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View All NewsJapan – Outsourcing full year revenue rises 1.5%, but profits tumble
Japan-based staffing firm Outsourcing Inc. (2427: JP) reported revenue today for the full year ending 31 December 2020 of JPY 366.7 billion (USD 3.47 billion), an increase of 1.5% when compared to the previous year.
| (JPY millions) | FY 2020 | FY 2019 | Change | FY 2020 (USD millions) |
| Revenue | 366,711 | 361,249 | 1.5% | 3,479.8 |
| Gross Profit | 71,129 | 70,784 | 0.5% | 674.9 |
| Gross Margin | 19.4% | 19.5% | - | - |
| Operating Income | 14,337 | 15,342 | -6.5% | 136.0 |
| Profit Before Tax | 9,143 | 13,319 | -31.4% | 86.7 |
Outsourcing Inc. provides outsourcing services in electronics, cars and other areas. It also provides temporary staffing services, known in Japan as worker dispatch.
Revenue by segment
| (JPY millions) | FY 2020 | FY 2019 | % change | FY 2020 (USD millions) |
| Domestic Engineering Outsourcing Business | 103,840 | 91,367 | 13.6% | 985.4 |
| Domestic Manufacturing Outsourcing Business | 64,711 | 70,530 | -8.2% | 614.1 |
| Domestic Service Operations Outsourcing Business | 24,795 | 20,569 | 20.5% | 235.3 |
| Overseas Engineering Outsourcing Business | 39,460 | 43,866 | -10.0% | 374.4 |
| Overseas Manufacturing and Service Operations Outsourcing Business | 133,818 | 134,208 | -0.3% | 1,269.9 |
| Other Business | 87 | 709 | -87.7% | 0.8 |
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.
The group has recently been on an acquisition spree. In November, Outsourcing acquired Irish recruitment firm Cpl Resources for approximately €318 million. On 19 January it was reported that Outsourcing acquired S.S. Sangyo Co. Ltd, a Japanese firm involved in the worker dispatch business, outsourced contracting business and paid job placements. Furthermore, on 28 January, the group announced that it will acquire Select Staff Group and HorizonOne Recruitment.
Looking ahead, the group forecasted revenue of JPY 528 billion (USD 5.01 billion) for the year ended 31 December 2021.
Outsourcing set a new 52-week high during today's trading session when it reached JPY 1,634.00 (USD 15.50), up 2.88% on the day. Over this period, the share price is up 53.47%. The company has a market cap of JPY 192.14 billion (USD 1.82 billion).