q1 2020: resiliency amidst covid-19; more challenging q2 ahead.

highlights

• Q1 2020 organic growth -7.4%
• Q1 2020 underlying EBITA € 162m
• Q1 2020 EBITA margin 3.0%
• first priority is the health and safety of our employees, candidates, and clients; seamless transition to work from home.
• revenue down 3%-4%, until mid-March; second half March down c.30% due to escalating Covid-19 impact.
• gross margin 19.4%, down 30bp YoY impacted by significant Covid-19 effects and slowing perm; EBITA margin down 100bp YoY to 3.0%.
• strong liquidity and solvency position; 2019 dividend proposal withdrawn due to focus on capital preservation. 
• well positioned to further strengthen global market leadership; part of 'safely back to work alliance'.
• intensified country lockdown in April; aiming for a recovery ratio of 50% over time supported by cost measures and governmental schemes

"Given the unprecedented Covid-19 situation, Randstad's first priority is the health and safety of our employees, candidates, clients and other stakeholders," says CEO Jacques van den Broek. "I would also like to take this opportunity to thank my Randstad colleagues for their incredible commitment and dedication with which they are responding to these difficult times. Today, all our colleagues around the world are in remote daily contact with their clients and candidates, underpinning our state-of-the-art digital infrastructure."

"Trading conditions in the first quarter were initially in line with our expectations, with organic revenues per working day down by 3%-4% until the first half of March. Since then, the rapidly escalating impact of Covid-19 has driven an unprecedented deceleration in business activity. With Europe and the Americas recently following much of the Asia Pacific region into various stages of lockdown, we expect Q2 2020 to be more challenging with very limited visibility. We have instantly halted all non-essential spending, withdrawn or adjusted cash bonus schemes of senior management for 2020 in a large number of countries. Together with widespread governmental schemes, for which we are very grateful, this should drive our recovery ratio towards 50% going forward. The Executive Board will also not receive a cash bonus for 2020. Randstad has a strong liquidity and solvency position, and an experienced management team who have navigated the business through various international crises before. Randstad can rely on its 60-year track record as a company with high operational flexibility. On April 16, we launched the 'safely back to work alliance' initiated with Adecco and Manpower. We are convinced that, as an industry, we can contribute together with governments, employers, and trade unions to the safe and healthy return of people to the workplace.”

video

watch our CEO’s video on this quarter’s news

Attachments

Randstad-Q1-2020-results-press-release.pdf

for more information

David Tailleur - Director Investor Relations

david.tailleur@randstad.com or +31 6 1246 2133

Steven Vriesendorp - Investor Relations Officer

steven.vriesendorp@randstad.com or +31 6 2692 8529