Robust Profit Margin and Sustained Development Throughout Q2 in 2017
The group has announced its Q2 2017 financial results, showcasing impressive growth and strategic advancements.
The group's net income attributable to group shareholders reached EUR 192 million, reflecting a robust financial performance. Organic growth, excluding the impact of currency, acquisitions, and divestitures, was a notable 6% for the quarter, and 6% in June alone, demonstrating the group's resilience and adaptability.
In terms of workforce, FTE employees increased by only 1%, while SG&A excluding one-offs increased by 2% organically. It's worth noting that in Q2 2016, SG&A included one-off expenses of EUR 2 million. This organic growth in expenses indicates a focused and strategic approach to the group's operations.
The group's EBITA margin for Q2 was 4.8%, negatively impacted by bank holidays, but the H1 EBITA margin saw an increase of 20 basis points. EBITA, operating income before amortisation and impairment of goodwill and intangible assets, is a non-US GAAP measure.
The group's CEO, Alain Dehaze, will provide a video news release at 08:00 CET, offering insights into the company's highlights and outlook. Satya Nadella, who made significant progress on the strategic agenda "Perform, Transform, and Innovate" in Q2 2017, led the group during this period.
In terms of strategic initiatives, a digital Active Placement model was launched in Lee Hecht Harrison, and the rollout in the UK of Adia, the end-to-end online staffing platform, was commenced. The group also signed a new global partnership with Mya Systems, a leading AI player in HR technology.
The company's strong financial performance was further underscored by its excellent cash conversion and a strong balance sheet. With a net debt to EBITDA excluding one-offs of 0.8x, the company demonstrates a healthy financial position. Net debt, comprising short-term and long-term debt less cash and cash equivalents and short-term investments, is another non-US GAAP measure.
The implementation of the segmentation strategy is driving strong growth with small- and medium-sized clients and with the onsite delivery model for large clients. The group continues to make strides in its strategic initiatives, positioning itself for continued success in the future.
