Adecco swings to net loss in first quarter
Adecco Group AG said Tuesday that it swung to a net loss in the first quarter, and recorded a goodwill impairment for some European countries in the face of difficult market conditions driven by the coronavirus pandemic.
The Swiss human-resource company recorded a net loss attributable to shareholders of 348 million euros ($380.2 million), contrasting net profit of EUR133 million in the same period last year.
Revenue fell 9% on an organic basis to EUR5.14 billion, the company said.
Adecco said it recognized a goodwill impairment of EUR362 million in Germany, Austria and Switzerland, driven by the degree of forecast uncertainty relating to the pandemic.
The company generated an operating loss of EUR247 million in the first quarter.
Adjusted earnings before interest, taxes and amortization came in at EUR154 million, and the company recorded a gross margin of 19.3%.
Adecco has EUR1.4 billion cash on hand, the company said.
Jessica Sier
Source:marketwatch.com