Financial Data

During the fiscal year ended December 31, 2024, the Japanese economy showed an improvement trend in the assessment of business conditions for large companies in both the manufacturing and non-manufacturing industries in the Bank of Japan’s Tankan Survey, driven by economic stimulus such as the recovery in domestic automobile production and robust inbound demand. However, according to the December survey on the future outlook, both industries showed notable deterioration in their assessment due to concerns about changes in trade policies accompanying the U.S. administration change and rising interest rates.

Under these circumstances, in the Domestic Recruitment Business, which accounts for about 90% of the Company’s consolidated net sales, Japanese companies maintained a high level of motivation to hire employees, thanks partly to the government’s labor mobility measures and promotion of human capital management. While job seeker mobility temporarily declined before the pay increases in April 2024, affecting first-half sales, it recovered in the second half, and the movement of middle- and high-class human resources, which forms the core domain of our business, became more active.

As a result, although we revised our full-year consolidated financial results forecast downward at the six months ended June 30, 2024, the year-on-year sales growth rate in the Domestic Recruitment Business improved toward the second half. In particular, as we focused on face-to-face communication with client companies and registered job seekers as our highest priority, consolidated net sales for the fiscal year ended December 31, 2024 exceeded the revised forecast and reached a record high. Additionally, in August, our stock was selected as a constituent of the JPX-Nikkei Index 400.

Regarding the Overseas Business, while market conditions remained difficult, especially in Asia, we worked to achieve regrowth and improve profitability by providing services mainly to Japanese companies with strong hiring needs. We also intended to increase our share of the recruitment market for Japanese companies operating overseas by promoting Global Account Management through coordination between the Company and its subsidiaries in each country.

In the Domestic Job Offer Advertising Business, we sought to expand sales by shifting to a contingency fee model and increasing our contact points with Japanese companies, in addition to foreign companies, while also making sales efforts for direct recruiting by client companies and working on cross-selling through collaboration with our Domestic Recruitment Business.

With regard to selling, general and administrative expenses, although personnel expenses increased as we hired consultants as planned at the beginning of the period as an investment for the future, we continued company-wide cost-control measures focusing on advertising expenses and internal IT costs. As a result, consolidated operating income and ordinary income for the full year exceeded the revised consolidated financial results forecast and reached record highs.

However, profit attributable to owners of parent fell short of the forecast due to the impact of impairment losses on non-current assets, including goodwill, at domestic and overseas subsidiaries and associates.

As a result, for the fiscal year ended December 31, 2024, net sales reached ¥39,156 million (up 13.6% year on year). By segment, the Domestic Recruitment Business, the Domestic Job Offer Advertising Business, and the Overseas Business had net sales of ¥35,009 million (up 14.9% year on year), ¥401 million (up 24.6% year on year), and ¥3,745 million (up 1.8% year on year), respectively.

In terms of profit, operating income was ¥9,090 million (up 10.7% year on year), ordinary income was ¥9,122 million (up 11.1% year on year), and profit attributable to owners of parent was ¥5,611 million (down 6.1% year on year). By segment, the Domestic Recruitment Business posted ¥8,736 million in profit (up 7.9% year on year), the Domestic Job Offer Advertising Business posted ¥59 million in profit (up 76.3% year on year), and the Overseas Business posted a loss of ¥447 million (a profit of ¥76 million for the previous fiscal year).