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View All NewsJapan – Pasona Group first quarter revenue ticks up 0.2%, growth in outsourcing offsets decline in temp staffing
Pasona Group Inc. (2168:TYO), a Tokyo-based staffing firm, reported revenue rose slightly by 0.2% year over year in its fiscal first quarter ended 31 August.
Gross profit increased due to sales growth in the outsourcing business, which has a high gross profit margin.
| (JPY millions) | Q1 2022 | Q1 2021 | % change | Q1 2022 (USD millions) |
| Net sales | 92,066 | 91,927 | 0.2% | 623.4 |
| Gross profit | 22,273 | 21,720 | 2.5% | 150.8 |
| Gross margin | 24.2% | 23.6% | - | |
| Operating Income | 3,330 | 5,700 | -41.6% | 22.5 |
| Net Profit | 1,293 | 2,481 | -47.9% | 8.7 |
Demand for human resources remained strong in the group as business activities recovered. In addition, business expanded as the number of tourists increased due to the easing of restrictions on activities by the Covid-19 infection. As a result, revenue rose 0.2%. The group reported growth in Outsourcing segment and Regional Revitalization Solutions segment, despite the absence of temporary projects that had accumulated significantly in the same period of the previous year.
Revenue by segment
| (JPY millions) | Q1 2022 | Q1 2021 | % change | Q1 2022 (USD millions) |
| Expert services (temp staffing) | 37,837 | 40,650 | -6.9% | 256.2 |
| Business process outsourcing services | 33,817 | 34,202 | -1.1% | 228.9 |
| HR consulting, education and training | 2,021 | 1,926 | 4.9% | 13.7 |
| Global sourcing (overseas) | 2,395 | 2,056 | 16.5% | 16.2 |
| Career solutions (placement/recruiting, outplacement) | 3,434 | 3,610 | -4.9% | 23.2 |
| Outsourcing | 10,583 | 8,513 | 24.3% | 71.6 |
| Life solutions | 1,963 | 1,708 | 14.9% | 13.3 |
| Regional revitalization solutions | 1,529 | 763 | 100.2% | 10.3 |
| Eliminations and corporate | (1,515) | (1,504) | - | 10.2 |
Looking ahead the company forecasted revenue of JPY 385.00 billion (USD 2.60 billion) for the year ending 31 May 2023.
Shares in Pasona Group closed at JPY 2,150.00 (USD 14.56), up 1.61% on the day and 22.51% above the 52 week low of JPY 1,755.00 (USD 11.88) set on 20 June 2022. The company has a market cap of JPY 88.51 billion (USD 599.2 million).