Randstad Q3 revenue up 21%, sees ‘strong momentum’

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October 21, 2021

Global staffing giant Randstad nv reported third-quarter revenue rose 21% year over year on an organic basis. The Netherlands-headquartered firm also said revenue was up 5% compared to the third quarter of 2019.

Randstad reported perm fees rose by 74% year over year on an organic basis. It also reported revenue in its Monster job board business edged up 1% year over year.

“We continue to see strong momentum across our portfolio, with group revenues reaching record levels this quarter and surpassing Q3 2019 by 5%,” said CEO Jacques van den Broek. “Our diversified portfolio and continued investment have enabled us to outperform in many geographies, with continued market outperformance in the US and France.”

Randstad also announced today that van den Broek will step down as CEO and chair of the executive board in March 2022. It intends to appoint Sander van ‘t Noordende as his successor.

Randstad’s measure of organic growth excludes the impact of currencies, acquisitions, disposals and reclassifications. Revenue growth has also been adjusted for working days.

(€millions) Q3 2021 Q3 2020 % change % organic change Q3 2021 (US$millions)
Revenue                               6,275                               5,174 21% 21%                                     7,305
Gross profit                                1,251                                  980 28% 28%                                     1,456
Gross margin 19.9% 18.9%  – 
Operating profit 270 157 nm                                         314
Net income 199 104 91%                                         232

“Based on the strength of our performance in the first nine months of 2021, and September revenues being 6% higher than 2019, I am optimistic our continued positive momentum will persist for the remainder of the year, while still exercising caution as pandemic-related instabilities and limited visibility remain,” van den Broek said.

Revenue by geography

(€millions) Q3 2021 Q3 2020 % change % organic change Q3 2021 (US$millions)
North America                               1,153                                  987 17% 17%                                     1,342
France                                   908                                  809 12% 12%                                     1,057
Netherlands                                   852                                  690 23% 24%                                         992
Germany                                   486                                  385 26% 27%                                         566
Belgium & Luxembourg                                   432                                  376 15% 14%                                         503
Italy                                   496                                  370 34% 34%                                         577
Iberia                                   398                                  327 22% 22%                                         463
Other European countries                                   594                                  483 23% 21%                                         692
Rest of the world                                   641                                  510 26% 21%                                         746
Global businesses                                   315                                  237 33% 33%                                         367

US revenue rose 16% on an organic basis while Canadian revenue rose 28%. Randstad reported perm fees in North America rose 95%.

Randstad’s US staffing/inhouse services revenue rose by 19% in the third quarter and US professionals revenue rose 11%.

Revenue by category

(€millions) Q3 2021 Q3 2020 % change % organic change Q3 2021 (US$millions)
Staffing                               3,166                               2,549 24% 23%                                     3,686
Inhouse Services                               1,483                               1,249 19% 18%                                     1,726
Professionals                               1,311                               1,139 15% 17%                                     1,526
Global businesses                                   315                                  237 33% 33%                                         367

Randstad Sourceright revenue increased by 48% year over year in the third quarter.

Guidance

September’s organic sales growth was up 6% compared to 2019 and the development of volumes in early October indicate continued positive momentum, the company reported.

Share price and market cap

Shares in Randstad closed at €63.30 (US$73.69) today, down 5.32% from their 52-week high set July 26, according to FT.com. The company had a market cap of €11.04 billion (US$12.85 billion).

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