Solid Q1 2017 results, with strong productivity and cash flow generation
Summary and highlights
• Revenue growth momentum maintained at 6% organically and trading days adjusted, the same as in Q4 2016
• Gross margin 18.8%, down 20 bps
• Strong productivity, with FTE employees up only 1% and SG&A excluding one-offs up 2%, both organically
• EBITA margin excluding one-offs up 50 bps to 4.8% while continuing to invest for the future
• Net income attributable to Adecco Group shareholders EUR 176 million
• Strong cash flow generation and healthy balance sheet, with 0.7x net debt to EBITDA excluding one-offs
• Further deployment of our digital strategy, with the launch of Adia, an end-to-end online staffing model
• Revenues in March and April 2017 up 5-6%, organically and trading days adjusted
“In Q1 2017, The Adecco Group maintained its positive momentum, thanks to our more than 33,000 colleagues and over 700,000 associates around the world. In Q1 2017, every one of our regional business segments delivered positive revenue growth, organically and trading days adjusted. Reflecting our focus on driving productivity, our 6% underlying revenue growth was delivered with an increase of only 1% in FTE employees. And importantly, we converted our strong profit growth into excellent cash flow.
Our strategic agenda is to Perform, Transform, and Innovate. Alongside driving our operating performance in the first quarter, we are continuing to transform and innovate to capture the opportunities we see in the evolving world of work. We are excited to announce today the launch of our digital Adia brand as part of the deployment of our digital strategy. Adia is an end-to-end online staffing model targeting hospitality and events candidate profiles for the SME segment. Developed in close collaboration with Infosys, Adia is a great example of our strategy to co-create new solutions with leading technology partners, in order to realise our vision of the future of work.”
Alain Dehaze, Group Chief Executive Officer
 Organic growth is a non-US GAAP measure and excludes the impact of currency, acquisitions and divestitures.
 In Q1 2017, SG&A included one-offs of EUR 3 million.
 EBITA is a non-US GAAP measure and refers to operating income before amortisation and impairment of goodwill and intangible assets.
 Net debt is a non-US GAAP measure and comprises short-term and long-term debt less cash and cash equivalents and short-term investments.
 Net debt to EBITDA excluding one-offs is a non-US GAAP measure and is calculated as net debt at period end divided by the last 4 quarters of EBITA excluding one-offs plus depreciation