Adecco: swings to loss on Covid-19 impairment

(CercleFinance.com) - Adecco said on Tuesday that it swung to a loss in the first quarter, due to a goodwill impairment relating to the Covid-19 crisis.


The Swiss staffing group announced a net loss of 348 million euros for the period, compared with a profit of 133 million euros the previous year. Revenue fell 8% on an organic basis to 5.1 billion euros, the company added.

Revenues in March were down 19% year-on-year (trading days adjusted - TDA), it said, with the rate of decline further accelerating in April (approximately -40%).

Adecco noted that it booked a goodwill impairment of 362 million euros in the quarter, relating to Germany, Austria, and Switzerland, citing the "unprecedented" degree of forecast uncertainty relating to Covid-19.

However, the human ressources group said that it has entered the crisis with a"strong" balance sheet, "good" liquidity and "robust" IT infrastructure, due to the transformation it had undertaken over the past few years.

The shares were up 1% in early morning trading on Zurich.

Copyright (c) 2020 CercleFinance.com. All rights reserved.