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Recruit sees moderate expansion trend in North America, Europe staffing operations

May 14, 2015

Recruit Holdings Co., the world’s fifth-largest staffing firm, reported staffing operations in North America and Europe are enjoying a moderate expansion trend. North America staffing net sales rose 14.2% to ¥264.76 billion (US$2.21 billion) in its fiscal year ended March 31.

(¥millions) FY 2015 FY 2014 % growth FY 2015 (USD$millions)
Net sales ¥1,299,930 ¥1,191,567 9.1% $10,867
Gross profit ¥655,192 ¥602,315 8.8% $5,477
Net income ¥69,702 ¥65,421 6.5% $583

The company has made several acquisitions, most recently of US-based staffing provider Atterro. Its other North America staffing operations include Staffmark Holdings Inc. and Advantage Resourcing

Recruit’s net sales for its staffing business in Japan rose 6.2% to ¥965.35 million (US$8.07 billion).

Tokyo-based Recruit also has significant nonstaffing business operations in publishing and it owns job board indeed. The company reported total net sales rose 9.1% to ¥1.30 trillion (US$10.87 billion) for its fiscal year. The company’s stated aim is to become the world’s top provider of HR media operations and staffing operations by 2020.

Recruit’s HR Technology Fund, which launched in January, in March invested in All4Staff Inc., a technology company with an automated onboarding solution for the human resources industry. And in April, Recruit invested in San Francisco-based 99designs Inc., a crowdsourcing marketplace provider for designers, and Tokyo-based Gengo Inc., a crowdsourcing translation service provider that plans to use the funds raised to develop new products and expand its customer base in the US.

Net sales by segment

(¥millions) FY 2015 FY 2014 % growth FY 2015 (USD$millions)
Marketing media ¥333,411 ¥322,315 3.4% $2,787
HR Media (includes Indeed) ¥302,734 ¥266,916 13.4% $2,531
Staffing ¥675,204 ¥612,478 10.2% $5,645
Other ¥2,005 ¥2,861 -29.9% $17

Net sales by geography

  FY 2015 FY 2014 % growth FY 2015 (USD$millions)
Japan ¥965,351 ¥908,885 6.2% $8,070
North America ¥264,764 ¥231,913 14.2% $2,213
Other ¥69,814 ¥50,767 37.5% $584

Guidance

Recruit expects net sales to rise 19.2% in FY 2016 through growth and acquisitions.

Sales price and market cap

Shares in Recruit closed down 2.9% on May 14 to ¥3,875; it had a market cap of ¥2.15 trillion, according to Google.