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View All NewsRandstad revenue rises 16% on organic basis, cites growth in perm and RPO
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).