JAC Recruitment (2124) Q4 2024 earnings summary

Executive summary

• Revenue/net sales reached a record JPY39.15 billion in FY2024, up 13.6% year-over-year, driven by strong Domestic Recruitment and recovery in job seeker mobility.

• Operating profit rose 10.7% to JPY9.09 billion, and ordinary income increased 11.1% to JPY9.12 billion, both exceeding revised forecasts.

• Profit attributable to owners declined 6.1% to JPY5.61 billion due to one-time impairment losses on non-current assets, including goodwill.

• Domestic Recruitment Business accounted for about 90% of consolidated net sales, with notable growth in middle- and high-class placements.

• Overseas Business faced challenging market conditions in Asia but improved profitability in Europe.

Financial highlights

• Gross profit increased 13.9% to JPY36.25 billion year-over-year, with a gross profit margin of 92.6%.

• EBITDA increased 9.7% to JPY9.74 billion; EBITDA margin slightly decreased to 24.9% from 25.7%.

• Operating income margin decreased by 0.6 points to 23.2%.

• Net assets at year-end were JPY18.10 billion, equity ratio 69.6%.

• Cash and cash equivalents at year-end were JPY19.05 billion, up JPY2.28 billion from the previous year.

Outlook and guidance

• FY2025 revenue/net sales forecast at JPY44.9 billion (+14.7%), with operating profit projected at JPY10.0 billion (+10.0%).

• Profit attributable to owners forecast at JPY7.0 billion (+24.8%).

• Medium-term plan targets JPY59.1 billion revenue and JPY14.4 billion operating profit by FY2027.

• Planned year-end dividend of JPY32 per share for FY2025.

• Focus on high-value transactions and continued investment in consultant recruitment and training.