Swiss multinational human resource consulting company Adecco Group announced results for Q1 2015. Revenues were EUR 5.1 billion, up 4% in constant currency compared to the prior year.
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The gross margin was 19.1%, an increase of 50 bps. SG&A was up 1% in constant currency and excluding prior year restructuring costs. The EBITA margin was 4.6%, up 60 bps compared to the EBITA margin excluding restructuring costs in Q1 2014.
Net income attributable to Adecco shareholders was up 45% to EUR 160 million and basic EPS increased by 49% to EUR 0.92.
Q1 2015 revenues of EUR 5.1 billion were up 9% year-on-year, or up 4% in constant currency. Currency fluctuations had a positive impact on revenues of approximately 5%. By business line, revenues in constant currency grew by 5% in General Staffing, with Industrial up 5% and Office up 4%, and declined by 1% in Professional Staffing.
Permanent placement revenues amounted to EUR 99 million, up 12% in constant currency. Revenues from Career Transition (outplacement) totalled EUR 86 million, flat in constant currency.
Gross profit amounted to EUR 972 million, an increase of 12% or 5% in constant currency. The gross margin was 19.1%, up 50 bps year-on-year. Temporary staffing had a 30 bps positive impact on gross margin, driven by company's continued strict approach to pricing and helped by a favourable one-time item in France. Permanent placement added a further 20 bps to gross margin.
SG&A was EUR 736 million, up 1% in constant currency and excluding prior year restructuring costs. There were no restructuring costs in Q1 2015, compared to EUR 5 million in Q1 2014.
Sequentially, SG&A was up 1% in constant currency and excluding the Q4 2014 restructuring costs. Compared to Q1 2014, FTE employees increased by 1% and the branch network increased by 1%.
EBITA was EUR 236 million, up 21% in constant currency and excluding prior year restructuring costs. The EBITA margin was 4.6%, up 60 bps compared to the EBITA margin excluding restructuring costs of 4.0% in Q1 2014.
Amortisation of intangible assets was EUR 8 million compared to EUR 9 million in Q1 2014. Operating income was EUR 228 million compared to EUR 171 million last year. ■