Persol (2181:JP), the Japanese staffing giant, reported revenue today for the full year ended 31 March 2021 of JPY 950.7 billion (USD 8.69 billion), a fall of 2.0% when compared to the previous year.

Revenue was down as a result of significant decreased sales due to Covid-19 and the termination of one of the group’s businesses in its Career SBU (strategic business unit), although Staffing SBU, the company’s core business, and Professional Outsourcing SBU reported increases in sales.

Operating profit dropped significantly year-on-year due to lower sales from the Career SBU businesses.

Persol added that it had recorded an extraordinary loss of JPY 19.3 billion (USD 176.4 million) mainly due to a goodwill impairment loss relating to overseas businesses in FY 2019.

Revenue by segment (SBU)

In the Staffing SBU segment, the group operates temporary staffing business, including mainly clerical and administrative staff dispatching and a wide range of staffing services, BPO (Business Process Outsourcing) and job referral service businesses mainly for administrative talent in Japan. Revenue increased in the temporary staffing business as a result of an increase in operating days by 3 from that of the previous fiscal year and increased unit billing rates in accordance with “equal pay for equal work”.

In Career SBU, the group operates a placement business, supporting corporate client mid-career hiring activities, and a job recruitment media business. Revenue decreased because the group said it will take time until the number of orders received in both placement business and job recruitment media business recovers to the level before the outbreak of Covid-19 though it is on the rise. Revenue was also down due to the termination of one of its businesses in November 2019.

In Professional Outsourcing SBU the group operates outsourcing business in IT and engineering areas and temporary staffing business specialised in engineerdispatching. Revenue increased because business in the IT sectormaintained high growth and as a result of the assignment of new graduates and non-active engineers in the engineering area.

In the Solution SBU, the group provides digital solution services for hiring talent and human resource management, and creates new businesses through an incubation program. Revenue was down as a result of weaker demand by companies to hire due to concerns about Covid-19 and the effect of the administrative request for restraint in operation made to restaurants even though the business has been expanding.

In the Asia Pacific segment, the group operates a temporary staffing business and placement business in Asia and human resource-related business and maintenance business in Australia (these businesses are operated under the PersolKelly brand in Asia and under the Programmed brand in Australia). Revenue was down because of a delay in the recovery of the economy in Asia which has been in a slump due to Covid-19 except Singapore that showed a growth of temporary staffing business as well as China and Australia that showed recovery of placement business and blue-collar staffing business, respectively.

In February 2021, Persol announced a number of leadership changes, all of which were filled through internal promotions, which took effect from 1 April 2021. From that date, Masamichi Mizuta who had been President and CEO become Chairman, Takao Wada who had been Deputy President and Executive Officer was appointed President and CEO, while Hirotoshi Takahashi who had been Deputy President and Executive Officer became Deputy President.

Looking ahead at FY 2021, revenue, operating profit and net profit attributable to owners of parent company are expected to be JPY 1 trillion (USD 9.14 billion), JPY 35.0 billion (USD 320.0 million), and JPY 18.5 billion (USD 169.14 million), respectively.

According to SIA’s report Largest Staffing Firms in Japan report, Persol was the 2nd largest staffing firm in Japan based on revenue.

Kelly Services, which is involved in the joint venture of PersolKelly, reported its results yesterday.

Shares in Persol closed at 1,996.00 (USD 18.25), up 2.94% on the day and 15.14% below its 52-week high of JPY 2,352.00 (USD 21.51), set on 18 March 2021. The company has a market cap of JPY 458.97 billion (USD 4.19 billion).