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Japanese recruiter Pasona Group (2168:TYO) reported on Friday that net sales in the nine months to February rose by +13.5% to JPY 153.6 billion (USD 1.57 billion) from JPY 135.2 billion (USD 1.38 billion) a year ago. However, at the same time, SG&A expenses increased by +14.8%, ahead of the revenue increase.
Pasona is ranked the third-largest staffing company in Japan, competing with other large Japanese staffing firms and international rivals such as Adecco. It also has a number of international operations in Asia and the US.
The firm saw operating income rise to JPY 1.75 billion (USD 17.9 million) in the period from JPY 1.08 billion (USD 11.0 million), a year-on-year increase of +62%. The recruiter posted a net loss of JPY 294 million (USD 3.0 million), against a net loss of JPY 106 million (USD 1.08 million) in the prior year.
Pasona derives the majority of its revenue from temporary staffing, contracting and recruitment services. The firm provides a range of staffing services, including Expert Services (temporary staffing), Insourcing (contracting), Placement & Search (recruitment), Global Sourcing (overseas staffing services). Jointly, these activities saw a +12.7% increase in net sales over the nine month period while utplacement and Outsourcing grew by +23.8% and 17.2% respectively..
In its core temporary staffing business, the company saw increased demand across all sectors apart from Sales & Marketing. Clerical staffing which comprises 57% of the company’s total temporary revenues, grew by +2.4% but was outperformed by Technical (+15.0%) and IT Engineering (+11.5%). The company stated that orders were exhibiting “a recovery trend clearly in the third quarter”.
In support of a recovering market, the company also published a forecast for the fiscal year ending 31 May 2013 estimating net sales up +16.8%, gross profit up +18.6%, and operating income up +52.7%.
In today’s trading, the company’s share price rose +4.6% to JPY 61,400, a decrease of -16% from a year ago. Based on its stock price, Pasona has a market value of JPY 24.47 billion (USD 250.65 million).