News

Randstad Reports 30% Fall in Second-Quarter Net Profit

4.6

Andrew R. Michaud

August 14, 2023

By Christian Moess

Randstad, the Dutch staffing company, has reported a significant decline in net profit for the second quarter of this year. The company's revenue also experienced a dip, and it anticipates lower margins in the upcoming quarter.

In Q2, Randstad's net profit attributable to ordinary shareholders amounted to 135 million euros ($149.4 million), compared to the 194 million euros recorded during the same period last year.

Quarterly revenue fell to 6.465 billion euros, missing the FactSet consensus of 6.51 billion euros, which was based on forecasts from four analysts. In comparison, Randstad generated 6.89 billion euros in revenue during the previous year.

While the company witnessed revenue growth in Asia and Latin America, its performance in Europe was mixed, and there was a decline in revenue from North America.

The underlying earnings before interest, taxes, and amortization (EBITA) – a key performance metric that excludes exceptional and one-off items – dropped to 271 million euros from 308 million euros. Similarly, the underlying EBITA margin contracted from 4.5% to 4.2%.

For the third quarter, Randstad expects a slight sequential decrease in gross margin and operating expenses.