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Pasona Group H1 revenue drops 14%, HR solutions down

Pasona Group H1 revenue drops 14%, HR solutions down

Danny Romero
| January 14, 2025
Financial Manager Interacting with Virtual Dashboard Analyzing Revenue Growth Profit Margins and Financial KPIs for Strategic

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Japanese staffing firm Pasona Group (2168: JP), reported revenue for the six months ended 30 November 2023 of JPY 179.3 billion (USD 1.23 billion), down 2.5% compared with last year.

(JPY millions)

H1 2024

H1 2023

Change

H1 2024 (USD millions)

Revenue

153,934

179,316

-14.2%

973.9

Gross Profit

33,894

42,485

-20.2%

214.4

Gross Margin

22.0%

23.7%

-

-

Operating Profit

44

3,980

-98.9%

0.2

Net Income

-3,762

145

N/A

-23.8

HR Solutions segment

(JPY millions)

H1 2024

H1 2023

Change

H1 2024 (USD millions)

BPO Solutions (Contracting, Outsourcing)

67,709

74,302

-8.9%

428.4

Expert Solutions (Temporary staffing)

68,176

69,877

-2.4%

434.4

Career Solutions (Placement/Recruiting, Outplacement)

7,008

6,810

2.9%

44.3

HR Solutions Total

142,894

150,989

-5.4%

904.1

Revenue in the HR Solutions segment declined in the first half compared to the same period last year, as delays in securing new orders failed to counteract the effects of large contract projects reaching their peak and tapering off.

Pasona said the Outsourcing segment was excluded from the beginning of the current first half period due to the sale of shares in the former consolidated subsidiary Benefit One at the end of the previous fiscal year, and the BPO Solutions segment experienced a peak-out of large outsourcing projects, resulting in a year-on-year decline in both net sales and profits.

Looking ahead the company forecasted revenue of JPY 320 billion (USD 2.0 billion) for the year ended 31 May 2025.

Pasona Group shares closed on 14 January at JPY 2,000.00 (USD 12.65), down 0.25% on the day and 5.21% above its 52-week low of JPY 1,901.00 (USD 12.03), set on 18 November 2024. The company has a market cap of JPY 83.59 billion (USD 528.9 million).