Randstad (RAND: NV), the world’s largest staffing firm, today reported revenue for the fourth quarter ending 31 December 2022 of €7.00 billion, an increase of 2% on an organic basis compared with €6.75 billion a year ago. On a reported basis, revenue was up 3.7%, of which working days had a negative impact of 1.9% while currency effects had a positive effect of 0.9%. M&A positively contributed 2.3%.

Revenue for the full year stood at €27.57 billion, up 8% organically over the year.

CEO Sander van ‘t Noordende, said, "Randstad delivered an outstanding performance in 2022, driven by Inhouse, Professionals, perm and RPO. In the fourth quarter, we delivered solid growth with strong profitability.”

“Robust levels of demand from clients and persistent levels of talent scarcity underpinned our full year performance and the improvements we delivered in profitability and margin show the benefits of our firm focus on cost management, value-based pricing and business mix,” Noordende said. “Client activity moderated in the fourth quarter, and this trend has continued into 2023. However, our deep understanding of talent and clients, together with our experienced leadership team positions us well to navigate the macroeconomic environment.”

The group's underlying earnings before interest, taxes and amortisation (EBITA) were €364 million in the quarter, according to Reuters, this was well above the €329 million expected by analysts in a company-compiled poll.

Revenue by Geography

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

In North America, revenue was down 5% organically. (Q3 2022: up 6%). Perm fees were down 12% (Q3 2022: up 15%). In Q4 2022, revenue of the combined US businesses was down 6% (Q3 2022: up 6%). US Staffing/Inhouse Services was down 10% (Q3 2022: up 4%). US Professionals revenue was up 1% (Q3 2022: up 8%). In Canada, revenue was stable (Q3 2022: up 9%).

In the Netherlands, revenue was up 2% (Q3 2022: stable). Overall perm fees were up 30% (Q3 2022: up 53%). The combined Staffing and Inhouse Services business was down 2% (Q3 2022: down 3%), while the Professionals business was up 21% (Q3 2022: up 15%).

Revenue per working day in Italy was up 4% (Q3 2022: up 9%). Overall perm fees were up 11% (Q3 2022: up 29%).

In Germany, revenue per working day was up 9% (Q3 2022: up 5%). Perm fees were up 40% compared to last year (Q3 2022: up 41%). The combined Staffing/Inhouse Services business was up 9% (Q3 2022: up 5%), while Professionals was up 9% (Q3 2022: up 6%).

In Belgium & Luxembourg, revenue was down 2% (Q3 2022: stable). The Staffing/Inhouse Services business was down 5% (Q3 2022: stable).

In Iberia, revenue per working day was down 2% (Q3 2022: up 8%). Perm fees were up 9% compared to last year (Q3 2022: up 47%). Staffing/Inhouse Services combined was down 3% (Q3 2022: up 8%). Spain was down 4% (Q3 2022: up 8%), while in Portugal revenue was up 6% (Q3 2022: up 10%).

Across 'Other European countries', revenue per working day was up 7% (Q3 2022: up 6%). In the UK, revenue was up 6% (Q3 2022: up 3%), while in the Nordics, revenue was up 6% on an organic basis (Q3 2022: up 12%). Revenue in the Swiss business was up 1% (Q3 2022: up 5%).

Total revenue in the 'Rest of the world' region increased by 10% organically (Q3 2022: up 11%). In Japan, revenue grew 11% (Q3 2022: up 9%). Revenue in Australia/New Zealand was up 8% (Q3 2022: up 12%), while revenue in China decreased by 18% (Q3 2022: down 4%). The group’s business in India was up 15% (Q3 2022: up 18%), while in Latin America revenue was up 16% (Q3 2022: up 9%).

Total organic revenue growth per working day was up 5% (Q3 2022: up 17%). Randstad Sourceright revenue increased by 7% (Q3 2022: up 21%), while Monster revenue was down 12% (Q3 2022: down 4%).

Revenue by business line

Randstad said the macro-economic environment softened across its markets in the fourth quarter, which translated into lower hiring activities from its clients. This trend has continued into the start of 2023. January revenue was modestly down over the year organically.

“Although we remain cautious as visibility remains limited, Randstad is well positioned to respond quickly and effectively, through our diverse portfolio and high operational adaptability and flexibility,” the group stated.

Q1 2023 gross margin and operating expenses are both expected to be broadly in line sequentially. There will also be a positive 0.3 working day impact in Q1 2023.

Randstad also announced a number of new members to its leadership team and Executive Board.

Randstad nominated Jorge Vazquez as Chief Financial Officer and member of the Executive Board, as the successor to Henry Schirmer following his successful tenure as CFO.

The Supervisory Board and Schirmer have jointly agreed that he will step down following Randstad’s Annual General Meeting on 28 March 2023. To ensure a smooth handover and transition of responsibilities, Schirmer will be closely involved in Q1 2023 results-process and will then act as a senior advisor to Randstad for the following 12 months.

Vazquez is an experienced finance executive, having held finance, strategy and commercial roles at Randstad Group-level and in local markets since joining in 2011. Vazquez is the former Randstad Group Controller and Head of Strategy and more recently Chief Executive Southern Europe and Latin America.

As part of the future leadership composition, Randstad also nominated Myriam Beatove Moreale, Chief Human Resources Officer to the Executive Board, having joined the company in 2022.

Herman Nijns, currently the CEO Randstad Belgium, Luxembourg and the Nordics has been appointed as Chief Executive Southern Europe and Latin America succeeding Jorge Vazquez on 1 March 2023.

“Following his success as Chief Financial Officer and member of the Executive Board, the Supervisory Board, in joint agreement with Henry, decided that the new leadership composition created a natural moment of transition,” Wout Dekker, Chair of the Supervisory Board said. “We led a thorough process to find the right successor and are confident that Jorge has the right background and deep company knowledge to succeed in this role.”

“We would like to thank Henry for his dedication and great contribution to Randstad, in particular his successful navigation of the Covid-19 pandemic, his leadership to further promote the ESG agenda, taking the finance function to the next level and delivering years of strong financial performance,” Dekker said. “We are also very pleased to appoint Myriam to the Executive Board, as the HR function is of strategic importance to Randstad. I extend them both a very warm welcome to the Executive Board. Finally, I welcome Herman to the Executive Leadership Team.”

These nominations are subject to shareholder approval at the AGM on 28 March 2023. Following approval at the AGM, the Executive Board will consist of Sander van 't Noordende, Chris Heutink, Jorge Vazquez and Myriam Beatove.

Randstad shares last traded at €60.58, up 1.47% on the day and 10.25% below its 52-week high of €67.50, set on 16 February 2022. The company has a market cap of €10.98 billion.