Randstad (RAND: NV), the world’s largest staffing firm, today reported revenue for the fourth quarter ending 31 December 2023 of €6.18 billion. Organic revenue per working day was down 8.6% year-on-year in Q4 2023. Reported revenue was down 12%, of which working days had a negative impact of 0.8% while currency effects had a negative effect of 3%. M&A positively contributed 0.7%.

Revenue for the full year stood at €25.42 billion, down 6% on an organic basis when compared to FY 2022.

CEO Sander van ‘t Noordende commented, "In Q4 2023, we delivered another resilient performance in a challenging environment. We adapted well throughout the year, as demonstrated by the solid margin and strong cash flow performance achieved in FY2023. As talent scarcity prevails, we are confident that the ‘partner for talent’ strategy we set out at our Capital Markets Day in October positions us well to capitalize on the exciting opportunities in our markets.”

EBITDA fell by 26% on a reported basis to €265 million, matching analysts' average forecast in a company-provided poll according to Reuters. However, revenue came below analysts’ expectations as they had expected €6.24 billion.

“The global macroeconomic environment remains uncertain and this is influencing the decision-making of clients and talent. That said, labour markets remain tight and we continue to demonstrate our ability to adapt and perform in these changing market conditions,” van‘t Noordende said.

Corporate headcount declined by 11% from 46,760 employees in Q4 2022 to 41,720 in Q4 2023.

Revenue by Geography

Percentage changes below are on an organic basis, unless otherwise noted.

In North America, revenue was down 15%. Permanent fees were down 31% over the year. In Q4 2023, revenue of the combined US businesses was down 15%. US Staffing/Inhouse Services was down 17%. US Professionals revenue was down 12%. In Canada, revenue was down 11%.

Across Northern Europe, in the Netherlands, revenue was down 8%. Overall permanent fees were down 28%. The combined Staffing and Inhouse Services business was down 3%, while the Professionals business was down 29%.

In Germany, revenue was down sharply by 18% over the year. Permanent fees were down 29% compared to last year. The combined Staffing/Inhouse Services business was down 20%, while Professionals was down 8%.

In Belgium and Luxembourg, revenue was down 6%. The Staffing/Inhouse Services business was down 4% over the year.

Across other Northern European countries, revenue per working day was down 4%. In the Nordics, revenue was down 18%, while in Switzerland, revenue was down 11%. Revenue in Poland was up 8%.

In France, revenue was down 5%. Permanent fees were down 16% compared to last year. Staffing/Inhouse Services revenue was down 8% while the Professionals business was up 3%. Revenue in Italy was down 2%. Overall perm fees were up 9% over the year.

In Iberia, revenue per working day was flat over the year. Permanent fees were down 2% compared to last year. Staffing/Inhouse Services combined was flat year-on-year. Spain was up 1% over the year while, in Portugal, revenue was down 6%.

Across other Southern European countries, UK & Latin America, revenue per working day was down 9%. In the UK, revenue was down 17%, while in Latin America revenue was up 11%.

Total revenue in the Asia Pacific region was down 3% organically. In Japan, revenue was up 4%. Revenue in Australia/New Zealand was down 9%, while the business in India was up 1%.

Total organic revenue per working day was down 18%. Enterprise solutions revenue was down 18% over the year. While outplacement grew, the RPO business declined and Monster continued to slide with revenue down 12%.

Revenue by Business Line

Total revenue of permanent placements in the revenue categories 'Staffing', 'Inhouse', and 'Professionals', amounted to €123 million in Q4 2023. Revenue of recruitment process outsourcing within Global Businesses amounted to €75 million in Q4 2023.

In its outlook, the company said the challenging macroeconomic conditions it experienced in the fourth quarter translated into continued lower hiring activities from its clients. These conditions continued into early 2024, with January organic revenue growth in line with Q4 2023 trends.

Q1 2024 gross margin is expected to be modestly lower sequentially due to seasonality. Q1 2024 operating expenses are expected to be marginally higher sequentially.

Randstad stated that visibility remains limited and it remains cautious as it continues to work with scenario planning. “We will continue to respond quickly and effectively, through our diverse portfolio of services, and operational adaptability provided by our field steering model,” the company said, adding that there will be a negative 0.8 working day impact in Q1 2024.

Randstad today also announced that it commenced its fourth tranche of its €400 million full share buyback program as announced on 14 February 2023. The purpose of the program is to reduce the capital of Randstad, by cancelling all of the ordinary shares purchased through the program.

Randstad shares last traded at €54.06, up 1.46% on the day and 18.29% above the 52 week low of €45.70 set on 31 May 2023. The company has a market cap of €9.49 billion.