WDB Holdings revenue edges up 4%, but profits sink
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WDB Holdings Co. Ltd (2475:TYO), a Japanese holding company that includes the provision of staffing services, reported revenue on 8 November of JPY 25.63 billion (USD 166.7 million) for the second quarter ending 30 September 2024, an increase of 4% over the same quarter in the prior year.
(JPY millions) | Q2 2024 | Q2 2023 | Change | Q1 2024 (USD millions) |
Net sales | 25,633 | 24,654 | 4.0% | 166.7 |
Gross profit | 5,901 | 5,931 | -0.5% | 38.3 |
Gross margin | 23.0% | 24.0% | - | - |
Operating Income | 2,603 | 2,658 | -2.1% | 16.9 |
Net Income | 1,324 | 1,484 | -10.7% | 8.6 |
WDB Holdings is a company mainly engaged in the manpower dispatching business. The company operates in two business segments. The human resource service segment is engaged in the work of client customers mainly through temporary staffing and contracting contracts. The CRO (contract research organisation) business segment supports the drug development of pharmaceutical manufacturers.
In the human resource service business (staffing) segment, net sales were JPY 21.58 billion (USD 140.4 million), up 1.7% over the year. The staffing business mainly focuses on science and research, which accounts for approximately 80% of its revenue.
In the CRO (contract research organisation) segment, net sales were JPY 4.04 billion (USD 26.3 million), up 18.1% year-on-year.
Looking ahead, the company forecasted revenue of JPY 51.80 billion (USD 336.96 million) for the year ended 31 March 2025.
WDB Holdings shares closed on 8 November at JPY 1,738 (USD 11.31), down 0.6% on the day. The company has a market cap of JPY 33.94 billion (USD 220.78 million).