Release Date: October 22, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you explain the substantial decrease in SG&A despite stable FTE numbers excluding Monster? Should we expect a similar reduction in SG&A in the first half of 2025? A: Jorge Vazquez, CFO: The decrease in SG&A is partly due to seasonal impacts in Q3. We continue to benefit from our focus on indirect costs, which should remain stable into Q4. It's too early to predict for Q1 2025, but we will manage our actuals responsibly to prepare for 2025.
Q: Your guidance seems more optimistic than some peers who expect sequential deterioration in Q4. Can you elaborate on your confidence in Q4 activity? A: Jorge Vazquez, CFO: We base our outlook on trends observed in early October. While some countries may experience less seasonal activity, others ramp up towards the end of the year, balancing out the effects. We expect higher profitability in Q4 with stable trends from Q3.
Q: How much of Randstad's business is exposed to the automotive sector, and how did it impact Q3? A: Jorge Vazquez, CFO: The automotive sector accounts for about 6-7% of our business and saw an 8% decline from Q2 to Q3, primarily impacting Europe. However, other sectors are showing stability or improvement.
Q: Can you explain the rationale behind the Monster disposal and the creation of a joint venture? A: Sander van't Noordende, CEO: Strategically, Monster as a job board no longer fits our focus on being a specialized talent company under the Randstad brand. The joint venture with CareerBuilder positions Monster for success as an independent entity.
Q: Regarding the acquisition of Zorgwerk, when do you expect it to be completed, and what is its margin profile? A: Jorge Vazquez, CFO: We expect the acquisition to close within 4 to 12 weeks, likely having no impact in Q4. Zorgwerk has a low double-digit profit margin, which is accretive to Randstad's earnings.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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