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View All NewsJapan – Outsourcing revenue jumps 21.9% with lift from all segments
Outsourcing Inc. (2427:TYO), a Tokyo-based global provider of staffing and outsourcing services, reported revenue today increased by 21.9% in the first nine months of its fiscal year to 30 September 2022.
While revenue was strong, operating profit declined by 1.5%.
| (JPY millions) | 9 months 2022 | 9 months 2021 | % change | 9 months 2022 (USD millions) |
| Revenue | 502,309 | 412,068 | 21.9% | 3,567.9 |
| Gross profit | 91,239 | 76,678 | 18.9% | 648.1 |
| Gross margin | 18.2% | 18.6% | - | - |
| Operating profit | 16,312 | 16,566 | -1.5% | 115.8 |
| Profit attributable to owners of the company | 6,254 | 3,513 | 78.0% | 44.4 |
On 5 April 2022, it was reported that Outsourcing acquired Sankyo Logi Associate Co. Ltd., a provider of warehouse worker staffing in the Kanto, Tohoku, Kansai and Chugoku areas of Japan. Net sales at Sankyo Logi totalled JPY 10.48 billion (USD 85.5 million) in its 2021 fiscal year. Outsourcing did not provide an organic growth number for its nine month revenue growth.
Revenue by segment
| (JPY millions) | 9 months 2022 | 9 months 2021 | % change | H1 2022 (USD millions) |
| Domestic Engineering Outsourcing Business | 108,455 | 89,413 | 21.2% | 770.3 |
| Domestic Manufacturing Outsourcing Business | 89,321 | 72,579 | 23.1% | 634.4 |
| Domestic Service Operations Outsourcing Business | 22,872 | 21,466 | 6.5% | 162.4 |
| Overseas Engineering Outsourcing Business | 120,554 | 100,510 | 19.9% | 856.6 |
| Overseas Manufacturing and Service and Operations Outsourcing Business | 161,060 | 128,059 | 25.7% | 1,144.4 |
| Other | 47 | 42 | 11.9% | 0.3 |
Looking ahead the company forecasted revenue of JPY 686.00 billion (USD 4.87 billion) for the full year ended 31 December 2022.
Outsourcing shares closed at JPY 1,274.00 (USD 9.05), down 0.62% on the day and 30.94% above the 52 week low of JPY 973.00 (USD 6.91) set on 17 June 2022. The company has a market cap of JPY 161.47 billion (USD 1.14 billion).