JAC Recruitment (2124) Q3 2024 earnings summary

Executive summary

• Revenue and ordinary income reached record highs in 3Q FY2024, with both metrics in line with the revised forecast from August 2024.

• Net sales for the nine months ended September 30, 2024, rose 11.3% year-over-year to ¥29,502 million, driven by strong performance in the Domestic Recruitment Business and improved job seeker mobility.

• Operating income increased 6.1% year-over-year to ¥7,240 million, while profit attributable to owners of parent declined 1.3% to ¥4,858 million due to higher personnel expenses and overseas segment losses.

• The Domestic Recruitment Business, accounting for about 90% of consolidated net sales, saw robust demand and improved sales growth, while the Overseas Business faced challenging market conditions, especially in Asia.

Financial highlights

• Revenue/net sales rose 11.3% year-over-year to ¥29,502 million; gross profit up 11.5% to ¥27,307 million.

• Operating profit increased 6.1% to ¥7,240 million; EBITDA up 5.8% to ¥7,729 million.

• Ordinary income grew 6.2% to ¥7,249 million; profit attributable to owners of parent decreased 1.3% to ¥4,858 million.

• Comprehensive income was ¥4,929 million, down 3.0% year-over-year.

• EBITDA margin declined by 1.4 points to 26.2%.

Outlook and guidance

• Full-year forecast for 2024: Net sales of ¥39,000 million (up 13.1%), operating income of ¥8,800 million (up 7.1%), and profit attributable to owners of parent of ¥6,000 million (up 0.4%).

• No change to previously announced guidance.

• Labour costs are expected to rise due to upfront investment in human capital, but cost reductions are planned to secure profit.