First-quarter revenue at Randstad Holding nv rose 5% on an organic basis, which excludes the impact of currency acquisitions and divestitures. Gross margin remained stable year over year at 18.4%.

The company reported global MSP spend under management rose 27% and global RPO revenue rose 7%.

Revenue rose 3% on an organic basis in North America, Randstad’s largest market. In Randstad’s second-largest market, Netherlands, revenue rose 6%.

Randstad in February completed its acquisition of Swedish staffing firm Proffice AB. Proffice contributed €67.9 million (US$76.8 million) to the group’s revenue; if this acquisition had occurred on Jan. 1, 2016, the contribution to revenue would have been higher by approximately €30 million (US$33.9 million).

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“Despite global economic uncertainty we again achieved mid-single-digit growth and a >50% incremental conversion rate,” said CEO Jacques van den Broek. “Our growth rate and outperformance in France, both in staffing and in permanent placements, and the increasing growth in Germany, are signs of improving conditions in Europe. Our M&A activity has led to the consolidation of the Proffice figures in the Nordics, and RiseSmart showed good growth in the US Career Transition market, proving the value of new and disruptive business models driven by technology.”

Revenue rose on an organic basis in all of Randstad’s major markets except Belgium and Luxembourg.

Revenue by geography

Growth rates below are organic:

North America

• Reported revenue rose 3% on an organic basis. Gross profit rose 4%, with 6% growth in perm fees. Combined US businesses grew 3%, slightly impacted by the timing of Easter. US staffing/inhouse grew by 6% (Q4 2015: up 7%). US Professionals revenue was stable year-on-year (Q4 2015: 0%). In Canada, revenue was flat (Q4 2015: down 2%), ahead of a challenging market.

Netherlands

• Revenue rose 6% year-on-year (Q4 2015: up 9%), impacted by the loss of government payrolling. In addition, price pressure continued. Overall perm fees fell 19% (Q4 2015: up 3%). Staffing/inhouse businesses grew 6% (Q4 2015: up 7%). Excluding the lost payroll revenue, staffing/inhouse business was up 13%. Professionals business grew 5% (Q4 2015: up 21%).

France

• Revenue rose 9% (Q4 2015: +10%), ahead of the market. Staffing and inhouse revenue increased 8% (Q4 2015: up 10%). Professionals business was up 12%, again driven by strong performance in Randstad’s healthcare business. Perm fees rose 27% year over year (Q4 2015: up 29%).

Germany

• Revenue per working day rose 5% year-on-year (Q4 2015: up 1%). Staffing/inhouse business was up 5% (Q4 2015: up 2%), while professionals rose 8% (Q4 2015: down 1%).

Belgium and Luxembourg

• Revenue fell 3% (Q4 2015: up 6%), impacted by loss of some large accounts (partially driven by a focus on client profitability). Staffing/inhouse business fell 2% (Q4 2015: up 8%), while the professionals business fell 6% (Q4 2015: down 5%).

Iberia

• Revenue rose 8% (Q4 2015: up 11%). Spain was up 9% (Q4 2015: up 16%), with staffing/inhouse combined growing 9% (Q4 2015: up 15%). Randstad’s focus on permanent placements (up 36%) and professionals (up 19%) continued to pay off. In Portugal, revenue rose 4% (Q4 2015: up 1%). However, Randstad’s continued focus on client profitability has helped push gross profit growth to 10%.

United Kingdom

• Revenue per working day in the UK edged up 1% compared to the prior year (Q4 2015: down 4%). Gross profit growth also improved, up 2% (Q4 2015: flat). Overall perm fee growth rose 2% year-on-year (Q4 2015: up 11%).

Other European countries

• Across “other European countries,” revenue per working day rose 10% (Q4 2015: up 13%). Growth continued in Italy, which rose 11% (Q4 2015: up 19%). In Poland, revenue growth continued, reaching 11% (Q4 2015: up 10%). Revenue in Randstad’s Swiss business rose 5% year-on-year (Q4 2015: 3%). In the Nordics, revenue was flat on an organic basis (Q4 2015: up 7%).

Rest of the world

• Overall revenue in the “rest of the world” region rose 5% organically (Q4 2015: up 7%). In Japan, revenue rose 3% (Q4 2015: up 1%). Revenue in Australia/New Zealand rose 5% (Q4 2015: up 5%), while revenue in China rose 6% year-on-year (Q4 2015: up 7%). Business in India rose 5% (Q4 2015: up 11%), while in Latin America revenue rose 10% (Q4 2015: up 15%), driven by Argentina and Chile.

Revenue by business line

Share price and market cap

Shares in Randstad closed down 3.14% to €46.16 (US$51.93). The company had a market cap of €8.45 billion (US$9.51 billion), according to Google.