Q1 2023: resilient performance, adapting to challenging conditions.

Below are the highlights from the Q1 2023 results press release:

• Q1 2023 organic growth -4.2%
• Q1 2023 underlying EBITA € 266m
• Q1 2023 EBITA margin 4.1%
• gross profit -2% YoY; perm -8% & RPO -2% YoY, combined c. 19% of gross profit
• strong gross margin of 21.0%, +50bp YoY, reflecting mix & pricing
• solid EBITA margin, focused cost management
• rev. growth continued in asia pacific and latam, mixed trends in europe, decline in north america
• sound balance sheet; DSO of 53.0; ROIC of 19.7%
• in early April, trends broadly in line with Q1 2023

Sander van ‘t Noordende, CEO of Randstad, commented: “I am pleased with the performance we delivered in the first quarter amid the continued challenging macroeconomic conditions across our markets. We have adapted well to this operating environment, and delivered growth in some markets. The improvement in our gross margin reflects a sustained focus on pricing and the mix of our different services, while our EBITA margin demonstrates strong cost management across our business.  

We continue to benefit from our strong market position. We have deep customer relationships and are committed to building the best talent delivery engine in the market, with an excellent team in place to deliver on this. Our strong balance sheet enables us to capture the growth opportunities available to us, while we remain disciplined and able to adapt our operations as needed.  

The trends we experienced in the first quarter have continued into early April and while we remain cautious, the prevailing trend of labor market scarcity remains across our markets. Our experienced teams, long track-record of delivery and execution in all environments, together with our strategy to be the partner of choice for talent and clients, gives us confidence as we look ahead.”