Amadeus Fire Stock: Profit Plunges 21% Amid Market Headwinds

Amadeus Fire, the prominent personnel services provider, experienced an unexpected downturn in fiscal year 2023, with consolidated revenue declining by 1.2% to approximately €437 million, contradicting analyst expectations of moderate growth. The company's performance was significantly impacted by cautious hiring practices across industries, particularly affecting its temporary staffing and recruitment divisions. The slowdown was most pronounced in commercial and IT sectors, where businesses displayed notable hesitation in making new hires. Adding to these challenges, potential candidates showed reduced willingness to change employers, further hampering business development.

Operating Results Miss Targets

The challenging business environment took a substantial toll on the company's operational performance, with EBITA dropping dramatically by 21% to €55.5 million, falling short of the company's minimum forecast of €57 million. The operating gross margin experienced a slight decline to 54.2%, while operating gross profit decreased by 2.8% to €236.7 million. The fourth quarter proved particularly challenging, with November and December marking the weakest periods of the year. The company's stock reflected these developments, declining 2% in after-hours trading on Tradegate compared to the Xetra closing price.