Adecco: good results, but difficult economic conditions ahead

Adecco reported better-than-expected third-quarter results. Revenue and gross profit were up +16% and +17% respectively year-on-year. These good results are partly due to a rebound in the automotive sector in Germany. However, this increase in turnover has come at the expense of margins, which remain relatively low. In addition, the deterioration of the economic situation raises fears of a slowdown for the end of the year and the first part of 2023. The group has implemented a savings program with the objective of reducing costs by €150 million by mid-2024. In addition, the integration of the technology company AKA should make it possible to achieve synergies of around €40 million in terms of turnover and EBITA by 2023.