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Recruit Holdings Co., Ltd. Announces Q1 FY2024 Financial Results

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Recruit Holdings Co., Ltd. announced its Q1 FY2024 financial results, highlighting significant growth across all key metrics. The company reported a 6.0% increase in revenue, reaching ¥901.56 billion, driven by strong performances in its HR Technology, Matching & Solutions, and Staffing segments. Gross profit rose to ¥530.64 billion, and operating income increased by 5.1% to ¥127.82 billion. Net profit attributable to owners was ¥106.43 billion, an 8.5% year-on-year increase. The HR Technology segment led with a 10.6% revenue increase, while the Staffing segment grew by 5.3%. The company also announced a share repurchase program to enhance shareholder returns and maintained its financial guidance for FY2024.

Tokyo, August 8, 2024 – Recruit Holdings Co., Ltd. (TSE 6098) today announced its consolidated financial results for the first quarter of the fiscal year ending June 30, 2024. The company reported strong growth across key financial metrics, reflecting robust performance in its core business segments.

Key Financial Highlights for Q1 FY2024:

  • Revenue: Recruit Holdings reported total revenue of ¥901.56 billion for Q1 FY2024, representing a 6.0% increase compared to ¥850.83 billion in the same period last year. This growth was driven by solid performance across all major business segments.
  • Gross Profit: Gross profit for the quarter rose to ¥530.64 billion, up from ¥495.62 billion in Q1 FY2023, highlighting the company’s efficient cost management and operational effectiveness.
  • Operating Income: Operating income increased by 5.1% year-on-year, reaching ¥127.82 billion compared to ¥121.65 billion in the previous year. This improvement was supported by higher revenues and controlled expenses.
  • Net Profit: Profit attributable to owners of the parent was ¥106.43 billion, marking an 8.5% increase from ¥98.06 billion in the prior year. This growth underscores the company’s ability to generate strong earnings amidst a competitive market landscape.
  • Adjusted EBITDA: Adjusted EBITDA for the quarter was ¥179.06 billion, a 7.9% increase from ¥165.92 billion in Q1 FY2023. The Adjusted EBITDA margin improved to 19.9% from 19.5%, reflecting enhanced profitability.

Segment Performance:

  • HR Technology: The HR Technology segment achieved revenue of ¥285.11 billion, a 10.6% increase from the previous year. Adjusted EBITDA for HR Technology was ¥100.22 billion, with an Adjusted EBITDA margin of 35.2%. The segment’s growth was driven by increased adoption of its innovative HR solutions in the U.S., Japan, and other international markets.
  • Matching & Solutions: This segment reported revenue of ¥202.93 billion, a 1.5% year-on-year increase. Adjusted EBITDA for the segment was ¥51.72 billion, with a margin of 25.5%. Within this segment, the Marketing Solutions business grew by 7.7%, offsetting a slight decline in HR Solutions.
  • Staffing: The Staffing segment saw revenue growth of 5.3%, reaching ¥422.52 billion. Adjusted EBITDA for Staffing was ¥28.62 billion, with an Adjusted EBITDA margin of 6.8%. This growth was supported by steady demand in Japan and continued expansion in Europe, the U.S., and Australia.

Key Developments:

  • Share Repurchase Program: On July 9, 2024, the Board of Directors resolved to repurchase up to 87 million shares of common stock, with a maximum purchase amount of ¥600 billion. This initiative aims to enhance capital efficiency and maximize shareholder returns. As of July 31, 2024, the company had repurchased 11.92 million shares at a total cost of ¥108.38 billion.
  • Financial Guidance: The company has maintained its financial guidance for the full fiscal year 2024, as announced on May 15, 2024. Recruit Holdings anticipates revenue between ¥3,300 billion and ¥3,500 billion, adjusted EBITDA between ¥570 billion and ¥675 billion, and operating income between ¥390 billion and ¥500 billion.

Forward-Looking Statements: This document contains forward-looking statements based on current assumptions and forecasts made by Recruit Holdings Co., Ltd. Management. Various risks and uncertainties could cause actual results to differ materially from those projected. These statements reflect the company’s expectations as of the date of this document and are subject to change without notice.

About Recruit Holdings Co., Ltd.: Recruit Holdings Co., Ltd. is a global leader in HR technology and staffing solutions. The company’s mission is to create opportunities for individuals and businesses through innovation and technology. With a diverse portfolio of services, Recruit Holdings helps connect people with the jobs and resources they need to succeed.

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