Randstad (RAND: NV) today reported revenue for the second quarter ending 30 June 2017 of €5.8 billion, an increase of 9% on an organic basis compared with €5.1 billion a year ago.

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

In Q2 2017, gross margin stood at 20.4%, up from 18.9% the previous year. Currency effects had a positive impact on gross profit of €3 million compared to Q2 2016.

Underlying EBITA increased organically by 7% to €262 million, impacted by fewer working days. Costs during the quarter were impacted by continued investments in the group’s digital strategy including extra marketing spend at newly acquired Monster.

"In Q2, our organic sales growth accelerated to the highest level since 2011, driven by double-digit growth in Europe," Randstad CEO Jacques van den Broek, said. "Also momentum in the Rest of the world region improved versus Q1, while growth in our North American business was stable. We are satisfied with the progress of our acquisitions and remain very excited about their future contribution to the Group. Supporting people and organizations in realizing their true potential is Randstad's role in society. We are committed to go above and beyond to make our candidates and clients successful. To this end we are working hard on our digital transformation. This is showing the first good signs in margin development in our Dutch Professionals business as technology supports our consultants, as well as in our French perm business, by providing additional services through better insights based on big data".

Randstad achieved revenue growth across all of its geographical major markets; with revenue in the United Kingdom up slightly.

In the company’s largest market, North America, revenue growth was up 1% on an organic basis and permanent fees grew 3%. In Q2 2017, the group’s combined US business revenue was flat (Q1 2017: flat). US Staffing/Inhouse grew by 2% (Q1 2017: up 2%). US Professionals revenue was down 2% (Q1 2017: down 2%). In Canada, revenue was up 9% (Q1 2017: up 6%), showing continued acceleration. EBITA margin for the region came in at 6.1%, stable versus Q2 2016.

In the Netherlands, revenue was up 2% over the year, organically. Overall permanent fees were up 4%, with Staffing and Inhouse businesses improved to 3%, with growth impacted by price pressure. The Professionals business was flat in revenues, Underlying EBITA margin in the Netherlands was 5.8%, flat on the year.

In France, revenue growth was 14% (Q1 2017: 9%), ahead of the market. Permanent fees were up 43% compared to last year while Staffing and Inhouse revenue increased 13%. The Professionals business was up 19%, driven by Expectra and healthcare. EBITA margin was 6.4%, up from 5.9% last year.

In Germany, revenue per working day was up 9% on an organic basis. Combined Staffing and Inhouse business was up 8% and Professionals was up 13%. EBITA margin in Germany declined to 4.2%, compared to 5.0% last year, reflecting an adverse working day effect.

In Belgium & Luxembourg, revenue was up 14%, ahead of the market. Staffing/Inhouse business was up 14%, while the Professionals business was up 10%. EBITA margin moved up to 6.5%, from 6.3% last year.

In Iberia, revenue increased 16%, with Staffing/Inhouse combined growing 16%, and professionals was up 8%. Spain was up 19%, while the group’s focus on permanent placements was up 15%. In Portugal, revenue improved by 8%, organically. Overall EBITA margin was 5.1% in Q2 2017, compared to 4.5% in the same period last year.

Revenue per working day in Italy (pro forma, including Obiettivo Lavoro) grew by 29% compared to the prior year, organically. EBITA margin improved to 5.8%, from 5.2% last year (or 4.8% pro forma). Randstad states that the integration of Obiettivo Lavoro is progressing well and ahead of expectations.

Across 'Other European countries', revenue per working day grew 11%, organically. In the UK, revenue was up by 2%, while perm fees were up by 3%. In the Nordics, sales increased by 11% on an organic basis, while the Proffice integration is well on track. Revenue in the group’s Swiss business was up 22% year-on-year. In Poland, revenue growth improved to 12%.  Overall EBITA margin for the 'Other European countries' region declined to 2.6%, driven by an adverse working day impact in the Nordics.

Overall revenue in the 'Rest of the world' region accelerated to 12% growth organically. In Japan, revenue grew 6%. Revenue in Australia/New Zealand grew 14%, while revenue in China grew 10%, over the year. The group’s business in India grew by 11%, while in Latin America, revenue grew 21%, driven by Argentina and Chile. Overall EBITA margin in this region was 2.6%, compared to 2.2% last year.

In the Global Business segment, overall revenue growth per working day was up by 11%, organically, mainly driven by Randstad Sourceright. Monster sales growth was down by 16%, in line with Q1 2017. Overall EBITA margin came in at -2.3% compared to 2.4% last year, reflecting continued investments related to the group’s digital strategy including extra marketing spend at Monster.

Randstad operates three primary business segment: Staffing, Professionals, and Inhouse Services, with a breakdown of revenue in Q2 as follows:

Looking forward, the company stated that revenue grew at a similar pace as it exited the quarter and that the development of volumes in early July indicate a continuation of the Q2 growth rate. However, Q3 gross margin is expected to be slightly down sequentially. Randstad stated that M&A activity during the third quarter will be limited.

As of last trade Randstad traded at €52.36, up strongly by 6.37% on the day and 9.44% below its 52-week high of €57.82, set on 14 February 2017. Based on its current share price the company has a market value of €9.01 billion.