Randstad Announces Q3 2024 Results, Reports €6.01 Billion in Revenue and Confirms Acquisition of Zorgwerk

Randstad, the world’s largest staffing firm, reported a 5.9% organic revenue decline in Q3 2024, amounting to €6.01 billion. Revenue dropped 3.9% year-on-year due to challenging economic conditions across regions, including North America, Northern Europe, and Asia Pacific. Randstad also announced the acquisition of Zorgwerk, a healthcare staffing platform in the Netherlands, to bolster its offerings in the healthcare sector. Despite tough market conditions, CEO Sander van ‘t Noordende emphasized Randstad’s commitment to operational discipline and growth in key sectors, particularly healthcare. The underlying EBITDA was down 28% year-on-year, but slightly above analyst expectations.

Amsterdam, Netherlands – October 22, 2024 – Randstad N.V. (RAND: NV), the world’s largest staffing firm, announced its financial results for the third quarter of 2024, reporting a revenue of €6.015 billion, reflecting a 5.9% organic decline year-on-year. The company also confirmed the acquisition of Zorgwerk, a leading healthcare staffing platform in the Netherlands, as part of its strategic focus on expanding its healthcare offerings.

Key Q3 2024 Financial Highlights:

• Revenue: €6.015 billion, a 4% decline from Q3 2023’s €6.260 billion.
• Organic revenue per working day: Down 5.9% year-on-year.
• Gross Profit: €1.172 billion, a 9% decrease compared to €1.293 billion in Q3 2023.
• Underlying EBITA: €196 million, down 28% from €273 million in Q3 2023, representing a 29% organic decline.
• Net Income: €106 million, a 38% decline year-on-year (Q3 2023: €170 million).

Sander van ‘t Noordende, CEO of Randstad, said, “Despite persistent macroeconomic challenges, we saw stabilization in several of our key markets. By maintaining our operational discipline and focusing on strategic investments, particularly in high-growth segments such as healthcare, we are confident in our ability to navigate these conditions and continue to deliver value to our clients and stakeholders.”

Regional Performance:

• North America: Organic revenue was down 9%, with US Professional talent solutions declining by 20% and US Operational talent solutions down 3%. Canada experienced a 10% revenue drop.
• Northern Europe: Revenue fell by 8%, with Germany down 11% and the Netherlands down 7%. However, the Professional talent solutions segment in the Netherlands grew by 1%.
• Southern Europe, UK & Latin America: Revenue dropped by 2%, with Italy growing by 3%, driven by a 10% rise in Professional talent solutions. The UK, however, faced an 11% decline.
• Asia Pacific: Organic revenue declined by 5%, though Japan remained a standout performer with a 4% revenue increase and strong profitability.

Acquisition of Zorgwerk:

Randstad also announced its agreement to acquire Zorgwerk, a leading healthcare staffing platform in the Netherlands. The acquisition strengthens Randstad’s position in the healthcare and care sectors, where talent scarcity is a critical challenge. Zorgwerk, founded 26 years ago, has built a strong presence across various healthcare segments, including elderly care, mental health, and hospitals. The acquisition aligns with Randstad’s strategy to expand its healthcare services and leverage digital marketplaces to enhance client and talent engagement.

Sander van ‘t Noordende commented, “The acquisition of Zorgwerk is a key strategic move to grow our healthcare segment and provide innovative, personalized staffing solutions in this critical industry. By combining Randstad’s expertise with Zorgwerk’s network and capabilities, we are well-positioned to meet the growing demands of healthcare clients and address the significant talent shortages in the sector.”

Daniëlle van der Burg, CEO of Zorgwerk, added, “Partnering with Randstad offers us a fantastic opportunity to accelerate our growth and innovation within the healthcare staffing industry. Together, we can build a stronger presence and better serve both talent and clients, helping to address the pressing needs in the healthcare market.”

Outlook:

Randstad expects volumes to stabilize in the upcoming quarter, benefiting from easier year-on-year comparisons and additional working days. The group also anticipates an improved underlying gross margin in Q4, following the sale of its Monster online recruitment platform. Randstad remains committed to leveraging its scale, operational capabilities, and strategic investments to drive long-term growth.

In reflecting on the company’s legacy, van ‘t Noordende concluded, “This is the first set of results since the passing of our founder, Frits Goldschmeding, an iconic leader who always put people first. We will continue to innovate and grow Randstad in line with his values—‘to know, to serve, to trust’—while maintaining our commitment to empowering people and organizations globally.”

Randstad’s shares (RAND: NV) closed at €44.09, marking a 2.18% increase for the day, with a market cap of €7.80 billion.

About Randstad:

Randstad is the world’s largest HR services provider, helping individuals and organizations achieve their full potential by connecting talent with opportunity. Operating in over 39 countries, Randstad supports businesses across a variety of industries with specialized staffing, workforce solutions, and HR technology.