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View All NewsJapan – Pasona Group H1 revenue up 0.8%, but HR Solutions reports slight decline and profits take a dive
Japanese staffing firm Pasona Group (2168: JP), reported revenue for the six months ended 30 November 2022 of JPY 183.97 billion (USD 1.43 billion), up 0.8% compared with last year.
The group said demand for BPO services and outsourcing ‘remained strong’ in the company. In addition, the regional development business expanded from the previous year as tourists began to return due to the easing of restrictions on activities.
Pasona Group’s Outsourcing services and Regional Revitalisation Solutions business also grew, despite the absence of the large spot orders for temporary staffing and BPO services that had accumulated significantly in the same period of the previous year.
| (JPY millions) | H1 2022 | H1 2021 | Change | H1 2022 (USD millions) |
| Revenue | 183,973 | 182,486 | 0.8% | 1,432.3 |
| Gross Profit | 44,856 | 44,512 | 0.7% | 349.1 |
| Gross Margin | 24.4% | 24.4% | - | - |
| Operating Profit | 6,733 | 11,996 | -43.9% | 52.4 |
| Net Income | 2,734 | 4,800 | -43.0% | 21.2 |
Due to a change in segment composition, the gross profit margin for the entire consolidated group was 24.4%, the same as the same period last year.
As SG&A expenses increased due to expenses related to business expansion and large-scale promotions in the outsourcing business, as well as double rent associated with the relocation of the Tokyo office in the first quarter of the fiscal year, operating income reported a decline. Net income also fell.
Revenue in HR Solutions fell slightly by 0.3%.
| (JPY millions) | H1 2022 | H1 2021 | Change | H1 2022 (USD millions) |
| Expert Services (Temporary staffing), BPO Services (Contracting), Others | 152,717 | 154,183 | -1.0% | 1,188.7 |
| Career Solutions (Placement/Recruiting, Outplacement) | 6,909 | 7,492 | -7.8% | 53.8 |
| Outsourcing | 20,234 | 18,745 | 7.9% | 157.5 |
| HR Solutions Total | 179,861 | 180,421 | -0.3% | 1,400.1 |
The Life Solutions segment reported net sales amounting to JPY 3.99 billion, up 15.0% year-on-year. Net sales in the Region Revitalisation Solutions segment amounted to JPY 3.42 billion (USD 26.62 million), up 67.0% year-on-year.
Pasona Group recently announced that it had signed an agreement to acquire Kanden Joinus Co., Ltd, an HR services firm based in Japan that also provides temporary staffing services.
Through its subsidiaries, Pasona provides human resource solutions in Japan and internationally. It offers temporary staffing/contracting, outsourcing, and outplacement services. It also offers additional services, such as a childcare; foreign language education abroad; public solutions, such as employment of persons with disabilities; and other social welfare businesses.
Looking ahead the company forecasted revenue for the year ended 31 May 2023 of JPY 385.00 billion (USD 2.99 billion).
Pasona Group shares closed at JPY 1,904.00 (USD 14.82), down 0.78% on the day and 8.49% above its 52-week low of JPY 1,755.00 (USD 13.66), set on 20 June 2022. The company has a market cap of JPY 80.00 billion (USD 622.84 million).