(Reuters) – The Randstad temporary and recruitment specialist reported a sharp drop in some of its main financial indicators on Wednesday, while its prospects for the current quarter we discreet analysts, highlighting the conditions difficult market for the sector.

The action fell 3.5% on the Amsterdam Stock Exchange at 9:15 a.m. GMT.

Financial and political turbulence in markets such as France, Germany and the United Kingdom have led employers to limit hiring and discourage employees to change jobs. Recruitment companies have published pessimistic forecasts and warnings on their profits in recent weeks.

If Randstad has published a quarterly profit above expectations, he recorded a net loss of 149 million euros for the period due to a depreciation of “goodwill” (acquisition gap) and announced other depreciations on Loans and financial commitments in the last three months of 2024.

Organic turnover per working day of the fourth quarter 2024 decreased by 5.5% over a year and the evolution of volumes in 2025 indicates additional degradation, with growth in organic turnover in January online with The trends for the last three months of 2024, the group said in a statement.

The gross margin of the first quarter of 2025 should be slightly higher in sequential and operating expenses slightly lower than those of the previous quarter, added Randstad.

Ing analysts qualify these “disappointing” prospects.

“Performance is of low quality because it seems mainly due to the exchange rate,” notes the broker.

Degroof Petercam has lowered the recommendation on the value of “keep” to “lighten”, citing the persistent weakness of sales dynamics, an available cash flow and limited visibility on profits.

Oddo BHF and JP Morgan both maintained their recommendations to “neutral”, stressing quarterly results in accordance with expectations but with important exceptional elements, depreciations and cautious perspectives for the first quarter of 2025.

The group has undergone a depreciation of Goodwill of 121 million euros linked to Sweden and UK SUMMAUM, while an adjustment of fair value and depreciations on loans and financial commitments cost the group 139 million euros Additional, he said.

The benefit before interest, taxes and depreciation (EBITA) before exceptional elements of Randstad amounted to 200 million euros in the fourth quarter of 2024, against a consensus provided by the group which was tabbed on 194 million.

Randstad proposed a dividend of 1.62 euros per share under 2024.

(Written by Michal Aleksandrowicz in Gdansk, with Johan Bodinier; Diana Mandiá, edited by Blandine Hénault)

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