Shares in Adecco jumped by nearly 15% on Thursday after the staffing group reported stronger third-quarter earnings and improving demand across its regions, dpa-AFX reported. The Swiss-listed group said organic revenue grew 3.7% from a year earlier, with its main Adecco division up 4.7%.

Growth was broad-based. The Americas rose 9%, EMEA excluding France rose 8% and Asia-Pacific rose 5%, the company said in its results statement. Permanent placement returned to growth, and the group said flexible placement continued to gain momentum.

Profit and margins improve

EBITA excluding one-off items rose 10% to 213 million euros, while the EBITA margin widened to 3.6%. Operating income increased 14% to 180 million euros, and basic earnings per share rose 23% to 0.65 euros. Adjusted earnings per share were up 17% at 0.79 euros.

Gross margin was 18.9%, down 30 basis points from a year earlier but up 30 basis points on the previous quarter, which the company attributed to its business mix and firm pricing. Operating cash flow rose 6% to 213 million euros.

Adecco also said it had reduced its debt further, with net debt at 2.5 times EBITDA, and that it remained on track to bring the ratio to 1.5 times or below by the end of 2027. The group plans 75 million euros of additional annual cost savings by the third quarter of 2027 as it simplifies its organisation.

Sources: PR Newswire, TradingView / dpa-AFX