Adecco revenues improve, but mixed results for Japanese recruiters
International HR giant Adecco has announced an improved revenue trend for the third quarter despite warning of a bumpy recovery ahead.
Revenues were down 15% year-on-year organically and trading days adjusted (TDA), and down 18% on a reported basis, with broad-based improvement as the quarter progressed. September revenues were down 14% organically and TDA, and October volumes showed further gradual improvement.
The Swiss-based Adecco Group reported its gross margin was up 20 bps year-on-year to 19.6% (up 40 bps organically), supported by strong performance of LHH (career transition), pricing discipline and reduced Covid-19 related impact. The company announced a EBITA margin excluding one-offs of 4.5%, with an organic recovery ratio at 64%.
Alain Dehaze, Group Chief Executive Officer, says the scale and breadth of the business and proactive account management had positioned the company to benefit from increased demand in sectors such as e-commerce and logistics.
“Despite lower revenues overall, profitability was strong as we maintained price discipline and demonstrated agile cost management,” he says. “The balanced portfolio we have built continues to be a differentiator, with LHH delivering double-digit growth and our outsourcing, consulting and up/re-skilling businesses proving more resilient than traditional staffing and recruitment. Cash flow continues to be a focus and was strong again in the quarter.”
However, he says that “looking ahead, we are prepared for the recovery to be bumpy given the rapidly evolving Covid-19 situation”, adding that Adecco would maintain focus on its strategic priorities.
Japanese recruiter results
Meanwhile, quarterly updates from high profile Japanese recruiters have, as expected, ranged widely depending on the specialisation and strategy of each company.
Healthcare focused SMS were able to shout about a positive second quarter. In the period, the company announced sales of ¥18,638 million, up 5.7%, with profits of ¥2,775 million, up nearly 20%. President and CEO Natsuki Goto says the company is looking at sales of ¥37,436 million for the year ending March 31. Profits will be around ¥4,785 million.
Trading conditions in the engineering sector have been much harder. President and CEO of Meitec, Hideyo Kokubun, announced that sales for Q2 were down 5% at ¥47,091 million and profits were down 21% at ¥3,138 million. The company is forecasting full year sales of ¥97,500 million and profits of ¥6,600 million.
Media 5 were also at the end of falling numbers, with the company recording Q1 turnover down to ¥380 million. The business is forecasting sales of ¥1,615 million for the full year.
President and CEO of Like Corporation, Yasuhiko Okamoto, was pleased to announce that its sales were up 6.1% to ¥13,163 million, with profits up 78.3% to ¥419 million. Full year, the company’s expectations are sales of ¥54,000 million and profits of ¥1,900 million.
Finally, President and CEO of Pasona, Yasuyuki Nambu, said that turnover for Q1 was up 7.7% to ¥ 85,751 million and profits were up a staggering 8,650% to ¥4,064 million.
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