In This Article:
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Q4 Organic Revenue Decline: 5.5% decrease.
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Q4 Gross Margin: 18.8%.
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Q4 EBITDA: EUR 200 million.
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Q4 EBITDA Margin: 3.3%.
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Full Year 2024 Revenue: EUR 24.1 billion, 7% lower year over year.
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Full Year 2024 EBITDA: EUR 754 million.
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Full Year 2024 EBITDA Margin: 3.1%.
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Proposed Dividend: EUR 1.62 per share, totaling EUR 285 million.
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North America Revenue Decline: 7% sequentially.
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Northern Europe Revenue Decline: 7%.
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Southern Europe Revenue Growth: Spain grew 9%.
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Asia Pacific EBITDA Margin: 4.3%.
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Q4 Gross Margin Decline: 130 basis points year over year.
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Q4 Integration and One-off Expenses: EUR 79 million.
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Q4 Free Cash Flow: EUR 87 million.
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Full Year 2024 Leverage: 1.6 times.
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Effective Tax Rate: 35%, underlying rate 23.4%.
Release Date: February 12, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Randstad NV (RANJY) achieved a gross margin of 18.8% in Q4, driven by a strategic business and service mix.
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The company delivered an EBITDA of EUR 200 million for Q4, with a margin of 3.3%, showcasing effective cost management.
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Randstad NV (RANJY) proposed a dividend of EUR 1.62 per share, reflecting confidence in its business and capital allocation policy.
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The implementation of the specialization framework across all markets is a key milestone, enhancing client understanding and competitive dynamics.
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The launch of over 45 specialized talent and delivery centers in 10 key markets resulted in a 20% increase in fulfillment in 2024.
Negative Points
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Randstad NV (RANJY) experienced a 5.5% decline in organic revenue in Q4 due to labor market challenges.
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The company's full-year 2024 revenues were EUR 24.1 billion, 7% lower year over year.
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The automotive sector continues to be under pressure, impacting growth in key regions like Germany and France.
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The EBITDA margin in Northern Europe was affected by restructuring efforts and challenging macroeconomic conditions.
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Randstad NV (RANJY) incurred EUR 79 million in integration and one-off expenses in Q4, impacting financial performance.
Q & A Highlights
Q: Can you provide an update on the competitive environment and pricing, and how these factors are impacting the gross margin? A: Jorge Vazquez, CFO: The competitive environment remains rational, and pricing is not a significant factor in the gross margin development. The impact on gross margin is primarily due to mix changes and some incidentals. We expect some reversal of these impacts in Q1, leading to a slight improvement in gross margins sequentially.