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View All NewsJapan – UT Group first quarter net sales rises 36.8% but profits plummet
Engineering and technical staffing firm UT Group Co. Ltd. (2146:TYO) reported net sales on Friday rose by 36.8% in the first quarter. Operating profit was down 35.4%.
| (JPY millions) | Q1 2021 | Q1 2020 | % change | Q1 2021 (USD millions) |
| Net sales | 72,578 | 52,035 | 36.8% | 639.8 |
| Gross profit | 12,459 | 9,645 | 29.2% | 109.8 |
| Gross margin | 17.1% | 18.5% | ||
| Operating profit | 2,271 | 3,515 | -35.4% | 20.02 |
| EBITDA | 2,887 | 3,870 | -25.4% | 25.4 |
| Net Profit | 710 | 2,332 | -69.6% | 6.2 |
The company said it saw a record-high number in quarterly new hires, and significantly increased both the number of technical employees and sales.
A decline in profit was caused by a one-off increase in hiring-related expenses, as hiring activities were strengthened to accelerate sales growth.
UT Group earlier this year acquired a 51% stake in Fujitsu FSAS Creative Inc., a provider of office staff and IT and communications-related engineers.
Looking ahead the company forecasted revenue of JPY 160 billion (USD 1.41 billion) for the full year ended 31 March 2022.
Shares in UT Group closed on Friday at JPY 3,755 (USD 33.11), up 2.73% on the day. The company has a market cap of JPY 162.26 billion (USD 1.43 billion).