Recruiter Randstad misses profit forecast in tough market conditions (updated)

Randstad NV

23/04/2024 06:33

(Updates with details from the statement, background)
       April 23 (Reuters) - Randstad  RAND.AS , the world's
biggest employment agency, reported first-quarter core earnings
below expectations on Tuesday, hurt by challenging market
conditions.
    Recruiters have been flagging tough market conditions in
recent quarters, as workers prefer to avoid the risk of
switching jobs and employers offer smaller salary hikes amid
broader economic uncertainties.
    The Dutch group's quarterly underlying earnings before
interest, tax and amortisation (EBITA) fell 33% organically from
a year earlier to 177 million euros ($188.5 million), below the
181 million euros expected by analysts on average in a
company-provided poll.
    "While we performed well in Southern Europe, LatAm and Asia
Pacific, we encountered softer conditions than expected in North
America and Northern Europe," Randstad CEO Sander van't
Noordende said in statement.
    The highest inflation for decades and the impact of the war
in Ukraine have forced companies across Europe into layoffs or
hiring freezes.
    Randstad's revenue fell 8% organically to 5.94 billion euros
in the first three months of the year.
($1 = 0.9388 euros)

 (Reporting by Shivani Tanna in Bengaluru; Editing by Milla
Nissi)
 ((ShivaniJayesh.Tanna@thomsonreuters.com;))