By Cecilia Butini
Adecco Group said Tuesday that it is reorganizing its structure ahead of its next economic cycle and that it expects a higher margin on earnings before interest and taxes compared with the previous cycle.
The Swiss staffing company said it is focusing the group on three distinct business units named Adecco, Talent Solutions and Modi, and that the restructuring completes a process it began during its previous economic cycle, which runs from 2017 to 2020.
For the upcoming cycle, the company expects its EBITA margin to be in the range of 3% to 6%, compared with a margin range of 2.5%-5% in the economic cycle ending in 2020.
Adecco also expects to deliver cash conversion greater than 90% on average, which is set to support investments and a progressive dividend.
Adecco added that trading has been "modestly ahead of management's expectations" since it presented results for the third quarter in November. It said that recent lockdown measures to curb the spread of the coronavirus in European countries had a smaller impact on demand than expected.
The company is holding a Capital Markets Day event this afternoon.
Write to Cecilia Butini at firstname.lastname@example.org