Adecco profit drops 87% on 29% revenue fall

Adecco Group AG on Thursday reported a 87% fall in second-quarter net profit, missing analysts’ forecasts, on revenue that also fell due to coronavirus-related lockdowns.

The Swiss human-resources company said revenue improved during the quarter and was down 26% on an organic basis in June.

Adecco made a net profit for quarter ended June 30 of 21 million euros ($24.9 million), compared with EUR159 million for the same period last year and a forecast of EUR59.5 million, taken from FactSet and based on two analysts’ forecasts.

Revenue fell 29%–or 28% on an organic basis–to EUR4.18 billion from EUR5.92 billion and compares with a forecast of EUR3.83 billion, taken from FactSet and based on three analysts’ estimates.

Adjusted earnings before interest, taxes and amortization–one of the company’s preferred metrics, which strips out exceptional and other one-off items–fell to EUR75 million, from EUR265 million.

“While the economic environment remains uncertain, linked to Covid-19, the group is well positioned, both financially and operationally, to capitalize on opportunities as the global economy recovers,” Adecco said.

Ian Walker

source:marketwatch.com