Release Date: April 23, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Randstad NV (RANJF, Financial) reported an EBITA of EUR167 million with an EBITA margin of 3% for Q1 2025, showcasing strong profitability despite revenue declines.
- The company saw continued growth in key markets such as Spain, Italy, and Japan, driven by investments in digital and skill trade segments.
- North America showed signs of stabilization with sequential improvement, particularly in the US, where operational business returned to growth in March.
- Randstad NV (RANJF) is focusing on growth segments like logistics, skilled trade, healthcare, finance, and engineering, which are showing promising results.
- The Asia Pacific region, especially Japan, demonstrated solid growth and strong profitability, benefiting from specialization and digital investments.
Negative Points
- Overall, Randstad NV (RANJF) experienced a 4.2% decline in organic revenue year-over-year, reflecting challenging trading conditions in many markets.
- The automotive sector remains a significant challenge, particularly in Northern Europe and France, impacting overall business performance.
- Macroeconomic uncertainty and geopolitical factors, including international tariffs, are contributing to limited visibility and cautious client behavior.
- Permanent hiring and professional solutions remain subdued, with declines of 19% and 15% respectively, indicating a cautious approach by businesses.
- The UK market continued to soften, with a notable 40% decline, highlighting regional challenges within the company's portfolio.
Q & A Highlights
Q: Can you discuss the impact of tariffs on your business and how it compares to the 2018 tariff situation?
A: Sander Van 't Noordende, CEO, explained that the current environment is more dynamic and uncertain due to broader economic and geopolitical factors, not just tariffs. The automotive sector has seen some impact, but it's too early to determine the full effect. Unlike 2018, current hiring levels are already low, and the penetration rate is lower. The company focuses on growth areas like logistics and healthcare to mitigate risks.
Q: How did the growth trends evolve throughout Q1, and what regions showed improvement?
A: Jorge Vazquez, CFO, noted that the U.S. showed significant improvement, with operational business returning to growth in March. Digital specialization also grew. The company entered April with a better rate than the Q1 average, indicating progress in key markets.
Q: What drove the decline in depreciation, and what are the expectations for the full year?
A: Jorge Vazquez, CFO, attributed the decline to the divestment of Monster, stating that depreciation will remain stable throughout the year.
Q: Can you elaborate on the strong performance of RPO and its geographic success?
A: Sander Van 't Noordende, CEO, highlighted that the enterprise team has been successful in winning new clients, particularly in life sciences and with companies like Microsoft. The company is also improving productivity and fulfillment through its enterprise operating system and expanding delivery in India.
Q: How do you plan to manage costs and protect margins amid potential economic downturns?
A: Jorge Vazquez, CFO, emphasized the company's focus on aligning costs with gross profit and maintaining flexibility in its cost base. The company has achieved significant savings and is prepared to adjust its cost structure if necessary to protect profitability.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
