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View All NewsPasona Group Q1 revenue slips 2.4% amid sharp falls in outsourcing and expert services
Pasona Group Inc. (2168:TYO), a Tokyo-based staffing firm, reported revenue fell by 2.4% year over year in its fiscal first quarter ended 31 August 2023.
| (JPY millions) | Q1 2023 | Q1 2022 | % change | Q1 2023 (USD millions) |
| Net sales | 89,881 | 92,066 | -2.4% | 600.8 |
| Gross profit | 21,226 | 22,273 | -4.7% | 141.9 |
| Gross margin | 23.6% | 24.2% | - | - |
| Operating Income | 2,228 | 3,330 | 33.1% | 14.8 |
| Net Profit | 187 | 1,293 | -85.5% | 1.2 |
During the three months ended 31 August 2023, the group noted that, while BPO services grew from the same period of the previous year on the back of solid demand growth, expert services and outsourcing sales declined from the same period of the previous year due to a decrease in demand mainly related to measures against the Covid-19 pandemic that occurred in the same period of the previous year.
Addressing its net profit decline, the group said that, although the decrease appears large due to the fact that there was a gain on change in equity resulting from the listing of a subsidiary accounted for via the equity method in the same period of the previous fiscal year, the current year's plan is generally in line with the plan.
Revenue by segment
| (JPY millions) | Q1 2023 | Q1 2022 | % change | Q1 2023 (USD millions) |
| Expert services (temp staffing) | 34,551 | 37,837 | -8.7% | 230.9 |
| Business process outsourcing services | 35,840 | 33,817 | 6.0% | 239.6 |
| HR consulting, education and training | 2,183 | 2,021 | 8.0% | 14.6 |
| Global sourcing (overseas) | 2,545 | 2,395 | 6.3% | 17.0 |
| Career solutions (placement/recruiting, outplacement) | 3,341 | 3,434 | -2.7% | 22.3 |
| Outsourcing | 9,571 | 10,583 | -9.6% | 63.9 |
| Life solutions | 1,923 | 1,963 | -2.0% | 12.8 |
| Regional revitalization solutions | 1,526 | 1,529 | -0.2% | 10.2 |
| Eliminations and corporate | (1,604) | (1,515) | - | -10.7 |
Looking ahead the company forecasted revenue of JPY 390.00 billion (USD billion) for the year ending 31 May 2024.
Pasona Group set a new 52-week low during today's trading session when it reached JPY 1,518.00 (USD 10.15). Over this period, the share price is down -29.26%. the company last traded at JPY 1,521 (USD 10.17), down 4.04% on the day. The company has a market cap of JPY 64.95 billion (USD 434.22 million).