Randstad nv reported fourth-quarter revenue fell 4% year over year on an organic basis. The global staffing giant cited continuing improvement since the start of the Covid-19 pandemic. It also announced North American revenue posted growth on an organic basis.
“Our revenue trend recovered consistently month-by-month from April to December, with activity momentum in January 2021 reaching last year’s prepandemic levels, driven by our operational agility and diversified portfolio,” CEO Jacques van den Broek said.
The company also cited a strong performance in its inhouse business; however, van den Broek said visibility going forward remains limited given the ongoing macroeconomic uncertainty caused by Covid-19.
| (€millions) | Q4 2020 | Q4 2019 | % change | % organic change | Q4 2020 (US$millions) |
| Revenue | € 5,693 | € 5,995 | -5% | -4% | $6,992 |
| Gross profit | € 1,108 | € 1,201 | -8% | -6% | $1,361 |
| Gross margin | 19.5% | 20.0% | – | – | – |
| Operating profit | € 215 | € 230 | -7% | – | $264 |
| Net income | € 208 | € 167 | 25% | – | $255 |
North America revenue rose 1% on an organic basis; this compares to a 10% year-over-year decline in the third quarter.
Looking at just the US, revenue was up 1% year over year on an organic basis; it had fallen 9% year over year in the third quarter. The growth occurred in Randstad’s US staffing/inhouse services business where revenue was up 7% year over year after falling 9% in the third quarter. Professionals revenue was down 6% in the fourth quarter; it had fallen 10% in the third quarter.
Canadian revenue was down 5% on an organic basis in the fourth quarter after falling by 12% in the third quarter.
Randstad measures organic growth by excluding the impact of currencies, acquisitions, disposals and reclassifications.
Revenue by geography
| (€millions) | Q4 2020 | Q4 2019 | % change | % organic change | Q4 2020 (US$millions) |
| North America | € 1,093 | € 1,126 | -3% | 1% | $1,342 |
| France | € 872 | € 928 | -6% | -7% | $1,071 |
| Netherlands | € 778 | € 815 | -5% | -6% | $956 |
| Germany | € 437 | € 482 | -9% | -5% | $537 |
| Belgium & Luxembourg | € 389 | € 396 | -2% | -3% | $478 |
| Italy | € 423 | € 416 | 2% | 0% | $520 |
| Iberia | € 359 | € 380 | -6% | -4% | $441 |
| Other European countries | € 534 | € 572 | -7% | -4% | $656 |
| Rest of the world | € 543 | € 581 | -7% | -1% | $667 |
| Global businesses | € 265 | € 299 | -11% | -7% | $325 |
Randstad Sourceright revenue was down 2% year over year on an organic basis; it had fallen 16% in the third quarter. Monster revenue fell 26% organically in the fourth quarter; it had fallen 29% in Q3.
The company noted its RiseSmart platform, which provides outplacement services, more than doubled its revenue in the fourth quarter. It had also been up 97% year over year in the third quarter.
Revenue by business line
| (€millions) | Q4 2020 | Q4 2019 | % change | % organic change | Q4 2020 (US$millions) |
| Staffing | € 2,780 | € 3,017 | -8% | -6% | $3,415 |
| Inhouse Services | € 1,456 | € 1,347 | 8% | 8% | $1,788 |
| Professionals | € 1,192 | € 1,332 | -11% | -7% | $1,464 |
| Global businesses | € 265 | € 299 | -11% | -7% | $325 |
Full-year results
| (€millions) | FY 2020 | FY 2019 | % change | % organic change | FY 2020 (US$millions) |
| Revenue | € 20,718 | € 23,676 | -12% | -12% | $25,447 |
| Gross profit | € 3,970 | € 4,726 | -16% | -16% | $4,876 |
| Gross margin | 19.2% | 20.0% | – | – | – |
| Operating profit | € 384 | € 859 | -55% | – | $472 |
| Net income | € 304 | € 606 | -50% | – | $373 |
Guidance
Randstad noted volumes in January were reaching last year’s prepandemic levels with continued improved momentum. Still, first-quarter gross margin is expected to be modestly lower sequentially due to seasonality.
Share price and market cap
Randstad shares set a new 52-week high during today’s trading session when they reached €56.66 (US$68.22); shares closed at €55.64 (US$66.99), according to FT.com. The company had a market cap of €9.96 billion (US$11.99 billion).