434 | € 470 | -8% | -8% | -11% | $533 |
| Benelux and Nordics | € 370 | € 455 | -19% | -18% | -19% | $454 |
| Italy | € 538 | € 493 | 9% | 9% | 9% | $661 |
| Japan | € 388 | € 393 | -1% | 2% | 0% | $477 |
| Iberia | € 303 | € 306 | -1% | 2% | 6% | $372 |
| Rest of World | € 664 | € 706 | -6% | 3% | 2% | $816 |
| Career Transition & Talent Development | € 145 | € 140 | 4% | 9% | 9% | $178 |
Rest of world revenue was up 2% on an organic basis and adjusted for trading days. This segment includes Australia, New Zealand, India, Latin America and Eastern Europe among other locations.
Organic growth excludes the impact of currency, acquisitions and divestitures.
Revenue by brand
| (€millions) | Q4 2020 | Q4 2019 | % change | % constant currency | Q4 2020 (US$millions) |
| Adecco | € 4,276 | € 4,489 | -5% | -2% | $5,252 |
| Total workforce solutions | € 4,276 | € 4,489 | -5% | -2% | $5,252 |
| Modis | € 459 | € 510 | -10% | -7% | $564 |
| Badenoch+Clark/Spring Professional | € 304 | € 378 | -20% | -17% | $373 |
| Other professional brands | € 168 | € 388 | -57% | -55% | $206 |
| Total professional solutions | € 931 | € 1,276 | -27% | -24% | $1,143 |
| LHH | € 118 | € 107 | 11% | 17% | $145 |
| Pontoon | € 49 | € 45 | 8% | 13% | $60 |
| Ventures | € 32 | € 44 | -28% | -24% | $39 |
| Total talent solutions and ventures | € 199 | € 196 | 2% | 7% | $244 |
Full-year results
| (€millions) | 2020 | 2019 | % change | % change on an organic basis | 2020 (US$millions) |
| Revenue | € 19,561 | € 23,427 | -17% | -15% | $24,026 |
| Gross profit | € 3,789 | € 4,504 | -16% | – | $4,654 |
| Gross margin | 19.4% | 19.2% | – | – | – |
| Net loss/income | (€ 98) | € 727 | -113% | – | -$120 |
Guidance
Revenue at Adecco in January was down 2% year over year on an organic basis when adjusted for trading days; volume in February indicates a similar trend.
Share price and market cap
Shares in Adecco closed down 1.74% to 58.66 Swiss francs (US$64.67); they were 4.15% below their 52-week high set on Jan. 8, FT.com reported. The company had a market cap of 9.76 billion Swiss francs (US$10.76 billion).