CHESEREX (dpa-AFX) - Shares of Adecco Group AG were gaining around 12 percent in Switzerland after the staffing company reported Wednesday higher profit in its fourth quarter, and the Board of Directors proposed to distribute a dividend.
Meanwhile, quarterly adjusted EBITA, a key earnings metric, and margin was lower than last year amid weak revenues.
Looking ahead, for the first quarter, Adecco expects gross margin to be higher sequentially, in line with normal seasonality.
Further, the company updated dividend policy, and the Board of Directors proposed to distribute a dividend per share of 1.00 Swiss Francs, subject to shareholder approval at the 2025 AGM.
Denis Machuel, Adecco Group CEO, said, 'We have consistently gained market share in challenging markets, streamlined the business model and reduced G&A costs by over 20 percent, ahead of target, and delivered strong cash generation. We are accelerating the roll-out of AI-powered technologies and the expansion of our advanced digital delivery engine... We are increasingly confident that markets will improve, driving growth; and our continued rigorous execution will drive further market share gains, profitability and cash in future periods, supported by the excellent positioning of the Group's portfolio in talent and technology solutions.'
In its fourth quarter, net income attributable to shareholders grew 6 percent to 73 million euros from last year's 68 million euros. Earnings per share were 0.43 euro, up 7 percent from prior year's 0.40 euro.
Adjusted earnings per share were 0.63 euro, compared to 0.75 euro last year.
Operating income, meanwhile, fell 22 percent to 144 million euros from 187 million a year ago. Adjusted EBITA was 187 million euros, down 29 percent from last year's 264 million euros. The adjusted EBITA margin dropped 110 basis points from the prior year to 3.2 percent.
Revenues fell 4 percent to 5.87 billion euros from 6.11 billion euros last year. Revenues dropped 5 percent on an organic, TDA basis.
At the Global Business Unit or GBU level, Adecco revenues were 4.59 billion euros, down 4 percent on a reported basis, and down 5 percent on an organic TDA basis.
Akkodis revenues were 6 percent lower on a reported and organic basis, and LHH revenues fell 2 percent on reported basis, and 3 percent on an organic TDA basis.
By service line, organic growth was led by Outsourcing, Consulting & Other Services, with revenues up 5 percent, Career Transition up 2 percent and Training, Up-skilling & Re-skilling revenues up 1 percent.
Meanwhile, Flexible Placement revenues fell 5 percent and Permanent Placement revenues dropped 7 percent organically.
In Switzerland, Adecco Group shares were trading at 25.54 Swiss francs, up 12.21%.
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