Randstad nv, one of the largest global staffing firms, reported first-quarter revenue fell 4% on an organic basis to €6.52 billion (US$7.09 billion). Gross margin improved.
“I am pleased with the performance we delivered in the first quarter amid the continued challenging macroeconomic conditions across our markets,” CEO Sander van ‘t Noordende said.
North American revenue fell 10% on an organic basis, and revenue growth was mixed in Europe. However, Asia Pacific revenue rose 4%.
In Randstad’s “global businesses” segment, revenue rose 2% on an organic basis. The enterprise solutions portion of global businesses revenue rose 5% organically, while growing demand for outplacement and career mobility services more than offset a decline in RPO revenue. Revenue at Monster was down 14% year over year.
Meanwhile, perm fees fell 8% year over year on an organic basis.
In North America, Randstad reported revenue per working day was down 10%, with US revenue down 11%. US professionals revenue fell 4% year over year, while US staffing/in-house services revenue was down 15%. In Canada, revenue fell 7% in the first quarter.
Organic growth excludes the impact of currencies, acquisitions, disposals and reclassifications.
Guidance
“The trends we experienced in the first quarter have continued into early April, and while we remain cautious, the prevailing trend of labor market scarcity remains across our markets,” van ‘t Noordende said.
Share price and market cap
Shares in Randstad closed down 6.15% today to €48.39 (US$53.49); they were 14.80% above their 52-week low, according to FT.com. The company had a market cap of €9.48 billion (US$10.48 billion).