Daily News

View All News

Randstad’s Q2 revenue rises 38%, surpasses pre-pandemic levels

July 27, 2021

Global staffing giant Randstad nv reported second-quarter revenue rose 38% year over year on an organic basis. The Netherlands-headquartered firm also said revenue was up from pre-pandemic levels with a 3% increase compared to the second quarter of 2019.

“Group revenue surpassed 2019 levels and we achieved solid profitability whilst continuing to invest in new growth opportunities,” CEO Jacques van den Broek said.

Randstad reported perm fees rose by 91% year over year on an organic basis. In addition, it reported the Monster job board business is showing positive year-over-year momentum.

Randstad’s measure of organic growth excludes the impact of currencies, acquisitions, disposals and reclassifications. Revenue growth has also been adjusted for working days.

(€millions) Q2 2021 Q2 2020 % change % organic change Q2 2021 (US$millions)
Revenue                              6,078                              4,437 37% 38%                                    7,235
Gross profit                               1,183                                 830 43% 45%                                    1,408
Gross margin 19.5% 18.7% - -  - 
Operating profit 239 (69) nm -                                       285
Net income 176 (57) nm -                                       210

As the recovery continues, van den Broek noted trends such as talent scarcity.

“At the same time, the pandemic continues to touch the lives of many and the well-being and health of our employees is our highest priority,” he said. “This quarter, in particular, I am proud of the active role we played in the pandemic humanitarian response in India.”

Revenue by geography

(€millions) Q2 2021 Q2 2020 % change % organic change Q2 2021 (US$millions)
North America                              1,074                                 944 14% 23%                                    1,279
France                                 927                                 559 66% 63%                                    1,104
Netherlands                                 870                                 624 39% 37%                                    1,036
Germany                                 478                                 322 48% 46%                                       569
Belgium & Luxembourg                                 393                                 279 41% 37%                                       468
Italy                                 501                                 301 66% 64%                                       596
Iberia                                 363                                 245 48% 45%                                       432
Other European countries                                 576                                 437 32% 29%                                       686
Rest of the world                                 602                                 507 19% 20%                                       717
Global businesses                                 294                                 219 34% 41%                                       350

US revenue rose 21% on an organic basis while Canadian revenue rose 50%. Randstad reported perm fees in North America rose 116%.

Randstad’s US staffing/inhouse services revenue rose by 33% in the second quarter and US professionals revenue rose 6%.

Revenue by category

(€millions) Q2 2021 Q2 2020 % change % organic change Q2 2021 (US$millions)
Staffing                              3,055                              2,086 46% 45%                                    3,637
Inhouse Services                              1,439                              1,013 42% 43%                                    1,713
Professionals                              1,290                              1,119 15% 22%                                    1,536
Global businesses                                 294                                 219 34% 41%                                       350

Randstad Sourceright revenue increased by 56% year over year in the second quarter while Monster revenue remained stable. RiseSmart, the company’s outplacement and reskilling platform, saw revenue fall by 7% year over year.

Guidance

Volume trends in July indicate continued positive momentum, the company reported.

Share price and market cap

Shares in Randstad closed at €62.58 (US$73.79) today, down 6.40% from their 52-week high set yesterday, according to FT.com. The company had a market cap of €12.25 billion (US$14.44 billion).