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Sales up over 38% YoY in Q3 2018 for PERSOL

PERSOL Group has released its results for the third quarter of 2018.


Sales during this consolidated cumulative third quarter were JPY 685,231m (up 38.4% year-on-year (YoY)), operating profit was JPY 32,074m (up 23.8% YoY), ordinary profit was JPY 32,193m (up 23.3% YoY), and quarterly net profit attributable to parent company shareholders was JPY 18,738m (up 72.3% YoY).


Sales in the temporary staffing/BPO segment during this cumulative third quarter consolidated period amounted to JPY 378,435m (up 5.3% year-on-year (YoY)), and operating profit was JPY 18,015m (up 6.5% YoY).  With a transition to high levels of corporate results and structural shortages of labour as a backdrop to this consolidated cumulative third quarter period, demand continued to be strong resulting in sales of JPY 378,435m. On the profit side of the business, there was an increase in costs related to the merger of subsidiaries, but on the other hand, there was an increase in placement fee revenues associated with effects of revisions to Japanese laws that led to corporate clients directly hiring workers. As a result of sales and general administration (SGA) expense control, operating profit was JPY 18,015m.


Sales in the recruiting segment amounted to JPY 62,249m (up 18.0% YoY) during this consolidated cumulative third quarter period, and operating profit was JPY 10,770m (up 56.3% YoY).  Sales in this segment during this consolidated cumulative third quarter period amounted to JPY 62,249m, which were underpinned by continued healthy demand for talent and a shift in awareness relating to changing jobs was mainly reflected in an increase in the number of hire contracts that were successfully closed etc. leading to sales of JPY 62,249m. On the profit side, marketing costs relating to "doda" branded recruiting declined, and sales structures were reinforced by actively investing in headcount which culminated in a growth of costs. However, the HR placement business played a leading role in expanding sales which resulted in earnings growth exceeding cost growth, leading to operating profit of JPY 10,770m.


Sales in the PROGRAMMED segment amounted to JPY 151,331m during this consolidated cumulative third quarter period, and operating profit was JPY 237m (operating loss in the same period last year was JPY 804m).  The competitive environment faced by the staffing business changed this consolidated cumulative third quarter period, which in turn led to a decline in sales to existing clients. The maintenance business also experienced declines in sales of maintenance services to public sector facilities as well as a decline in equipment maintenance provided at mining facilities, which resulted in sales of JPY 151,331m. On the profit side, operating profit was JPY 237m as a result of operating cost reductions. Furthermore, shares of Programmed Maintenance Services Limited were acquired for the PROGRAMMED segment during the previous consolidated cumulative third quarter period leading to a new consolidated subsidiary, and the establishment of a new segment. The closing day of the consolidated cumulative third quarter period for PERSOL Group by three months and the deemed acquisition date of the combined corporation was 30th September 2017 whereby the results of the corporation targeted for acquisition were not included in the previous consolidated cumulative 3rd quarter period; it was only the costs associated with the acquisition that were included in the calculations.


Sales in the PERSOLKELLY segment during this consolidated cumulative third quarter period were JPY 55,495m (up 14.5% YoY), and operating profit was JPY 647m (operating loss in the same period last year was JPY 314m). Sales in this segment during this consolidated cumulative third quarter period amounted to JPY 55,495m, which was the result of expanded sales structures achieved through active strengthening of sales team headcount etc. in response to the buoyant APAC market environment. On the profit side, operating profit was JPY 647m reflecting an increase in labour costs etc., but on the other hand, revenues from services centered primarily on placement services exceeded cost growth.


Sales in the ITO segment during this consolidated cumulative third quarter period amounted to JPY 23,869m (up 13.6% year-on-year (YoY)), and operating profit was JPY 844m (down 36.7% YoY). Sales in this segment during this consolidated cumulative third quarter period amounted to JPY 23,869m, which was the result of progress made in securing engineers in response to healthy demand. On the profit side, operating profit was JPY 844m as a result of growing costs etc. due to improvements in benefits and proactive business expansion related costs.


Sales in the engineering segment amounted to JPY 21,371m (up 6.0% YoY) during this consolidated cumulative third quarter period, and operating profit was JPY 1,816m (up 25.1% YoY).  Sales during this consolidated cumulative third quarter period amounted to JPY 21,371m, which had as a backdrop bullish ordering from clients underpinned by favourable demand for development services in the core automobile related sector. On the profit side, operating profit was JPY 1,816m supported by a healthy flow of orders.


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