Randstad NV reported global revenue rose 2% in the first quarter; the increase was 7% on an organic basis, which excludes the impact of currency, acquisitions and divestitures and adjusts for the number of working days. North America revenue was up 1% organically. In addition, revenue from the company's Randstad Sourceright business — which includes MSP and RPO — rose by double digits in the first quarter, but Monster sales growth fell by 16%.

Gross margin narrowed, and Randstad noted that temporary staffing had a 30-basis-point negative effect caused by the impact of working days, a higher sickness rate and changes in French tax law.

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“Overall market circumstances remained positive,” CEO Jacques van den Broek said. “We continue to outperform in most relevant markets, driven by our Tech & Touch strategy and strong operational execution. Nevertheless, we remain focused on the balance between growth and profitability.”

Revenue by geography

Fourth-quarter growth rates below are organic:

North America

• Revenue edged up 1%. Perm fees rose 8%. Revenue in Randstad’s combined US businesses was flat; US staffing/inhouse services grew by 2%. US Professionals revenue fell 3%. In Canada, revenue rose 7%.

Netherlands

• Revenue rose 5%. Overall perm fees fell 6%. Staˆing and inhouse services businesses grew 4%, with growth still impacted by a strong focus on client profitability. Professionals business rose 8%.

France

• Revenue rose 10%. Perm fees rose 38% while staˆing/inhouse services revenue rose 10%. Professionals business was up 13%, again driven by Expectra and healthcare.

Germany

• Revenue per working day rose 7%, negatively impacted by regulation changes and strikes. Combined staffing and inhouse services business increased 6%, while professionals rose 9%.

Belgium & Luxembourg

• Revenue rose 9%. Staffing/inhouse services business was up 9%, while the professionals business was up 8%.

Iberia

• Revenue increased 11% with staˆing/inhouse services combined growing 11%. Spain was up 13%. In Portugal, revenue improved by 6%.

Other European countries

• In the Other European Countries segment, revenue grew 11%. In the UK, revenue was up by 7%, but perm fees fell by 14%. In the Nordics, revenue increased by 11%. Revenue in Randstad’s Swiss business was up 22% year over year.

Rest of the world

• Overall revenue in the Rest of the World segment grew by 11% organically. In Japan, revenue grew 11%. Revenue in Australia/New Zealand grew 6%, while revenue in China grew by 5%. Randstad’s business in India was down by 1%, while in Latin America revenue grew 32%, driven by Argentina and Brazil.

Global business

• Overall revenue growth was flat. Randstad Sourceright continued to deliver double-digit revenue growth, while Monster sales growth was down by 16%.

Share price and market cap

Shares in Randstad fell 2.77% at close to €53.28 and the company had a market cap of €9.77 billion (US$11.87 billion).