Randstad (RAND: NV), today reported revenue for the first quarter ending 31 March 2018 of €5.6 billion, an increase of 7% on an organic basis compared with €5.5 billion a year ago.

Growth in the first quarter was led by Italy with organic growth of 19% in the first quarter.

The financial results for the first quarter were broken down as follows:

Randstad’s gross profit was impacted by adverse mix effects related to Monster. Currency effects had a negative impact on gross profit of €60 million compared to Q1 2017. Underlying EBITA increased organically by 7% to € 217 million.

"We started 2018 well, achieving sound organic revenue and even double-digit perm growth," CEO Jacques van den Broek said. "Overall market circumstances remained positive. We continue to outperform in most relevant markets, driven by our Tech & Touch strategy and strong operational execution. Nevertheless, we remain focused on the balance between growth and profitability. We support our consultants, clients and candidates in adopting and embracing digital where this works best, and so optimizing human interaction. Our global roll-out of digital initiatives such as workforce scheduling, data-driven sales and talent engagement is in full swing."

Revenue by Geography was as follows.

Revenue for the group’s combined US businesses was flat compared to last year. US Staffing and Inhouse Services grew by 2%. US Professionals revenue was down 3%. In Canada, revenue was up 7%. Permanent fees for North America grew 8%.

In the Netherlands, overall permanent fees were down 6%. The group’s Staffing and Inhouse Services businesses grew 4%, with growth still impacted by a focus on client profitability. Randstad’s Professionals business was up 8%.

In France, permanent fees were up 38% compared to last year. Staˆing/Inhouse Services revenue grew 10%. The group’s Professionals business was up 13%, driven by Expectra and healthcare.

In Germany, revenue was negatively impacted by regulation changes and strikes. Randstad’s combined Staffing and Inhouse Services business was up 6%, while Professionals was up 9%.

In Belgium & Luxembourg, revenue was up 9%, ahead of the market. The company’s Staffing and Inhouse Services business was up 9%, while the Professionals business was up 8%.

Italy recorded revenue growth of 19% compared to the prior year. In Iberia, revenue increased 11% with Staffing and Inhouse Services combined growing 11%. Spain was up 13% and Portugal was up 6%.

In the UK, revenue was up by 7%, while permanent fees were down by 14%. In the Nordics, revenue increased by 11%. Revenue in Switzerland was up 22%.

Within the Rest of the World region, Japan, revenue grew 11%. Revenue in Australia/New Zealand grew 6%, while revenue in China grew by 5% over the year. In India, revenue was down by 1%, while in Latin America revenue grew 32%, driven by Argentina and Brazil.

For the group’s global business, Randstad Sourceright continued to deliver double digit revenue growth, while Monster sales growth was down by 16%.

During the first quarter of 2018, the group disposed of its Monster activities in the Asia Pacific region, that resulted in a cash inflow of € 10 million.

Revenue by business line was broken down as follows.

In March 2018, revenue grew at a similar pace to the group’s Q1 rate. The development of volumes in early April broadly indicates a continuation of the Q1 growth rate. Randstad added that there will be an adverse 2.9% comparison base in Q2. Q2 2018 gross margin is expected to be broadly stable sequentially. For Q2 2018, Randstad expects a moderate increase in underlying operating expenses sequentially. There will be a positive 0.4 working day impact in Q2 2018.

As of last trade Randstad traded at €52.56, down 4.12% on the day and 9.27% above its 52-week low of 48.10, set on 29 August 2017. Based on its current share price the company has a market value of €10.17 billion.