|
Amsterdam, 27 April 2007
Record results in first quarter; net income increase 44%
Download the PDF-File
Download the PowerPoint Presentation
Zach Miles, Vedior's Chief Executive, said: "These quarterly results are the best ever achieved in Q1, reflecting the progress we have made in implementing the Group's strategy and taking us closer towards our margin targets."
"We experienced strong growth in profits and sales within many of our traditional staffing markets. In addition, we have seen very good performances this quarter in a number of our professional/ executive sectors."
Q1 2007 REVIEW
Sales increased overall this quarter by 9%, with strong increases across key markets worldwide. Gross profit was up 13% and operating income increased by 34%.
Demand for permanent placement grew during the quarter resulting in a 29% organic increase in placement fees. Permanent placement fees more than doubled in France. Permanent placement now represents 3.8% of Group sales compared to 2.9% in Q1 2006.
Gross profit was €373.7 million compared to €316.8 million in Q1 2006. Our focus on higher margin business and increased permanent placement fees helped to improve gross margin to 19.3% from 18.4% in Q1 2006. The gross margin earned from the supply of temporary staffing also increased.
We continue to deliver greater operational efficiencies. As a result, our conversion ratio (operating income divided by gross profit) increased to 19.6% from 16.3%. As a percentage of sales, costs were 15.5% (Q1 2006: 15.4%).
Operating income was €73.4 million, an increase of 34%. This strong growth in profit was led by our brands in the traditional, engineering, education and legal sectors. The Group operating margin (operating income as a percentage of sales) was 3.8% - an improvement of 80 basis points over Q1 2006.
HIGHLIGHTS FOR THE FIRST QUARTER
- Operating income increased by 34%
- Conversion ratio strong at 19.6% (Q1 2006: 16.3%)
- Increase in gross margin to 19.3% (Q1 2006: 18.4%)
- 29% Increase in permanent placement fees
- Global network extended to 50 markets following expansion into Thailand
|
