Japanese staffing firm Pasona Group (2168: JP), reported revenue today for the nine months ended 28 February 2023 of JPY 277.28 billion (USD 2.09 billion), an increase of 2.4% compared with last year.

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 childcare; foreign language education abroad; public solutions, such as employment of persons with disabilities; and other social welfare businesses.

Pasona said demand for BPO services and outsourcing grew, and demand for human resources remained strong, with the Career Solutions placement and recruiting services outperforming the same period of the previous year. In overseas (Global Sourcing), demand for human resources also recovered, and even excluding the push-up effect of foreign exchange rate effects, profit expanded from the same period of the previous year.

Operating profit declined by 38.5%. The group added that SG&A expenses increased from the same period last year by 17.4%, but these were mainly due to outsourcing external growth costs and expenses related to large-scale promotions, as well as one-time expenses associated with the relocation of the Tokyo office in the first quarter.

Revenue in the HR Solutions segment grew by 1.4% over the year.

Looking ahead Pasona forecasted revenue of JPY 385.00 billion (USD 2.91 billion) for the year ended 31 May 2023.

In December 2022, Pasona Group announced that it has signed an agreement to acquire Kanden Joinus Co., Ltd, an HR services firm based in Japan that also provides temporary staffing services. The firm was listed on the First Section of the Tokyo Stock Exchange.

Earlier this year, it was reported that Pasona Group erroneously overcharged three cities in western Japan for Covid-19 vaccination call centre operations by a total of approximately JPY 1.08 billion (USD 8.0 million) after a company it subcontracted falsified staff numbers. Pasona issued an apology after complaints were received from residents of the cities, including that it was difficult to reach the call centres.

Pasona Group shares closed at JPY 1,817.00 (USD 13.72), up 1.85% on the day and 4.91% above its 52-week low of 1,732.00 (USD 13.08), set on 12 April 2023. The company has a market cap of JPY 74.38 billion (USD 561.50 million).