Japanese staffing giant Persol (2181: JP) reported revenue today for the nine months ended 31 December 2022 of JPY 902.06 billion (USD 6.89 billion), an increase of 15.6% when compared to the previous period.

The group noted that sales increased in all SBUs (strategic business units). The increase in operating profit mainly reflected an increase in sales in the Career SBU, driven by brisk corporate demand.

In the Staffing SBU segment, the group operates a temporary staffing business, including mainly clerical and administrative staff dispatching but covering a wide range of other staffing services, as well as BPO and placement services mainly for administrative talent in Japan. Revenue for the nine months ended December 31, 2022 increased by 8.2% over the year. 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 active temporary staff. Operating profit decreased despite the effect of increased sales, more than offset by an increase in paid holidays taken by temporary staff, an increase in social insurance contributions and an increase in personnel expenses.

In the Career SBU segment, the group mainly operates a placement business, supporting corporate clients' mid-career hiring activities, and a job recruitment media business. Revenue increased by 39.9%. Sales in the segment increased due to strong corporate demand. Operating profit increased significantly on stronger sales, offsetting the rise in costs that resulted from marketing investment and the enhancement of hiring activities, which were aimed at achieving future growth.

In the Professional Outsourcing SBU, the group operates a manufacturing and development outsourcing business in IT and engineering areas and a temporary staffing business specialised in engineer dispatching. Revenue increased by 10.7%. Revenue increased because the engineering area saw growth in demand, mainly for development in the manufacturing industry. An additional factor was steady growth in the IT area. Operating profit increased due to the effect of increased sales.

In the Solution SBU, the group provides digital solution services for hiring talent and managing human resources and creates new businesses through incubation programmes. Sales for the nine months period increased by 39.7%. Sales increased due to the continued growth of the job search application business and the cloud point of sale business, mainly reflecting growth in corporate demand for hiring and the effect of sales promotion activities. An operating loss was recorded due to an increase in costs, which resulted from increased investments for future growth.

In the Asia Pacific SBU, the group operates a temporary staffing business and placement business in Asia and staffing business and maintenance business in Australia.These businesses operate under the PersolKelly brand in Asia and under the Programmed brand in Australia.) Revenue increased by 26.4% over the year. Revenue 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.

Looking ahead, Persol forecast revenue of JPY 1.21 trillion (USD 9.24 billion) for the full year period ended 31 March 2023.

Persol Holdings shares closed at JPY 2,887.00 (USD 22.06), down 1.10% on the day and 10.90% below its 52-week high of JPY 3,240.00 (USD 24.76), set on 11 November 2022. The company has a market cap of JPY 690.94 billion (USD 5.28 billion).