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View All NewsJapan – Persol second quarter revenue growth boosted by Solution business
Japanese staffing giant Persol (2181: JP), reported revenue today for the second quarter ended 30 September 2021 of JPY 262.4 billion (USD 2.30 billion), an increase of 15.3% compared to the same period last year.
Revenue in the Solution strategic business unit rose by 124.1% while the other business units also reported growth in the second quarter of 2021.
| (JPY millions) | Q2 2021 | Q2 2020 | Change | Q2 2021 (USD millions) |
| Revenue | 262,415 | 227,533 | 15.3% | 2,302.9 |
| Operating Profit | 13,597 | 4,760 | 185.6% | 119.3 |
| EBITDA | 18,263 | 8,962 | 103.7% | 160.2 |
| Net Income | 7,060 | 2,974 | 137.4% | 61.9 |
Q2 Revenue by segment
| (JPY millions) | Q2 2020 | Q2 2020 | Change | Q2 2021 (USD millions) |
| Staffing | 141,507 | 129,605 | 9.2% | 1,241.8 |
| Career | 17,339 | 12,887 | 34.5% | 152.1 |
| Professional Outsourcing | 29,526 | 27,281 | 8.2% | 259.1 |
| Solution | 2,773 | 1,237 | 124.1% | 24.3 |
| APAC | 74,198 | 58,684 | 26.4% | 651.1 |
| Other | 3,028 | 2,656 | 14.0% | 26.5 |
| Adjustment | -5,958 | -4,819 | - | -52.2 |
Revenue for the six month period ended 30 September 2021 stood at JPY 512.84 billion, an increase of 10.1% over the previous year.
Within the Staffing segment, both revenue and profit increased in H1 because the core temporary staffing sector remained strong. The segment saw a turnaround in the number of temporary active staff to a year-on-year rise, while orders remained robust, mainly in public related projects in the BPO sector.
Both revenue and profit increased in H1 in the Career unit due to the market recovery and consolidation and enhancement of sales capabilities. Both the placement business and job recruitment media business were strong.
Within Professional Outsourcing, both revenue and profits increased in H1 because the IT area continued stable growth and the engineering area saw a steady recovery in demand.
In the Solution unit, revenue increased in the "MIIDAS" job search application business and the "POS+" cloud business during the H1 period.
Sales of both PersolKelly and Programmed (Persol’s Australian brand) increased in H1 due to progress in the recoveryand also benefited from the effect of foreign exchange rates. In PersolKelly, sales recovered to the pre-Covid-19 level in most regions. In Programmed, Sales increased due to the recovery from Covid-19 in addition to the appreciation of the Australian dollar.
Within the ‘Other’ segment, sales increased over the year with a recovery in the training business.
The group noted that the strong increase in profit over the year had been tempered following an increase in costs associated with the response to the promotion of remote work, workplace vaccination, and other events.
Looking ahead, the company said for the fiscal year ending 31 March 2022, the market recovery is expected to make steady progress in the second half of the year as in the first half, with full-year revenue expected to reach JPY 1.06 trillion (USD 9.30 billion) and full-year operating profit anticipated at JPY 48 billion (USD 421.18 million), both record high figures.
Shares in Persol Holdings last traded at JPY 3,000 (USD 26.32), down 0.83% on the day. The company has a market cap of JPY 716.03 billion (USD 6.28 billion).