Randstad Tops Revenue Expectations as Key Labour Markets Improve

Oct 21 (Reuters) - Randstad (RAND.AS) reported organic revenue growth of 3.9% for the third quarter ‌on Wednesday, beating analysts' average forecast of 2.9%, as its Dutch home market returned to growth and North America and Germany continued to show signs of recovery.

Recruitment firms such as ⁠Randstad or Adecco (ADEN.S) are seen as a gauge of labour-market health and economic momentum because employers adjust hiring plans as the broader economy ebbs and flows.

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Revenue in Germany grew by 5%, continuing the recovery seen in the second quarter when sales in Europe's biggest economy returned to growth ‌for ⁠the first time since early 2023
Revenue in North America rose 9%, with US operational staffing, which broadly covers blue-collar roles, growing 19% year-on-year
Revenue in the Netherlands ⁠grew 3%, an improvement from a 1% contraction a year ago, while France remained weak with revenue falling ⁠3%
Gross margin, a key profitability measure, was 17.8%, versus a company-compiled consensus of 17.9%
Randstad said it ⁠expected fourth-quarter gross margin to be broadly stable compared with the third quarter

Reporting by Jakob Van Calster in Gdansk, editing by Milla Nissi-Prussak

Source: Reuters