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View All NewsRecruit Holdings reports net sales up 16% FY 2016
Recruit Holdings Co. Ltd., the world’s fifth-largest staffing provider, reported net sales rose 15.8% in its fiscal year ended March 31; the increase was 20.5% excluding the impact of currencies. Revenue for fiscal year 2016 was ¥1.94 trillion (US$17.45 billion).
| (¥millions) | FY 2016 | FY 2015 | % change | % change constant currency | FY 2016 (US$millions) |
| Net sales | ¥1,839,987 | ¥1,588,623 | 15.8% | 20.5% | $16,535 |
| Gross profit | ¥860,876 | ¥756,293 | 13.8% | $7,736 | |
| Net income | ¥86,063 | ¥65,057 | 32.3% | $773 |
Recruit’s operations include staffing and publishing in Japan. In North America, its operations include Staffmark and Atterro. European operations include USG People and Australian operations include Chandler Macleod.
The company also owns job board Indeed, which posted revenue of $1.11 billion in 2016 (based on the year ending Dec. 31). The company estimates Indeed revenue will rise to $2.00 billion in 2018.
Net sales by segment
| (¥billions) | FY 2016 | FY 2015 | % change | FY 2016 (US$billions) |
| Marketing media | ¥376.3 | ¥349.3 | 7.7% | $3.4 |
| HR Media (includes Indeed) | ¥405.3 | ¥359.2 | 12.8% | $3.6 |
| Staffing | ¥1,068.7 | ¥890.0 | 20.1% | $9.6 |
| Other, reconciliation | -¥10.4 | -¥10.1 |
Net sales by geography
| (¥millions) | FY 2016 | FY 2015 | % change | Q1 2016 (USD$millions) |
| Japan | ¥1,111,082 | ¥1,022,906 | 8.6% | $9,984.7 |
| North America | ¥332,950 | ¥336,027 | -0.9% | $2,992.1 |
| Europe | ¥226,960 | ¥71,777 | nm | $2,039.6 |
| Other | ¥168,993 | ¥157,911 | 7.0% | $1,518.7 |
Quote
“During the year ended March 31, 2017, the Japanese economy was on a moderate recovery track, with the employment situation being stabilized at a high level,” according to the company’s report. “The economies in Europe and the United States continued to grow moderately centered on personal consumption, despite the prevailing uncertainty over the economic outlook due to Brexit and the new administration of the United States. The Australian economy also remained solid, supported by growth in personal consumption.”
Guidance
Looking forward, the company forecast revenue to rise 7.3% year over year to ¥2.08 trillion (USD$18.3 billion) for the financial year ending March 31, 2018.