Daily News
View All NewsPasona nine-month revenue slides 4.2%, HR solutions business down
Japanese staffing firm Pasona Group (2168: JP), reported revenue today for the nine months ended 29 February 2024 of JPY 265.5 billion (USD 1.73 billion), a fall of 4.2% over the year.
During the nine-month period, revenue decreased from the previous fiscal year in the expert services and outsourcing segments due to a decrease in emergency demand related to countermeasures for the Covid-19 infection up to the previous fiscal year, while revenue increased in BPO Services due to an increase in new project contracts.
The group also noted that the decline in revenue from the regional revitalisations solutions business was due to technical factors, as the previous third quarter included five months' results instead of three months due to the effect of a change in the fiscal year end at some subsidiaries in the previous fiscal year. In this segment, the company is engaged in regional development projects to create new industries and employment in rural areas in cooperation and collaboration with local residents, local companies, and local governments.
| (JPY millions) | 9 months 2024 | 9 months 2023 | Change | 9 months 2024 |
| Revenue | 265,558 | 277,280 | -4.2% | 1,732.8 |
| Gross profit | 62,450 | 67,813 | -7.9% | 407.5 |
| Gross margin | 23.5% | 24.40% | - | |
| Operating income | 4,674 | 10,664 | -56.2% | 30.5 |
| Net loss/income | -753 | 3,948 | - | 4.9 |
Gross margin was partly due to lower gross profit margin caused by decreased special demand.
The group’s net loss was a significant decrease from the previous fiscal year, when extraordinary gains such as gains on sales of investment securities were recorded.
Through its subsidiaries, Pasona provides human resource solutions in Japan and internationally. It offers temporary staffing/contracting, outsourcing, and outplacement services. It also offers additional services, such as childcare; foreign language education abroad; public solutions, such as employment of persons with disabilities; and other social welfare businesses.
Revenue in the HR Solutions segment fell by 3.9% over the year.
| (JPY millions) | 9 months 2024 | 9 months 2023 | Change | 9 months 2024 |
| Expert Services (Temporary staffing), BPO Services (Contracting), Others | 222,008 | 229,463 | -3.2% | 1,448.8 |
| Career Solutions (Placement / Recruiting, Outplacement) | 9,909 | 10,305 | -3.8% | 64.6 |
| Outsourcing | 28,376 | 31,022 | -8.5% | 185.2 |
| HR Solutions | 260,293 | 270,791 | -3.9% | 1,698.7 |
Revenue in the life solutions segment was down 7.0% during the period while revenue in the regional revitalisation solutions segment fell by 17.5%.
Looking ahead the company forecasted revenue of JPY 370.00 billion (USD 2.41 billion) for the year ended 31 May 2024.
Pasona Group shares closed at JPY 2,700.00 (USD 17.62), up 0.22% on the day and 10.89% below its 52-week high of JPY 3,030.00 (USD 19.77), set on 11 December 2023. The company has a market cap of JPY 112.31 billion (USD 732.94 million).