Adecco CFO says dividend cut difficult but necessary after drop in profit
Recruitment giant Adecco reported a 14% annual drop in full-year operating income on Wednesday, while net income fell 7% from a year earlier to 303 million euros ($318 million) in 2024.
The Swiss company said it would update its dividend policy, leading to a proposed dividend payout of 1 Swiss franc ($1.12) per share. A year earlier, dividends had been 2.50 Swiss francs per share.
Chief Financial Officer Coram Williams told CNBC’s “Squawk Box Europe” on Wednesday that the firm was “pretty pleased” with its 2024 earnings, before discussing the dividend cut.
“We have taken the decision to update our dividend policy this morning … we’re now 40% to 50% payout ratio on adjusted EPS (earnings per share), but with no floor,” he said. “We think that’s the right thing to do because, ultimately, we are a highly cash generative but cyclical business, and it will really help us accelerate deleveraging.”
“We’ve got a clear commitment to get the leverage at or below 1.5 times net debt to EBITDA (earnings before interest, taxes, depreciation, and amortization) by the end of 2027,” he added. “We understand this is difficult, but I think people will agree that this is necessary.”
— Chloe Taylor
Global debt levels hit $318 trillion in 2024: IIF
Global debt levels added nearly $7 trillion to a record $318 trillion in 2024, the Institute of International Finance said, while warning that bulging borrowing levels could lead to the return of bond vigilantes.
The global debt-to-GDP ratio rose to nearly 330% of GDP last year, marking the first annual increase in debt ratios since the start of the Covid-19 pandemic.
The IIF adds it expects global debt accumulation to slow down in the months ahead, particularly in the first half of the year, as borrowing costs remain elevated.
— Jordan Butt
Stellantis posts 70% drop in full-year profit
Auto giant Stellantis on Wednesday reported a sharp drop in full-year earnings as the company scrambles to take measures to improve its performance and profitability.
The mutlinational conglomerate, which owns household names including Jeep, Dodge, Fiat, Chrysler and Peugeot, posted full-year 2024 net profit of 5.5 billion euros ($5.77 billion), down 70% from 18.6 billion euros across full-year 2023.
Analysts had expected full-year 2024 net profit to come in at 6.4 billion euros, according to an LSEG-compiled consensus.
Shares of the Milan-listed company are up over 7% year-to-date.
— Sam Meredith
World’s largest brewer AB InBev posts fourth-quarter revenue beat
Budweiser beer in the brewery section at an H-E-B grocery store on March 02, 2023 in Austin, Texas.
Brandon Bell | Getty Images
World’s largest brewer AB InBev on Wednesday posted better-than-expected fourth-quarter sales despite an annual decline in volumes.
The drinks maker, whose brands include Budweiser, Corona and Stella Artois, reported an 3.4% increase in fourth-quarter revenue to $14.84 billion, versus the 2.9% decline to $14.05 billion forecast by LSEG analysts.
Full-year sales rose by 2.7% to $59.77 billion, compared to the $59.3 billion performance expected by analysts.
— Karen Gilchrist
European markets: Here are the opening calls
European markets are expected to open higher Wednesday.
The U.K.’s FTSE 100 index is expected to open 36 points higher at 8,681, Germany’s DAX up 127 points at 22,513, France’s CAC 30 points higher at 8,076 and Italy’s FTSE MIB 126 points higher at 38,911, according to data from IG.
Earnings are set to come from Adecco Group, AB InBev, E.On, Danone, Munich Re, Uniper, Stellantis, Wolters Kluwer, Aston Martin Lagonda Global Holdings, Covestro and Deutsche Telekom.
Data releases include the latest German and French consumer confidence figures.
— Holly Ellyatt
