Randstad nv, the largest staffing firm globally, reported challenging conditions continued in the third quarter. Revenue fell 7% year over year on an organic basis to €6.26 billion (US$6.62 billion). Europe, Latam and APAC were the more resilient regions, with tougher market conditions in North America.
Revenue was down across all geographical areas on an organic basis with the exception of Asia Pacific, which reported 2% growth. In North America, revenue fell 16% on an organic basis.
“We continued to perform resiliently in the third quarter amid the ongoing global macroeconomic challenges,” Randstad CEO Sander van ‘t Noordende said in a press release. “Europe, Latam and Asia-Pacific were our better-performing regions, while tough domestic market conditions impacted our performance in North America.”
He also noted strategic progress in the third quarter with the launch of Randstad Digital. “This is an important step which positions Randstad as a digital enablement partner for transforming businesses by providing global talent, capacity and solutions across specialized platforms. We are excited about the growth opportunities in this area,” van ‘t Noordende said.
In Randstad’s “global businesses” segment, revenue fell 12% on an organic basis. The enterprise solutions portion of global businesses revenue fell 12% organically. Revenue at Monster was also down 12% year over year.
Meanwhile, perm fees — which accounted for 10.6% of gross profit — fell 22% year over year on an organic basis, including a 40% decline in North America. Perm fees were down 5% year over year in Northern Europe and down 13% in Southern Europe, UK and Latin America. In the Asia Pacific region, perm fees were down 17%.
In North America, Randstad reported revenue per working day was down 16%, with US revenue down 15%. US professionals revenue fell 11% year over year, while US staffing/in-house services revenue was down 19%. In Canada, revenue fell 16% in the third quarter.
Organic growth excludes the impact of currencies, acquisitions, disposals and reclassifications.
Guidance
The macroeconomic conditions Randstad experienced in the third quarter have continued in early October, with the year-over-year growth rate of employees working in line with the third-quarter growth rate. Fourth-quarter gross margin and operating expenses are both expected to be broadly in line sequentially.
Share Price
Shares in Randstad closed up 1.67% today in Europe to €48.69 (US$51.70); shares were 6.54% above their 52-week low.