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View All NewsJapan – Outsourcing Q1 revenue and profits surge
Japanese staffing firm Outsourcing Inc. (2427:JP) reported revenue rose by 38.4% for the first quarter ended 31 March 2021 to JPY 123.89 billion (1.13 billion).
| (JPY millions) | Q1 2021 | Q1 2020 | % change | Q1 2021 (USD millions) |
| Revenue | 123,896 | 89,542 | 38.4% | 1,133.4 |
| Gross Profit | 23,483 | 17,104 | 37.3% | 214.8 |
| Gross Margin | 18.9% | 19.1% | - | - |
| Operating Income | 5,206 | 2,467 | 111.0% | 47.6 |
| Profit Before Tax | 5,464 | 1,448 | 277.3% | 49.9 |
| Profit for the Period | 3,123 | 986 | 216.5% | 28.5 |
Outsourcing Inc. provides outsourcing services in electronics, cars and other areas. It also provides temporary staffing services, known in Japan as worker dispatch.
The company has made a raft of acquisitions over the past 12 months both inside and outside of Japan which will have boosted the first quarter results including Career Group, S.S Sanyo, CPL Resources (the largest staffing firm in Ireland), Marks Co, Itec Co, Select Staff and HorizonOne. The intensive acquisition programme has continued into the second quarter of 2021 with the acquisition of Guam-based California Pacific Technical Services.
Revenue by segment
| (JPY millions) | Q1 2021 | Q1 2020 | % change | Q1 2021 (USD millions) |
| Domestic Engineering Outsourcing Business | 28,278 | 25,720 | 9.9% | 258.7 |
| Domestic Manufacturing Outsourcing Business | 23,732 | 16,517 | 43.6% | 217.1 |
| Domestic Service Operations Outsourcing Business | 7,011 | 5,984 | 17.1% | 64.1 |
| Overseas Engineering Outsourcing Business | 26,613 | 9,582 | 177.7% | 243.4 |
| Overseas Manufacturing and Service Operations Outsourcing Business | 40,304 | 33,020 | 22.0% | 368.7 |
| Other Business | 385 | 369 | 4.3% | 3.5 |
According to SIA’s Largest Staffing Firms in Japan and Market Overview report, Outsourcing is now the 3rd largest staffing firm in Japan based on 2019 revenue having overtaken Pasona.
Shares in Outsourcing closed at JPY 1,707.00 (USD 15.62), up 1.55% on the day and 9.20% below its 52-week high of JPY 1,880.00 (USD 17.20), set on 18 March 2021. The company has a market cap of JPY 212.47 billion (USD 1.94 billion).