Revenue trend gradually turning; increased gross margin pressure largely offset by continued strong cost management
Key points third quarter 2009
- Revenue of € 3,178 million; organic growth1 per working day -28% (from -30% in July to -26% in September)
- Gross profit reached € 596 million (-35%) with the gross margin coming down from 20.6% to 18.8%
- Operating expenses reduced by 25% to € 503 million, backed by natural attrition, synergies and restructuring
- EBITA2 amounted to € 93 million (-61%), with the underlying EBITA margin reaching 2.9% (vs. 5.5% in Q3 2008)
- Net debt reduced by € 355 million to € 1.167 million; leverage ratio stable at 2.4
- Adjusted net income3 attributable to holders of ordinary shares € 72.5 million; diluted EPS4 € 0.42 (-54%)
"It is encouraging", says Ben Noteboom, CEO of Randstad, "that the revenue trend has become a little better through the quarter on average, a trend which has continued in October. The pattern is classic, with professionals businesses stabilizing, while staffing and inhouse services are gradually picking up in several geographies. Stringent cost control has paid off. We will certainly need to keep a close eye on costs the coming quarters, especially in view of increased pressure on gross margin. However, as our renewed marketing campaigns show, for instance in France, we are also carefully rebalancing our investments. We have welcomed many new clients this quarter. I want to give a special thanks to our people for their dedication and perseverance. We look forward to keep improving our business wherever we can."