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View All NewsPasona Group full year revenue ticks up 1.8% but expenses hit operating and net profits
Japanese staffing giant Pasona Group (2168: JP), reported revenue for the full-year ending 31 May 2023 of JPY 372.58 billion (USD 2.68 billion), an increase of 1.8% compared with last year.
The company has not provided results for its fourth quarter but nine month revenue had grown by 2.4% suggesting a weaker performance in Q4 2023.
| (JPY millions) | FY 2022 | FY 2021 | Change | FY 2022 (USD millions) |
| Revenue | 372,579 | 366,096 | 1.8% | 2,687.4 |
| Gross Profit | 91,525 | 89,671 | 2.0% | 660.1 |
| Gross Margin | 24.5% | 24.5% | - | - |
| Operating Profit | 14,377 | 22,083 | -34.9% | 103.7 |
| Profit attributable to owners of parent | 6,099 | 8,621 | -29.3% | 43.9 |
Pasona said that, as the social environment changed to a post-Covid situation, the BPO Services and Outsourcing business expanded in the group, and sales of Regional Revitalisation Solutions also grew as the number of tourists increased due to the end of Covid-19 pandemic.
Expert Services remained below the previous year's level due to the earlier-than-expected completion of work related to control measures as Covid-19 infections were contained, as well as due to the lack of large-scale corporate structural reforms in the outplacement business of Career Solutions.
SG&A expenses increased 14.1% year-on-year, mainly due to duplicate costs in the process of integrating services of the former JTB Benefit in Outsourcing and expenses related to large-scale promotions, as well as one-time expenses associated with the relocation of the Tokyo office in the first quarter. This led to lower profits.
Revenue in the HR Solutions segment is broken down as follows:
| (JPY millions) | FY 2022 | FY 2021 | Change | FY 2022 (USD millions) |
| Expert Services (Temporary staffing), Insourcing (Contracting), Others | 307,687 | 308,093 | -0.1% | 2,219.4 |
| Career Solutions (Placement/Recruiting, Outplacement) | 13,923 | 14,700 | -5.3% | 100.4 |
| Outsourcing | 42,376 | 38,359 | 10.5% | 305.6 |
| HR Solutions Total | 363,987 | 361,154 | 0.8% | 2,625.5 |
Looking ahead the company forecasted revenue of JPY 390.0 billion for the year ended 31 May 2024.
Pasona Group shares closed at JPY 1,735.00 (USD 12.52), no change on the day and 6.38% above its 52-week low of JPY 1,631.00 (USD 11.76), set on 27 June 2023. The company has a market cap of JPY 72.33 billion (USD 521.71 million).