Bulletin: Adecco's Robust Balance Sheet Gives It Strength To Shake Off Effects Of The Pandemic

LONDON (S&P Global Ratings) March 23, 2021--S&P Global Ratings said today that Adecco Group AG's 2020 results were in line with our expectations for the rating. The group's policy is to maintain a conservative balance sheet, because of the cyclical nature of its end markets. This mitigated the short-term pressure that the COVID-19 pandemic has had on the group's earnings. Given its focus on the cyclical staffing industry, Adecco found 2020 tough. The pandemic subdued economic activity and as businesses reined in costs, Adecco saw office closures and reduced use of temporary staff in its serviced end-markets. As a result, Adecco's revenue declined by a material 16.5% in 2020. Although the group sought out counteractive measures, such as reducing its

...March 23, 2021 LONDON (S&P Global Ratings) March 23, 2021--S&P Global Ratings said today that Adecco Group AG's 2020 results were in line with our expectations for the rating. The group's policy is to maintain a conservative balance sheet, because of the cyclical nature of its end markets. This mitigated the short-term pressure that the COVID-19 pandemic has had on the group's earnings. Given its focus on the cyclical staffing industry, Adecco found 2020 tough. The pandemic subdued economic activity and as businesses reined in costs, Adecco saw office closures and reduced use of temporary staff in its serviced end-markets. As a result, Adecco's revenue declined by a material 16.5% in 2020. Although the group sought out counteractive measures, such as reducing its cost base and focusing resources on growth areas like e-commerce and logistics, these measures could not fully offset the operating leverage from the lower revenue base. Therefore, the group saw its S&P Global Ratings-adjusted...

Bulletin