Staffing firm Randstad reported today organic revenue per working day grew by 38.2% in Q2 2021  resulting in revenue of € 6,078 million. Compared to the same period two years prior, revenue was up 3%.

Permanent placement fees increased by 91% with Europe up 103% and North America up 116%.

Q2 2021 gross margin of 19.5% was up 80 basis points year over year due to mix effects while the EBITA margin was up 280 basis points. The company flagged its accelerated investments in FTEs and digital initiatives as well as building capacity in order to “drive profitable growth”.

“Positive momentum continued across all our geographies into the second quarter of 2021 and we delivered strong Group performance,” said CEO Jacques van den Broek. “Group revenue surpassed 2019 levels and we achieved solid profitability whilst continuing to invest in new growth opportunities. As a result, we welcomed more than 2,400 new colleagues to our global workforce. We are also continuing to roll out our global technology transformation, with Monster showing positive YoY momentum, and are excited to provide a better experience to both talent and employers using the combination of Randstad and Monster capabilities in the future”.

Revenue by Geography

In France, revenue was up 63% YoY and down 5% compared to Q2 2019. Permanent placement fees were up 94% compared to last year. Staffing/Inhouse Services revenue was up 71% YoY while the Professionals business was up 49% YoY. The French EBITA margin was 5.7% compared to -1.2% last year.

In the Netherlands, revenue was up 37% YoY and up 4% compared to Q2 2019. Overall permanent placement fees were up 50% YoY. The combined Staffing and Inhouse Services business was up 44% YoY while our Professionals business was up 17% YoY. EBITA margin in the Netherlands was 6.7% compared to 4.1% last year.

In Germany, revenue per working day was up 46% YoY and flat compared to Q2 2019. Permanent placement fees were up 66% compared to last year. The combined Staffing/Inhouse Services business was up 66% YoY while the Professionals business was down 6% YoY. EBITA margin in Germany was 1.7% compared to -1.0% last year.

In Belgium & Luxembourg, revenue was up 37% YoY and down 3% compared to Q2 2019. Permanent placement fees were up 82% compared to last year. The Staffing/Inhouse Services business was up 38% YoY. The EBITA margin was 5.5%, compared to 2.7% last year.

Revenue per working day in Italy was up 64% YoY and up 15% compared to Q2 2019. Overall permanent placement fees were up 181% YoY. EBITA margin was 6.3%, compared to 3.5% last year.

In Iberia, revenue per working day was up 45% YoY and down 4% compared to Q2 2019. Permanent placement fees were up 107% compared to last year. Staffing/Inhouse Services combined was up 59% YoY. Spain was up 59% YoY while, in Portugal, revenue was up 14% YoY. Overall EBITA margin was 5.5%, compared to 1.3% last year.

Across 'Other European countries', revenue per working day was up 29% YoY and up 5% compared to Q2 2019. In the UK, revenue was up 64% YoY while in the Nordics, revenue was up 20% YoY on an organic basis. Revenue in Randstad’s Swiss business was stable YoY. Overall EBITA margin for the 'Other European countries' region was 2.7% compared to -0.6% last year.

Total revenue in the 'Rest of the world' region increased by 20% organically YoY and by 16% compared to Q2 2019. In Japan, revenue grew 5% YoY. Revenue in Australia/New Zealand was up 33% YoY while revenue in China increased by 28% YoY and business in India was up 12% YoY. In Latin America, revenue grew 39% YoY primarily driven by Brazil and Argentina. Overall EBITA margin in the Rest of world region was 4.9%, compared to 4.8% last year.

For Randstad’s global business division, total organic revenue growth per working day was up 41% YoY and up 6% compared to Q2 2019. Randstad Sourceright revenue increased by 56% YoY, while Monster revenue was described as stable. Randstad’s global outplacement and reskilling platform RiseSmart declined by 7% YoY. Overall EBITA margin for the division came in at 0.6% compared to -4.1% last year.

Guidance

Looking ahead, van den Broek commented “As markets begin to recover, pre-pandemic trends such as talent scarcity are also returning. By providing in-depth data, technology and integrated services, we are playing an essential role for our clients by helping them to achieve a total talent management strategy. At the same time, the pandemic continues to touch the lives of many and the wellbeing and health of our employees is our highest priority”.

“Based on the strength of our performance in the first half we are optimistic for the remainder of 2021, although we are still exercising caution while pandemic-related instabilities and limited visibility remain”.

Randstad estimates that Q3 2021 gross margin is expected to be flat sequentially while operating expenses are expected to be slightly higher sequentially, reflecting the continued investments in line with our growth momentum in Q2 2021.

Share price and market cap

Shares in Randstad last traded at €62.32, down 6.43% on the day and 6.79% below its 52-week high of €66.86, set on 26 July 2021. The company has a market cap of €12.25 billion.