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View All NewsS-Pool Q1 revenue falls 7.1% as HR services sales slip
S-Pool Inc. (2471:TYO), a Tokyo-based staffing provider reported revenue today of JPY 5.65 billion (USD 36.9 million), down 7.1% year over year in the three months ended 29 February, the first quarter of its fiscal year.
| (JPY millions) | Q1 2024 | Q1 2023 | % change | Q1 2024 (USD millions) |
| Net sales | 5,658 | 6,089 | -7.1% | 36.9 |
| Gross profit | 1,655 | 1,854 | -10.7% | 10.8 |
| Gross margin | 29.2% | 30.4% | - | - |
| Operating profit | 25 | 384 | -93.3% | 0.1 |
| Pre-tax profit | -13 | 360 | - | -0.1 |
| Net profit | 261 | 230 | 13.2% | 1.7 |
The company said the reactionary drop in human resource outsourcing services had a major impact on overall performance. The business solutions segment suffered a sharp decline in profits though quarterly net profit increased due to the recording of deferred tax assets.
Revenue by segment
| (JPY millions) | Q1 2023 | Q1 2022 | % change | Q1 2023 (USD millions) |
| Business solutions | 2,827 | 2,499 | 13.1% | 18.4 |
| Human resource solutions | 2,852 | 3,615 | -21.1% | 18.6 |
| Adjustments | -20 | -25 | - | -0.1 |
| Total | 5,658 | 6,089 | -7.1% | 36.9 |
In the business solutions segment, sales were strong for special needs employment services. The
balance of orders received climbed sharply. Despite lower sales of wide-area administrative BPO services, the group made progress in building up projects to restore sales.
In the HR solutions segment, sales were down sharply due to a drop in call-centre spot transactions and the effects of fewer business days. Temporary staffing business related to Covid-19 largely disappeared in Q1. A focus on business related to inbound tourism helped halt a slump in sales for sales support.
Despite lower sales attributable to various factors, including a downturn in the human resource solutions segment, the group said it achieved planned targets. After a slow start, the company said it is making various preparations to reinvigorate sales starting in H2.
Looking ahead the company forecasted revenue of JPY 27.06 billion (USD 176.50 million) for the year ended 30 November 2024.
S-Pool shares closed at JPY 308.00 (USD 2.01), down 1.28% on the day and 4.76% above its 52-week low of JPY 294.00 (USD 1.92), set on 16 February 2024. The company has a market cap of JPY 24.65 billion (USD 160.77 million).