Randstad beats Q3 estimates, reports slight increase in core profit

Dutch staffing firm exceeds expectations, benefits from strong job market

Key highlights:

Randstad, a leading global staffing and HR services provider, reported its financial results for the third quarter (Q3) of 2023 on Wednesday. The company's core profit, which excludes certain items, came in at €261 million, slightly exceeding analyst expectations of €258 million. This represents a 4.1% increase compared to the same period last year.

Randstad's revenue for the quarter grew by 11% year-over-year to €6.5 billion. This growth was primarily driven by strong demand for temporary and permanent staffing services across all major markets, particularly in the technology, healthcare, and industrial sectors. The company's gross profit margin expanded by 1.2 percentage points to 16.7%, reflecting Randstad's focus on higher-margin businesses and its effective cost management initiatives.

In terms of regional performance, Randstad's strongest growth was seen in the Asia-Pacific region, where revenue increased by 15.4% year-over-year. The company also reported solid growth in North America and Europe, with revenue increasing by 10.1% and 7.9%, respectively. Randstad CEO Sander van 't Noordende commented on the company's performance, saying, "We are pleased to report another quarter of strong financial results, with core profit slightly above expectations. Our growth was broad-based across all regions and businesses, reflecting the continued strength of the labor market and our ability to meet the evolving needs of our clients."

He added, "Looking ahead, we remain cautiously optimistic about the global economic outlook. While we expect some moderation in growth, we believe that the underlying demand for staffing services will remain robust. We are well-positioned to continue to execute on our strategy and deliver sustainable growth and value for our stakeholders."