WDB Holdings’ Q1 net sales growth driven by CRO business
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Net sales rose 3.4% at WDB Holdings (2475:TYO) in its fiscal first quarter ended 30 June. Growth was driven by the company’s contract research organization (CRO) business that works to develop pharmaceuticals. The company noted CRO orders have remained strong both within Japan and internationally.
Total CRO net sales rose 17.7% year over year in the first quarter to JPY 1.99 billion (USD 12.4 million).
Meanwhile, net sales in WDB Holdings’ staffing business rose 1.2% to JPY 10.92 billion (USD 67.8 million).
The lion’s share of its staffing business, 80%, is scientific staffing. The company also provides engineering and office/clerical staffing. Clients include Tokyo University, Mitsubishi Chemical and Osaka University, according to the firm’s earnings report.
WDB also reported that it raised compensation for its temporary staff by an average of 5.6% in April.
WDB Holdings released earnings on 9 August. The company ranks as the 21st-largest staffing provider in Japan, according to SIA data. It’s headquartered in Hyogo, Japan, and has a head office in Tokyo as well.
WDB Holdings - Q1 2024
(JPY thousands) | Q1 2024 | Q1 2023 | % change | Q1 2024 (USD thousands) |
Net sales | 12,895,309 | 12,469,705 | 3.4% | 80,080 |
Gross profit | 3,000,389 | 2,955,887 | 1.5% | 18,632 |
Gross margin | 23.3% | 23.7% | - | - |
Net profit | 630,559 | 679,849 | -7.3% | 3,916 |
Net Sales by Segment
(JPY thousands) | Q1 2024 | Q1 2023 | % change | Q1 2024 (USD thousands) |
Human resources (staffing) | 10,916,739 | 10,789,675 | 1.2% | 67,793 |
CRO | 1,989,895 | 1,690,398 | 17.7% | 12,357 |
Guidance
WDB forecast net sales to grow 5.1% in the current fiscal year. The projection is unchanged from its previous estimate in May.
Share Price
Shares in WDB Holdings closed up 2.95% to JPY 1,642 (USD 11.19) in Tokyo on 9 August. They were 10.95% above their 52-week low.