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View All NewsRandstad revenue up 7% on organic basis in Q2
Randstad Holding, the world’s second-largest staffing firm, reported revenue rose 13% in the second quarter. That equated to a 7% increase on an organic basis, which excludes the impact of currencies, acquisitions, disposals and reclassifications as well adjustment for working days.
The strongest organic growth was in the Netherlands, where revenue rose 15% on an organic basis. Iberia followed with 8% organic growth in revenue.
Organic revenue growth in North America was 5%.
Randstad also reported gross margin improved to 18.7% in the second quarter from 18.4% in the year-ago quarter.
| (€millions) | Q2 2015 | Q2 2014 | % growth | % organic growth* | Q2 2015 (USD$millions) |
| Revenue | € 4,815.8 | € 4,268.1 | 13% | 7% | $5,319.7 |
| Gross profit | € 902.9 | € 786.7 | 15% | 7% | $997.4 |
| Gross margin | 18.7% | 18.4% | |||
| Operating profit | € 178.7 | € 137.2 | 30% | - | $197.4 |
| Net income | € 130.2 | € 94.1 | 38% | - | $143.8 |
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“Our solid results confirm that we are on track to deliver on our ambition, driven by the strong execution of our 29,000 colleagues across the globe,” Randstad CEO Jacques van den Broek said. “Growth in Europe is accelerating and our US business continues to do well. I am proud of the market outperformance by our people in many of our operations. Furthermore, we see continued growth in permanent placements and also in managed services and recruitment process outsourcing, both part of Randstad Sourceright. Looking at the progress we have made in the past 12 months, I am confident we can do even better in the future.”
Revenue by geography
| (€millions) | Q2 2015 | Q2 2014 | % growth | % organic growth* | Q2 2015 (USD$millions) |
| North America | € 1,173.4 | € 910.9 | 29% | 5% | $1,296.2 |
| France | € 746.1 | € 719.3 | 4% | 4% | $824.2 |
| Netherlands | € 751.2 | € 677.8 | 11% | 15% | $829.8 |
| Germany | € 479.9 | € 479.4 | 0% | 0% | $530.1 |
| Belgium & Luxembourg | € 328.9 | € 311.0 | 6% | 6% | $363.3 |
| United Kingdom | € 230.3 | € 203.8 | 13% | 0% | $254.4 |
| Iberia | € 294.8 | € 270.5 | 9% | 8% | $325.6 |
| Other European countries | € 390.8 | € 342.1 | 14% | 9% | $431.7 |
| Rest of the world | € 420.4 | € 353.3 | 19% | 12% | $464.4 |
Revenue by business line
| (€millions) | Q2 2015 | Q2 2014 | % growth | % organic growth* | Q2 2015 (USD$millions) |
| Staffing | € 2,800.3 | € 2,524.9 | 11% | 6% | $3,093.3 |
| Inhouse Services | € 1,055.9 | € 896.6 | 18% | 12% | $1,166.4 |
| Professionals | € 959.6 | € 846.6 | 13% | 3% | $1,060.0 |
North America
- In North America, organic revenue growth per working day was 5% above last year. Gross profit growth in the quarter was 10%, partially driven by 16% growth in perm fees.
- The company’s combined US businesses grew 6% in the second quarter with US staffing/inhouse growing by 7%.
- Randstad’s US Professionals business posted a 6% increase in revenue.
- In Canada, revenue declined 2%. The market was described as challenging.
- Randstad Sourceright North America reported 25% net fee growth. Spend under management within MSP was up 49%.
France
- French revenue grew by 4%. Staffing and inhouse revenue increased 4%.
Netherlands
- In the Netherlands, revenue per working day grew by 15% compared to last year (Q1 2015: up 10%). Overall perm fee growth was 21%.
Rest of the world
- Overall revenue in the “rest of the world” region grew by 12% organically. In Japan, revenue grew by 6%. Revenue in Australia grew by 16% and revenue from China grew by 20%.
Share price and market cap
Shares in Randstad fell 1.28% to close at €60.97. The company had a market cap of €11.16 billion, according to Google Finance.
* 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.