Randstad reports 5.9% revenue drop in Q3

AMSTERDAM, NETHERLANDS — Staffing firm Randstad reported a 5.9% revenue decline for the third quarter of 2024, bringing the total to €6.015 billion (US$6.49 billion). This represents a 3.9% decrease from the previous year when accounting for currency effects and other factors.
The company’s gross profit also fell by 9% year-on-year to approximately €1.172 billion (US$1.26 billion) after adjusting for €4 million (US$4.32 million) in one-off costs.
At the same time, its EBITA (earnings before interest, taxes, and amortization) dropped significantly to €179 million (US$193 million) from €257 million (US$277 million) in Q3 2023.
After adjustments for integration costs and one-offs, the underlying EBITA was €196 million (US$211 million), reflecting a 29% decline. The underlying EBITA margin reached 3.3% during the quarter.
Regional performance variations
Randstad‘s performance varied across different regions. In North America, revenue dropped by 9% due to challenging market conditions in the United States and Canada.
Northern Europe also saw an 8% revenue decline, with Germany experiencing an 11% drop due to tough market conditions.
Randstad’s revenue also decreased by 2% in Southern Europe, the United Kingdom, and Latin America. Italy showed resilience, with a 3% increase in revenue.
The Asia Pacific region recorded a 5% decline in total revenue organically, although Japan performed well with a 4% increase in revenue.
Strategic moves and future outlook
Despite economic challenges, Randstad is focusing on strategic growth areas. The company announced its acquisition of Zorgwerk, a healthcare staffing platform in the Netherlands, aiming to strengthen its position in the healthcare sector.
CEO Sander van ‘t Noordende emphasized the company’s commitment to operational discipline and strategic investments. “Whilst the challenging macroeconomic environment persisted over the quarter, trading conditions stabilized across some of our markets,” he stated.
In response to questions about the upcoming U.S. elections, van ‘t Noordende told Reuters that resolving the elections is crucial as it will provide clarity for Randstad’s clients regarding the economic climate, enabling them to “start adjusting their strategies.”
Looking forward, Randstad anticipates stable volumes as it enters the fourth quarter of 2024 and expects to benefit from easier comparables. The company noted that its Q4 gross margin would be affected by the disposal of its online talent recruitment firm Monster, but it expects underlying stability in operating expenses.