Randstad Holding nv, the world’s second-largest staffing firm, reported fourth-quarter revenue rose across most of its major markets — including North America — with the notable exception of France.

Fourth-quarter revenue rose 5% year over year to €4.50 billion (US$5.46 billion); however, it rose 3% on an organic basis — which excludes impact of currencies, acquisitions, disposals and reclassifications. North American revenue rose 6% on an organic basis and French revenue fell 8% on an organic basis.

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“2014 was a successful year, especially with accelerating growth in North America and the Netherlands, and stable overall trends in Q4. The growth in January 2015 is also encouraging, especially as France seems to improve," said CEO Jacques van den Broek. “Our growth rate in permanent placements remains solid and the attention to commercial activities is paying off. A job well done by our people across the globe. I trust that we will be able to further improve as a company, and we are in excellent shape to face any future challenges.”

Revenue by geography

Revenue by business line

Share price and market cap

Shares in Randstad rose 7.33% today to €51.44. The company has a market cap of €9.26 billion, according to Google.

North America

• Organic revenue growth per working day rose 6% year over year and reported revenue rose 13%. Randstad’s combined US businesses grew 7% while Canada’s grew 1%. The gross margin increased due to mix impact, driven by strong growth of 18% in perm fees.
• Randstad Sourceright North America revenue rose 12%. Spend under management within MSP was up 61%.
• In Canada, revenue rose 1%, driven by a 5% increase in Randstad’s professionals business. This was offset by a 4% decline in staffing and inhouse business.
• EBITA margin for the region increased to 5.3% from 4.6% on an underlying basis adjusted for integration costs and one-offs.

France

• Revenue fell 8% and perm fees declined 2%.
• Combined staffing and inhouse businesses revenue fell 9%. The decline was driven by further significant deterioration in the construction, aeronautics and logistics sectors, partially offset by higher demand in the automotive sector. Staffing was 10% below last year. Professionals business was down 1%, with demand in IT remaining weak and only partially offset by another good performance in healthcare.
• FTEs declined 1% compared to last year. EBITA margin increased to 5.7%, compared to 3.7% in Q4 2013.

Germany

• Revenue per working day dropped by 1%. Volume decline has been offset by a positive price effect of 4%. Wage cost increases and other regulatory changes impacted demand for temporary labor. In January, the top line was down 2%.
• Underlying German EBITA margin reached 3.3%.

Other European countries

• Across other European countries, revenue per working day rose 11%, driven by continued double-digit growth in Poland and Switzerland.
• In Italy, revenue rose 8%, led by the industrial segment. Inhouse business grew by 12%.
• Swiss business revenue rose 13% In Poland, revenue rose 17%, led by inhouse at 36%. In the Nordics, revenue grew by 5%, while revenue in the Czech Republic grew by 22% and in Turkey by 9%.
• EBITA margin for the Other European countries reached 4.9%, driven by improved profitability across most countries and by a positive outcome of a claim settlement.

Rest of world

• Overall revenue in the rest of the world grew 15% organically. Growth picked up across all the regions (Japan, Australia, China, and Latin America).
• Japan revenue rose by 8%, with growth in logistics and retail.
• Australia revenue rose 24%. Temp revenue accelerated further in business support and in the industrial segment. Perm fees were up 34% in the quarter, driven by banking and construction. In professionals, demand was led by the construction/engineering segment and IT.
• China revenue rose 41% with a good performance across the IT and manufacturing segments. Growth in permanent placements was up 65% in the quarter. Business in India grew by 6%.
• In Latin America, Argentinean business grew by 16%, where market conditions remain challenging due to high levels of inflation. Good gross profit growth was noted in Brazil.

* Organic change is measured excluding the impact of currencies, acquisitions, disposals and reclassifications. For revenue, the organic change has been adjusted for the number of working days. When calculating growth, the USG activities are included on a pro forma basis and there not excluded as acquisition effect.