Randstad nv, one of the world’s largest staffing firms, reported revenue fell 25% year over year on an organic basis in its second quarter ended June 30.
“Trading conditions in the second quarter reached the low point in April when country lockdowns were most intensified,” said CEO Jacques van den Broek. “Since then, the revenue decline started to gradually ease into May and June in most of our geographies. Visibility remains very limited, with ongoing high macroeconomic uncertainty and some recent signs of regional lockdowns again.”
Reuters reported Randstad’s sales fell less than expected; analysts had expected second-quarter revenue at €3.91 billion (USD4.40 billion).
North American revenue fell 18% year over year on an organic basis in the second quarter.
| (€millions) | Q2 2020 | Q2 2019 | % change | % organic change | Q2 2020 (US$millions) |
| Revenue | € 4,437 | € 5,957 | -26% | -25% | $4,990 |
| Gross profit | € 830 | € 1,193 | -30% | -30% | $934 |
| Gross margin | 18.7% | 20.0% | – | – | – |
| Operating profit | (€ 69) | € 238 | – | – | -$78 |
| Net income | (€ 57) | € 166 | nm | – | -$64 |
Randstad measures organic change by excluding the impact of currencies, acquisitions, disposals and reclassifications. In addition, organic change in revenue is adjusted for working days.
US revenue fell 17% organically year over year in the second quarter; the decline was 23% in Randstad’s US “staffing/inhouse services” segment and 9% in its “US professionals” segment.
In Canada, revenue was down 25% organically in the first quarter.
Randstad Sourceright revenue, which includes MSP and RPO services, was down by 25% organically year over year in the second quarter, while Monster revenue fell 31%. Monster’s revenue had fallen by 20% in the first quarter. Revenue in Randstad’s global outplacement and reskilling platform RiseSmart rose 29%, up from 7% growth in the first quarter. Randstad Sourceright, Monster and RiseSmart are included in the company’s “global businesses” segment.
Revenue by geography
| (€millions) | Q2 2020 | Q2 2019 | % change | % organic change* | Q2 2020 (US$millions) |
| North America | € 944 | € 1,092 | -14% | -18% | $1,062 |
| France | € 559 | € 959 | -42% | -41% | $629 |
| Netherlands | € 624 | € 851 | -27% | -24% | $702 |
| Germany | € 322 | € 512 | -37% | -31% | $362 |
| Belgium & Luxembourg | € 279 | € 393 | -29% | -29% | $314 |
| Italy | € 301 | € 429 | -30% | -30% | $339 |
| Iberia | € 245 | € 369 | -34% | -34% | $276 |
| Other European countries | € 437 | € 541 | -19% | -18% | $492 |
| Rest of the world | € 507 | € 520 | -3% | -2% | $570 |
| Global businesses | € 219 | € 291 | -25% | -25% | $246 |
Revenue was down across all business lines, led by a 31% decline in staffing.
Revenue by business line
| (€millions) | Q2 2020 | Q2 2019 | % change | % organic change* | Q2 2020 (US$millions) |
| Staffing | € 2,086 | € 3,052 | -32% | -31% | $2,346 |
| Inhouse Services | € 1,013 | € 1,333 | -24% | -25% | $1,139 |
| Professionals | € 1,119 | € 1,281 | -13% | -12% | $1,259 |
| Global businesses | € 219 | € 291 | -25% | -25% | $246 |
Outlook
Revenue decreased by 25% in the second quarter and by 21% in June. The development of volumes in early July indicate further positive momentum.
“We are aiming for a recovery ratio of 50% over time,” van den Broek said. “For Q3 2020, we expect a recovery ratio of 30%-40%, reflecting a mitigated effect of government support schemes in some countries, selective investments in growth areas, and continued agile cost management.”
Share price and market cap
Shares in Randstad closed up 9.24% to €45.64 (US$51.33) in Europe; the company had a market cap of €7.66 billion (US$8.61 billion), according to FT.com.