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View All NewsRandstad revenue falls 3% in fourth quarter; US revenue down
Randstad nv, one of the world’s largest staffing firms, reported fourth-quarter revenue fell 3% year over year on an organic basis, although gross margin improved.
“Our group revenue was slightly down year-on-year organically, reflecting ongoing macro and political uncertainties, primarily in Northern Europe,” CEO Jacques van den Broek said.
North American revenue fell 2% year over year on an organic basis in the fourth quarter.
| (€millions) | Q4 2019 | Q4 2018 | % change | % organic change* | Q4 2019 (US$millions) |
| Revenue | € 5,995 | € 6,101 | -2% | -3% | $6,714 |
| Gross profit | € 1,201 | € 1,207 | 0% | -2% | $1,345 |
| Gross margin | 20.0% | 19.8% | - | - | - |
| Operating profit | € 230 | € 162 | 42% | - | $258 |
| Net income | € 167 | € 197 | -15% | - | $187 |
US revenue fell 3% organically year over year in the fourth quarter. The decline was in Randstad’s US “staffing/inhouse services” segment, where revenue fell 5% organically. Revenue was up 1% in its “US professionals” segment.
Canadian revenue rose 1% organically in the fourth quarter.
Randstad Sourceright revenue, which includes MSP and RPO services, fell by 1% organically year over year in Q4 while Monster revenue was down 16%. Monster revenue had fallen by 15% year over year in the third quarter. Randstad Sourceright and Monster are included in the company’s “global businesses” segment.
Revenue by geography
| (€millions) | Q4 2019 | Q4 2018 | % change | % organic change* | Q4 2019 (US$millions) |
| North America | € 1,126 | € 1,114 | 1% | -2% | $1,261 |
| France | € 928 | € 925 | 0% | 1% | $1,039 |
| Netherlands | € 815 | € 901 | -10% | -10% | $913 |
| Germany | € 482 | € 566 | -15% | -15% | $540 |
| Belgium & Luxembourg | € 396 | € 416 | -5% | -3% | $443 |
| Italy | € 416 | € 423 | -2% | -1% | $466 |
| Iberia | € 380 | € 370 | 3% | 1% | $426 |
| Other European countries | € 572 | € 573 | 0% | -1% | $641 |
| Rest of the world | € 581 | € 507 | 15% | 9% | $651 |
| Global businesses | € 299 | € 306 | -2% | -4% | $335 |
By business line, revenue was up 1% in professionals, globally, but revenue fell across other business lines.
Revenue by business line
| (€millions) | Q4 2019 | Q4 2018 | % change | % organic change* | Q4 2019 (US$millions) |
| Staffing | € 3,017 | € 3,147 | -4% | -5% | $3,379 |
| Inhouse Services | € 1,347 | € 1,361 | -1% | -2% | $1,508 |
| Professionals | € 1,332 | € 1,287 | 3% | 1% | $1,492 |
| Global businesses | € 299 | € 306 | -2% | -4% | $335 |
For the full year, revenue was down 2% organically, but gross margin improved.
Full-year results
| (€millions) | 2019 | 2018 | % change | % organic change | 2019 (US$millions) |
| Revenue | € 23,676 | € 23,812 | -1% | -2% | $26,514 |
| Gross profit | € 4,726 | € 4,703 | 0% | -1% | $5,292 |
| Gross margin | 20.0% | 19.8% | |||
| Operating profit | € 859 | € 842 | 2% | - | $962 |
| Net income | € 606 | € 708 | -14% | - | $679 |
Randstad measures organic change by excluding the impact of currencies, acquisitions, disposals and reclassifications. In addition, organic change in revenue is adjusted for working days.
Guidance
Randstad reported revenue was up 3% to 4% in January, and for the first quarter it expects gross margin to be slightly lower than the fourth due to seasonality.
Share price and market cap
Shares in Randstad closed down 0.68% to €52.30 (US$57.20) in Europe; the company had a market cap of €9.65 billion (US$10.55 billion), according to FT.com.