WDB Holdings Co. Ltd (2475:TYO), a Japanese holding company that includes the provision of staffing services, reported revenue today of JPY 24,654 billion (USD 162.5 million) for the second quarter ending 30 September 2023, an increase of 4% over the same quarter in the prior year.

While net sales grew, operating income slid by 6.7% to JPY 2,848 billion (USD 18.8 million). The main reason for the decrease in profit was an increase in cost of sales due to the improvement in the treatment of temporary employees. 

WDB Holdings provides four core services primarily in the life sciences segment: human resource services (permanent placement and temporary dispatch), outsourced research services (CRO), R&D/manufacturing, and ‘interaction’ services (M&A and research).

The company said that the Japanese economy normalized following the shift to five new types of coronavirus infectious diseases. According to the government's announcement, the average effective job openings-to-applicants ratio was 1.30 times, an increase of 0.02 points compared to the average for the same period last year. Additionally, the average unemployment rate was 2.6%, the same level as the average for the same period last year. The number of job openings has increased compared to the same period last year. Moreover, an increasing number of companies, especially large companies, are implementing salary increases.

In WDB’s Human Resource Service Business segment, net sales were JPY 21,229 million, up 4.1% over the prior year quarter, while segment profit was JPY 2,295 million, down 9.3%. The company’s focus is on the science and research segment which comprises 79% of temporary staffing business sales with the remainder comprising office clerical (13%) and engineering (6%). Only 1.5% of sales is from permanent recruitment.

The company also said that competition to acquire human resources is becoming more intense. In its staffing services business, the company is working to improve the efficiency of operations through the temporary staffing service platform, doconico and, to this end, are conducting online sales activities and interviewing job seekers at established support desks in Tokyo and Kobe. They also announced that they have made further progress in bringing sales activities conducted at each branch office online. In addition, ChatGPT has been incorporated into doconico enabling support desks to cooperate in responding to inquiries about temporary staffing services and to new temporary staffing requests, thereby further streamlining operations and improving convenience for customers.

The company restated its FY2023 forecast announced in May 2023 of net sales of JPY 51 billion (USD 336 million).

WDB Holdings shares closed at JPY 2,118.00 (USD 13.96), down 4.81% on the day and 17.6% below its 52-week high of JPY 2,569.00 (USD 16.93), set on 17 November 2023. The company has a market cap of JPY 42.49 billion (USD 280 million).