Randstad Announces Capital Return and Net Profit Decline

Randstad, the Dutch staffing company, has revealed its plans to return 632 million euros ($680.8 million) to shareholders as part of its capital allocation policy. Alongside this announcement, the company reported a decrease in net profit for the fourth quarter of last year.

Cash Dividends and Strong Balance Sheet

As part of the capital allocation strategy, Randstad will offer an ordinary cash dividend of EUR2.28 per share, as well as a special dividend of EUR1.27. This decision reflects the company's robust balance sheet and its commitment to providing value to its shareholders.

Decline in Net Profit and Earnings

For the quarter ending December 31, the net profit stood at EUR161 million, compared to EUR292 million in the same period the previous year. The underlying earnings before interest, taxes, and amortization also saw a decline from EUR364 million to EUR265 million, aligning with the consensus derived from the company's website.

Revenue and Organic Growth

Randstand witnessed a decrease in revenue, with figures dropping from EUR7.01 billion to EUR6.18 billion. Furthermore, organic revenue per working day experienced an 8.6% decline year-on-year. The Ebitda margin decreased from 5.2% to 4.3%.

Outlook and Market Conditions

Despite the challenges posed by the uncertain global macroeconomic environment, Chief Executive Sander van't Noordende highlighted the company's ability to adapt and excel in changing market conditions. While labor markets remain tight, the decision-making of clients and talent continues to be influenced by this unpredictable landscape.

The company anticipates a modest sequential decrease in first-quarter gross margin due to seasonality.