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View All NewsRandstad Q3 revenue rises, reports stable growth in most regions
Third-quarter revenue at Randstad, the world’s second-largest staffing firm, rose 5% on an organic basis* to €4.98 billion (US$5.60 billion). Revenue growth on an actual basis was 10%. The company reported stable growth in most regions.
In North America, revenue rose 4% on an organic basis. However, revenue rose 10% on an organic basis in the Netherlands. Randstad’s “other European countries” and “rest of world” categories posted organic revenue growth of 11% each.
| (€millions) | Q3 2015 | Q3 2014 | % growth | % organic growth* | Q3 2015 (USD$millions) |
| Revenue | € 4,976.9 | € 4,516.3 | 10% | 5% | $5,595.6 |
| Gross profit | € 933.5 | € 835.4 | 12% | 6% | $1,049.6 |
| Gross margin | 18.8% | 18.5% | |||
| Operating profit | € 215.7 | € 167.9 | 28% | - | $242.5 |
| Net income | € 153.0 | € 113.3 | 35% | - | $172.0 |
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“Q3 was another quarter in which mid-single digit growth translated into a solid operational leverage,” says Randstad CEO Jacques van den Broek. “We have seen stable growth in most regions, while the focus on perm and HR services continued to pay off. The recent RiseSmart acquisition complements our offering, as technology is playing a more prominent role in the future of our company. This quarter, we celebrated our 55th anniversary, which clearly shows that we have been able to adapt to the ever changing environment. We continue to strengthen the foundations for the next 55 years.”
Revenue by geography
| (€millions) | Q3 2015 | Q3 2014 | % growth | % organic growth* | Q3 2015 (USD$millions) |
| North America | € 1,174.8 | € 964.8 | 22% | 4% | $1,320.9 |
| France | € 752.8 | € 727.5 | 3% | 3% | $846.4 |
| Netherlands | € 790.2 | € 721.6 | 10% | 10% | $888.4 |
| Germany | € 527.3 | € 517.9 | 2% | 2% | $592.9 |
| Belgium & Luxembourg | € 363.0 | € 353.8 | 3% | 1% | $408.1 |
| Iberia | € 319.7 | € 290.8 | 10% | 8% | $359.4 |
| United Kingdom | € 227.4 | € 203.7 | 12% | 1% | $255.7 |
| Other European countries | € 411.9 | € 357.9 | 15% | 11% | $463.1 |
| Rest of the world | € 409.8 | € 378.3 | 8% | 11% | $460.7 |
Revenue by business line
| (€millions) | Q3 2015 | Q3 2014 | % growth | % organic growth* | Q3 2015 (USD$millions) |
| Staffing | € 2,918.0 | € 2,680.5 | 9% | 5% | $3,280.8 |
| Inhouse Services | € 1,089.7 | € 958.5 | 14% | 9% | $1,225.2 |
| Professionals | € 969.2 | € 877.3 | 10% | 4% | $1,089.7 |
North America
Randstad’s US business grew 5% on an organic basis. Randstad Sourceright North America reported 17% net fee revenue growth, and spend under management within MSP was up 18% due to expansion of existing programs and significant new customer wins. Canadian revenue fell 4% on an organic basis.
France
Revenue growth was 3% on an organic basis, but perm fees were up 23% compared to last year.
Netherlands
Dutch revenue rose 10% on an organic basis.
Iberia
Spanish revenue rose 12% on an organic basis, but revenue fell 2% in Portugal as a result of a focus on client profitability.
United Kingdom
Randstad reported its construction/engineering and education businesses continued to perform well in an increasingly challenging market.
Other European countries
Italian revenue growth rose 20% on an organic basis, Polish revenue rose 7%, Swiss business was flat and Nordics business rose 11%.
Rest of the world
In Japan, revenue rose 6% on an organic basis. Revenue in Australia/New Zealand rose by 11%, Chinese revenue rose 27%, Indian revenue rose 16%, and Latin American revenue rose 15% driven by Argentina and Chile.
Share price and market cap
Shares in Randstad rose 5.02% to €54.37 in later afternoon trading in Europe. The company has a market cap of €9.81 billion.
*Organic change is measured excluding the impact of currencies, acquisitions, disposals and reclassifications.