Bulletin: Adecco's Dividend Cuts Support Deleveraging Amid Challenging Macroenvironment

This report does not constitute a rating action. LONDON (S&P Global Ratings) Feb. 27, 2025-- S&P Global Ratings today said that Adecco Group AG's announcement of a dividend cut will support deleveraging and somewhat mitigate the impact of the current challenging macroeconomic environment that continues to weigh on Adecco?s earnings. Adecco?s S&P Global Ratings-adjusted leverage (based on preliminary numbers as of Dec. 31, 2024) stood at 2.8x (2023: 2.6x) compared with our previous expectations of 2.3x. While working capital and lower capital spending supported cash generation, Adecco reported slightly weaker operating performance than we expected with a top-line decline of 3% and S&P Global Ratings-adjusted EBITDA margin of 4.3%. With the exception of Adecco's operations in Asia-Pacific, Southern and Eastern

...February 28, 2025 This report does not constitute a rating action. LONDON (S&P Global Ratings) Feb. 27, 2025-- S&P Global Ratings today said that Adecco Group AG's announcement of a dividend cut will support deleveraging and somewhat mitigate the impact of the current challenging macroeconomic environment that continues to weigh on Adecco's earnings. Adecco's S&P Global Ratings-adjusted leverage (based on preliminary numbers as of Dec. 31, 2024) stood at 2.8x (2023: 2.6x) compared with our previous expectations of 2.3x. While working capital and lower capital spending supported cash generation, Adecco reported slightly weaker operating performance than we expected with a top-line decline of 3% and S&P Global Ratings- adjusted EBITDA margin of 4.3%. With the exception of Adecco's operations in Asia-Pacific, Southern and Eastern Europe, the Middle East, and North Africa, top line remained subdued across all segments, including Akkodis. However, Adecco has updated its dividend policy, which...

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