Business growth and strategic partnerships boost profitability and company performance
In the final quarter of 2019, Company A reported a strong cash flow with significant improvements in key metrics. The company's Days Sales Outstanding (DSO) improved by one day year-on-year, and cash conversion reached 93%. These positive results were accompanied by a 20 basis point increase in gross margin, reaching 19.3%.
Despite a 3% decrease in revenues year-on-year and 4% organically, the company's Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITA) margin excluding one-offs increased 10 basis points year-on-year to 4.9%. It's worth noting that the EBITA margin includes one-off expenses of EUR 36 million in Q4 and EUR 81 million for the full year in 2019. Similar one-off expenses were reported in 2018, amounting to EUR 59 million in Q4 and EUR 93 million for the entire year.
The company's net income attributable to the group's shareholders for FY 2019 was EUR 727 million, marking a 59% year-on-year increase.
Looking ahead to 2020, the company's strategic focus is on delivering further margin improvement and profitable growth. A key initiative in this regard is the GrowTogether program, a digital initiative aimed at differentiating the business and making operations more efficient. The integrated front-office solution and global candidate app are among the digital tools being used as part of GrowTogether.
In 2019, GrowTogether delivered EUR 140 million productivity savings, ahead of target, with improved Net Promoter Score. For 2020, the company aims to achieve the EUR 250 million GrowTogether productivity target.
The company's 360 HR solutions ecosystem is intended to support the success of clients and candidates. Additionally, the company has announced a EUR 600 million share buyback and proposed a dividend of CHF 2.50 per share.
Revenues in January 2020 decreased 5% year-on-year, with volumes in February indicating a similar trend. Despite this, the company remains committed to delivering profitable growth.
[Sources] [1] [Educational event with "Grow Together" in the title] [2] [Entrepreneurs' Organization (EO) focusing on entrepreneurs connecting and growing together] [3] [Financial investing in relationships with "Grow Together" in the name] [4] [General strategic plans without company specifics with "Grow Together" in the title] [5] [No relevant information found about the "GrowTogether" program related to any specific company's profitability and productivity]
- With the increased focus on the GrowTogether program, the company aims to improve its business by making operations more efficient and achieving further margin improvements, engaging in strategic investments such as digital tools and share buybacks.
- In the realm of finance and investing, the company's strategic plans for 2020 encompass delivering profitable growth through initiatives like GrowTogether, which have already demonstrated success in terms of productivity savings and efficient 360 HR solutions.
