Randstad announces Q3 growth & CEO to step down
- Revenue of &euro 4,363 million organic growth per working day -/-1.1% September 0.6%
- Strong cost control, focus shifts to conversion of gross profit growth EBITA margin up from 3.7% to 4.2%, highest profitability since 2008
- Significant cash flow generation, net debt to &euro 790 million and leverage ratio from 2.2 to 1.2
- Net income up 22% to &euro 84 million
- Diluted EPS of &euro 0.65 per ordinary share, up 5%
- Jacques van den Broek to succeed Ben Noteboom as CEO, Chris Heutink nominated as member of the Executive Board (separate press release)
Message from the CEO
"September saw a return to growth and we achieved the highest profitability since 2008" says Ben Noteboom, CEO of Randstad. "In Europe, an increasing number of countries now show growth. Iberia, the UK, Poland, Italy, Germany, Norway and Sweden are good examples. Elsewhere, Brazil continues to grow fast. The USG integration is on track, with Switzerland, Poland and Luxembourg completed, with a sucessful introduction of the Randstad brand in Austria. As announced before, during this quarter we launched new marketing campaigns in some of our larger markets. We face the future with confidence."
Randstad announces changes in leadership
Jacques van den Broek will succeed Ben Noteboom as CEO of the Supervisory Board of Randstad. It was announced today Noteboom will step down from the Executive Board on February 28, 2014. As from that date, Jacques van den Broek will succeed Ben Noteboom as CEO and Chairman of the Executive Board. Chris Heutink is nominated for appointment as member of the Executive Board.
Ben Noteboom (age 55) joined Randstad in 1993. He held a series of senior management positions with Randstad and he started Inhouse Services before he joined the Executive Board in 2001. Ben was appointed interim-CEO in September 2002, before he was appointed CEO and Chairman of the Executive Board in March 2003. During Ben's leadership revenue grew from &euro 5 billion to &euro 17 billion, while profitability rose from &euro 100 million to &euro 578 million. Randstad became the second-largest HR services provider globally. Ben successfully grew Randstad by focusing on its strategic building blocks. He led the expansion of Randstad in North America, France, Japan, emerging markets and Professionals by organic growth and a series of acquisitions, such as Vedior, SFN Group and FujiStaff, and he successfully managed Randstad through various economic cycles. Randstad is now entering a new phase of growth with a strong financial position, which offers a good opportunity to carefully manage the transition to a new CEO. Moreover, Jacques van den Broek has been a member of the Executive Board since 2004, and for these reasons Randstad envisages a smooth and orderly transition process as of January 1, 2014.
Fritz Fröhlich, chairman of the Supervisory Board: "Ben has an outstanding track record within Randstad and after 11 years as CEO we owe him thanks for his exemplary performance through some very challenging times. He leaves Randstad behind, which is in excellent shape both operationally and financially, and I want to thank Ben for his commitment and dedication to the company. I wish him all the best in his future endeavors."
Fröhlich continued: "Randstad favors long careers and has successfully managed to constantly develop and promote management from within. Recent appointments of Linda Galipeau and François Béharel are good examples of this philosophy. We are fortunate that we can appoint Jacques van den Broek as the new CEO and I am confident of a smooth and orderly transition."
Jacques van den Broek
Following graduation in law, Jacques van den Broek (age 53, Dutch) joined Randstad in 1988 as branch manager. Appointments followed as Regional Director in the Netherlands and, subsequently, Marketing Director Europe. In 2002, he moved to Capac Inhouse Services as Managing Director, also taking on responsibility for Randstad in Denmark and Switzerland. Jacques van den Broek joined the Executive Board in 2004, and is currently responsible for the UK & the Middle East, Belgium & Luxembourg, Germany, Italy, Switzerland, Yacht and Global Client Solutions. The appointment as CEO will be for an initial 4-year term.
Fritz Fröhlich: "Jacques' track record within Randstad and as member of the Executive Board has been impressive and he was instrumental to the improvement of Randstad's performance since 2004. He led the growth of our Global Client Solutions offering and managed various integrations, such as Vedior France. We wish Jacques all the best in preparing for his new position and look forward to building on the strong foundation."
The Supervisory Board also nominates Chris Heutink (age 51, Dutch) as member of the Executive Board for an initial 4-year term. The appointment is subject to the approval by shareholders at the upcoming Annual General Meeting of Shareholders on April 3, 2014. Chris Heutink joined Randstad as a consultant in The Netherlands in 1990, followed by various management positions until 2004. He subsequently moved to Warsaw, where he held the position of Managing Director Randstad Poland. Chris led the integration of Jobnet and Intersource / Tempservice into Randstad Poland as largest HR services company in Poland. After moving back to The Netherlands in 2007, he became Director Operations and was appointed General Manager of Randstad The Netherlands in 2009. Since 2012, Chris has been a member of the Advisory Board.
Ben Noteboom: "It is an honor to lead a company with such strong core values, with such great and dedicated people with whom we have created a world leader in our field. I take pride in saying that we are now in excellent shape to hand over the leadership to Jacques, in whom I have the fullest confidence. I also want to congratulate Chris on his nomination as member of our Executive Board. There is a strong team in place and all the ingredients are there to build an even stronger Randstad in the future".