Persol (2181:JP), the Japanese staffing giant, reported revenue today for the full year ended 31 March 2023 of JPY 1.22 trillion (USD 8.98 billion), an increase of 15.4% when compared to the previous year.

The group said sales increased in all Strategic Business Units (SBUs). Operating profit and ordinary profit (up 8.5%) increased mainly reflecting an increase in sales in Career SBU, driven by brisk corporate demand for hiring. However, net profit attributable to owners of parent decreased 35.5 % due in part to the impairment of domestic and overseas subsidiaries.

Revenue in the Staffing SBU, where the group operates its temporary staffing business, including mainly clerical and administrative staff dispatching and a wide range of staffing services, BPO (business process outsourcing) and placement service mainly for administrative talent in Japan, stood at JPY 618.48 billion (USD 4.54 billion), increasing 7.4%. Sales increased on strong results of public-related projects in the BPO sector, in addition to a year-on-year increase in the number of temporary active staff.

In the Career SBU, the Group mainly operates placement business, supporting corporate clients' mid-career hiring activities, and job recruitment media business. Revenue stood at JPY 104.46 billion (USD 767.0 million), increasing 38.8%.

In the Professional Outsourcing segment, the group operates a manufacturing and development outsourcing business in IT and engineering areas and a temporary staffing business specialised in engineer dispatching. Revenue stood at JPY 134.08 billion (USD 984.5 million), up 10.7%. Sales increased because the engineering area saw growth in demand, mainly for development in the manufacturing industry.

In the Solution segment, the group provides digital solution services for hiring talent and managing human resources and creates new businesses through incubation programmes. Revenue stood at JPY 15.43 billion (USD 113.3 million), increasing 38.2%. Sales increased due to the continued growth of the job search application business and cloud POS (point of service) business, mainly reflecting growth in corporate demand for hiring and the effect of sales promotion activities.

In the Asia Pacific segment, the group operates a temporary staffing business and placement business in Asia and staffing business and maintenance business in Australia (those businesses are operated under the PersolKelly brand in Asia and the Programmed brand in Australia). Revenue stood at JPY 367.78 billion (USD 2.70 billion), an increase of 26.8%.

Sales increased due to the effect of the stronger US dollar and Australian dollar in addition to the progress in the recovery from the impact of the spread of Covid-19 infection and growth in many areas where the group operates.

Kelly Services, which has historically been involved in the joint venture of PersolKelly, reported its results last week .

Looking ahead, the company is forecasting revenue for the full year ending 31 March 2024 of JPY 13.40 billion (USD 98.4 million), operating profit of JPY 545 billion (USD 4.0 billion); adjusted EBITDA at JPY 755 billion (USD 5.54 billion) and profit attributable to owners of parent of JPY 390 billion (USD 2.86 billion).

Persol Holdings shares closed today at JPY 2,872.00 (USD 21.09), up 2.83% on the day and 11.36% below its 52-week high of JPY 3,240.00 (USD 23.79), set on 11 November 2022. The company has a market cap of JPY 651.33 billion (USD 4.78 billion).