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Randstad delivered an honourable set of figures for the Q3 23. Although organic revenue decreased (-7.3%) by more than our expectation, the underlying EBITA margin was better than forecast at 4.4% of revenue (-0.4pt). Randstad was impacted by tougher market conditions in North America and a deterioration in Germany. Except for North America, EBITA was resilient everywhere else. Based on the first two weeks in October 23, there has been some stabilization in the decreasing trend.
Companies: Randstad NV
AlphaValue
Randstad’s Q2 results were marginally below the consensus estimates on revenues and gross profit but above them on adjusted EBITA. Organic decline deteriorated yoy across the main geographies. Gross margins were impacted by an unfavourable mix but the group reduced its operating expenses to deliver better than expected EBITA. CFO and FCF grew due to better working capital development. For Q3, Randstad expects the gross margin and opex to be lower sequentially, with trends similar to that seen in
Randstad’s Q1 results were largely in line with consensus estimates on revenues and marginally above them on profitability. Revenues were impacted by lower demand in key geographies, whereas profitability was helped by better gross margins and control over opex spending. CFO and FCF grew due to decent working capital management. For Q2 23, the group expects the gross margin and opex to be broadly in line sequentially. The trends seen in early April were similar to those seen in the Q1.
Randstad’s Q3 results were above consensus estimates across the board, with a stronger beat on profitability compared to revenues. Organic revenue growth was decent and benefitted from growth across all categories. The gross margin improved yoy due to a favourable mix and price actions. This translated into higher EBITA and a superior EBITA margin. For Q4, the group expects the gross margin and operating expenses to be in-line sequentially. In our opinion, revenue growth could be slightly softer
Randstad’s Q2 results were slightly above consensus but improved decently yoy. Despite a sequential decline, organic revenue growth in the quarter was strong. The gross margin and operating expense margin slightly increased qoq. This also helped to improve EBITA and the EBITA margin. Revenue growth benefited from solid demand in Permanent Placement and RPO, whereas profitability was lifted by a favourable business mix and pricing initiatives. For Q3, the group sees similar trends in early July b
Randstad beat expectations in Q1 22 with strong organic revenue growth (+15.2%) and an underlying EBITA margin of 4.3% of revenue (+0.6pt). Randstad benefited from a positive pricing environment and a favorable mix of services. Organic growth was spread across all the geographic areas and categories of services. Volumes in early April 22 indicate the continuation of the positive trend. In Q2 22, the gross margin and operating expenses are expected in line sequentially.
In Q4 21, strong organic revenue growth (+16.3%) was attributable to North America (+14%), Europe (+15%) and the Rest of the world (+20%). The underlying EBITA margin improved by 0.4pt to 5% of revenue. In 2021, Randstad had a good set of figures (+20% organic growth, underlying EBITA margin of 4.4% of revenue, free cash flow of €590m). The proposed dividend is above expectation at €5.0/share (ordinary and special dividend). It is a high return to shareholders of €920m.
Organic growth complemented by bolt-on acquisitions, the EBITA margin improvement and an attractive return to the shareholders are still on the agenda. Randstad has been a well-managed company under the head of the CEO Jacques van den Broek who will retire in March 2022. He will be replaced by Sander van’t Noordended who has spent a large part of his career at Accenture. His experience is interesting with the aspect of digital.
Randstad beat the consensus in Q3 21. Organic revenue surged by +20.7% on the back of the favourable economic environment. Q3 21 organic revenue exceeded Q3 19 by 5%. The underlying EBITA margin improved to 4.7% of revenue (+0.8pt) thanks to a higher gross margin and good control of operating expenses. The momentum remains positive in early October 2021 vs the situation in September 2021 (6% above September 2019). Lastly, Randstad announced a change in the CEO for March 2022.
In Q2 21, organic revenue surged by 38% and was above the Q2 19 level by 3%. The resumption of the activities was attributable to all geographic areas: +23% in North America, +46% in Europe, +20% in the rest of world. The underlying EBITA margin reached 4.3% of revenue (+2.8pts) thanks to a higher gross margin and an increase in the operating expenses at a lesser pace than revenue growth. Volume in early July 2021 shows continued positive momentum.
In Q1 21, organic revenue growth was strong (+6.4%) and was up in all geographic areas (+5% in North America, +6% in Europe, +11% in the rest of world). Growth was driven by staffing and in-house services. The underlying EBITA margin improved by 0.7pt to 3.7% of revenue. The short-term outlook remains positive as volumes in April 2021 are approaching the 2019 levels.
Q4 20 was better than expected. Organic revenue decreased by 3.6% (of which +1% in North America, -5% in Europe, -1% in the Rest of World) and the underlying EBITA margin was 4.6% of revenue (-0.3pt). In 2020, the strong free cash flow (€1,132m) included positive effects from the CICE receivables in France sold to third-parties (€265m) and the COVID-19 governmental measures (€120m). The proposed dividend with respect to FY20 is above expectations. The recovery in activities continued in January
Randstad beat the consensus in Q3 20 with a decrease in organic revenue of 13% and an underlying EBITA margin of 3.9% of revenue (-1.1pt). Randstad performed well in North America, the Rest of world and Italy, all where the decrease in organic revenue was below the group average. Randstad had a strong free cash flow thanks to the positive impact of the CICE subsidy collection in France.
In Q2 20, organic revenue dropped by 25% (less than the consensus expected) and the EBITA margin before integration costs and one-offs (1.5% of revenue) beat the consensus. In addition, the group had strong free cash flow. The group benefited from cost management, low WCR and the governmental measures implemented in several countries. According to management, July indicates further positive momentum vs June 2020 (-21%) and the second half of March 2020 (-30%) and April 2020.
In Q1 20, organic revenue decreased by 7% (o/w -10% in Europe) reflecting -3% to -4% in January/mid-March 2020 then -30% since mid-March. It is an indicator for Q2 20 as North America and other countries in the ROW entered into the COVID-19 and lockdown cycle in April. The underlying EBITA margin was solid thanks to cost measures and the first governmental measures related to COVID-19. Free cash flow did not deteriorate and the net debt/EBITDA ratio was rather stable (1.1x).
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