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Randstad revenue rises 16% on organic basis, cites growth in perm and RPO

February 15, 2022

Fourth-quarter revenue at Randstad, the world’s largest staffing firm, rose 16% on an organic basis while gross margin improved by 90 basis points. North America perm placement fees for the fourth quarter were up 87% year over year.

“We delivered strong sector and regional performances across our portfolio, with market outperformance in the majority of our markets and significant growth in perm and RPO,” CEO Jacques van den Broek said.

Netherlands-based Randstad reported permanent placement revenue was up 69% year over year in the fourth quarter while RPO revenue rose 153%.

(€millions) Q4 2021 Q4 2020 % change % organic change Q4 2021 (US$millions)
Revenue                              6,754                              5,693 19% 16%                                    7,648
Gross profit                               1,379                              1,108 24% 21%                                    1,562
Gross margin 20.4% 19.5% - -  - 
Net income 240 208 15% -                                       272

North American revenue was up year over year by 14% per working day in the fourth quarter. US revenue rose 12% per working day; in comparison, US revenue was up 16% year over year per working day in the third quarter.

Meanwhile, Canadian revenue was up 28% per working day in the fourth quarter. It had also risen by 28% year over year in the third quarter.

Revenue by geography

(€millions) Q4 2021 Q4 2020 % change % organic change Q4 2021 (US$millions)
North America                              1,298                              1,093 19% 14%                                    1,470
France                                 957                                 872 10% 10%                                    1,084
Netherlands                                 915                                 778 18% 16%                                    1,036
Germany                                 503                                 437 15% 15%                                       570
Italy                                 558                                 423 32% 32%                                       632
Belgium & Luxembourg                                 423                                 389 9% 7%                                       479
Iberia                                 413                                 359 15% 15%                                       468
Other European countries                                 628                                 534 18% 13%                                       711
Rest of the world                                 690                                 543 27% 20%                                       781
Global businesses                                 369                                 265 39% 36%                                       418

Permanent placement fees in North America were up 87% year over year in the fourth quarter. They had risen by 95% year over year in the third quarter.

Randstad’s US Professionals revenue rose by 14% year over year in the fourth quarter while US staffing/inhouse services revenue increased by 11%.

Revenue by category

(€millions) Q4 2021 Q4 2020 % change % organic change Q4 2021 (US$millions)
Staffing                              3,252                              2,780 17% 16%                                    3,683
Inhouse Services                              1,676                              1,456 15% 13%                                    1,898
Professionals                              1,457                              1,192 22% 20%                                    1,650
Global businesses                                 369                                 265 39% 36%                                       418

Monster revenue was up 12% year over year while Randstad Sourceright revenue was up 44%.

Full-year results

(€millions) FY 2021 FY 2020 % change % organic change FY 2021 (US$millions)
Revenue                            24,635                           20,718 19% 20%                                 27,897
Gross profit                              4,873                              3,970 23% 24%                                    5,518
Gross margin 19.8% 19.2% - - -
Net income                                 768                                 304 153% -                                       870

Guidance

Organic revenue growth on a year-over-year basis was broadly in line with the fourth quarter, continuing positive momentum.

Share price and market cap

Shares in Randstad set a new 52-week high today when they reached €66.88 (US$75.72); they closed at €65.88 (US$74.58), according to FT.com. The company had a market cap of €11.57 billion (US$13.10 billion).