Financial Data

During the nine months ended September 30, 2024, according to the Bank of Japan’s Tankan Survey released in September, the Japanese economy saw largely unchanged diffusion indices (DIs) of business conditions for large companies in both the manufacturing and non-manufacturing industries compared to the previous survey. As for the future outlook, the DI for large companies in the manufacturing industry remained almost unchanged, while many large non-manufacturers expected business conditions to worsen amid concerns about weakening consumer sentiment due to higher prices and declining inbound demand due to the yen’s appreciation, as well as increasing human resource shortages.

Under these circumstances, in the Domestic Recruitment Business, which accounts for about 90% of the Company’s consolidated net sales, Japanese companies were still highly motivated to hire employees, with the jobs-to-applicants ratio showing no significant change recently, thanks partly to the government’s labor mobility measures and promotion of human capital management. The mobility of job seekers, which had been declining before the pay increases in April, has improved, and the mobility of middle- and high-class human resources, the core target of our business, remains robust.

Given the market environment described above, the Domestic Recruitment Business has improved its year-on-year sales growth rate. Toward the end of the year, we strive to further increase sales for the current fiscal year by maximizing the number of recruitment interviews arranged by our Group, while prioritizing the quality and quantity of face-to-face communication with our client companies and registered job seekers. Meanwhile, we focus on hiring consultants as an investment for the future. We increased the number of consultants more than planned at the beginning of the period, with a lower turnover rate achieved through retention measures, including the diversification of career paths. Going forward, we will work to expand training programs to further improve productivity.

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

In the Domestic Job Offer Advertising Business, we are seeking 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, personnel expenses are increasing as we are hiring consultants as an investment for the future as planned at the beginning of the period. However, we continue to promote company-wide cost-control measures focusing on advertising expenses and internal IT costs to achieve the financial results forecast for the current fiscal year disclosed to the public.

As a result, for the nine months ended September 30, 2024, net sales reached ¥29,502 million (up 11.3% year on year). By segment, the Domestic Recruitment Business, the Domestic Job Offer Advertising Business, and the Overseas Business had net sales of ¥26,358 million (up 12.5% year on year), ¥290 million (up 19.6% year on year), and ¥2,853 million (up 1.1% year on year), respectively.

In terms of profit, operating income was ¥7,240 million (up 6.1% year on year), ordinary income was ¥7,249 million (up 6.2% year on year), and profit attributable to owners of parent was ¥4,858 million (down 1.3% year on year). By segment, the Domestic Recruitment Business posted ¥7,145 million in profit (up 6.5% year on year), the Domestic Job Offer Advertising Business posted ¥32 million in profit (up 33.3% year on year), and the Overseas Business posted a loss of ¥11 million (a profit of ¥87 million in the same period of the previous fiscal year).

Regarding the consolidated financial results forecast for the fiscal year ending December 31, 2024, there is no change from the consolidated financial results forecast released on August 9, 2024.