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View All NewsJapan – Pasona Group first-quarter revenue rises 7.7% as profits show growth
Japanese staffing giant Pasona Group (2168: JP), reported revenue for the first quarter ended 31 August 2020 of JPY 85.75 billion (USD 814.3 million), an increase of 7.7% compared with last year.
| (JPY millions) | Q1 2020 | Q1 2019 | Change | Q1 2020 (USD millions) |
| Revenue | 85,751 | 79,626 | 7.7% | 814.3 |
| Gross Profit | 22,332 | 18,270 | 22.2% | 212.0 |
| Operating Profit | 7,287 | 1,243 | 486.1% | 69.2 |
Gross profit increased due to improved profitability of BPO (business process outsourcing) services through efficient management. SG&A expenses decreased due to the reassignment of employees and reduction of sales-related expenses such as advertising and travel expenses.
Through its subsidiaries, Pasona provides human resource solutions in Japan and internationally. It offers temporary staffing/contracting, outsourcing, and outplacement services. The company also offers additional services, such as childcare; foreign language education abroad; public solutions, such as employment of persons with disabilities; and other social welfare businesses.
The group said its HR Solutions and Life Solutions reported growth in the first quarter. Its Regional Revitalisation Solutions segment reported a decline in revenue.
The HR Solutions segment is broken down as follows:
| (JPY millions) | Q1 2020 | Q1 2020 | Change | Q1 2020 (USD millions) |
| Expert Services (Temporary staffing), Insourcing (Contracting), Others | 73,312 | 66,177 | 10.8% | 696.2 |
| Career Solutions (Placement/Recruiting, Outplacement) | 3,061 | 3,309 | -7.5% | 29.0 |
| Outsourcing | 8,248 | 8,679 | -5.0% | 78.3 |
| HR Solutions Total | 84,622 | 78,166 | 8.3% | 803.6 |
Looking ahead, the company forecasted revenue of JPY 310 billion (USD 2.94 billion).
Shares in Pasona Group closed at JPY 1,594.00 (USD 15.14), down 3.63% on the day and 8.86% below its 52-week high of JPY 1,749.00 (USD 16.61), set on 4 December 2019. The company has a market cap of JPY 68.96 billion (USD 654.8 million).