Home News Earnings
Recruit Holdings Reports FY2023 Earnings with ¥3,416.4 Billion Revenue and Significant Profit Growth
May 15, 2024
Recruit Holdings Co., Ltd. announced its financial results for FY2023, showing a slight revenue decrease but significant profitability improvements. Revenue was ¥3,416.4 billion, down 0.4%, while adjusted EBITDA rose 9.8% to ¥598.3 billion. Operating income increased 16.9% to ¥402.5 billion, and profit attributable to owners rose 31.1% to ¥353.6 billion. EPS grew by 34% to ¥225.99. Total assets increased by 12.6% to ¥3,144.6 billion, with equity rising 23% to ¥2,000.9 billion. Cash flows from operating activities increased to ¥535.3 billion. Dividends were declared at ¥23.00 per share, with a forecasted rise to ¥24.00 for FY2024. The HR Technology segment faced revenue declines, but Matching & Solutions and Staffing segments saw growth. Management emphasized technological innovation and global expansion for sustainable growth.

Tokyo, May 15, 2024 — Recruit Holdings Co., Ltd. (TSE 6098) announced its consolidated financial results for the fiscal year ended March 31, 2024. Despite a slight decrease in revenue, the company achieved significant improvements in profitability.

Financial Highlights

Revenue and Profit Recruit Holdings reported revenue of ¥3,416.4 billion for FY2023, a slight decrease of 0.4% compared to the previous fiscal year. Despite this revenue dip, the company saw a 9.8% increase in adjusted EBITDA to ¥598.3 billion. Operating income rose by 16.9% to ¥402.5 billion. Additionally, profit attributable to owners of the parent increased by 31.1% to ¥353.6 billion.

Earnings Per Share Basic earnings per share (EPS) increased from ¥168.59 in the previous fiscal year to ¥225.99, a 34% rise. Adjusted EPS was ¥241.11, up 20.9% year-over-year.

Assets and Liabilities

As of March 31, 2024, Recruit Holdings' total assets increased to ¥3,144.6 billion, a 12.6% rise from the previous year. Equity attributable to owners of the parent grew from ¥1,627.0 billion to ¥2,000.9 billion, a 23% increase.

Cash Flows

The company generated ¥535.3 billion in net cash from operating activities in FY2023, up from ¥438.1 billion in the previous year. Net cash used in investing activities was ¥68.7 billion, while net cash used in financing activities was ¥334.6 billion. Cash and cash equivalents at the end of the year totaled ¥1,136.8 billion.

Dividends and Financial Outlook

Recruit Holdings declared a total dividend of ¥23.00 per share for FY2023 and forecasts an increase to ¥24.00 per share for FY2024. For the upcoming fiscal year, the company expects revenue to be between ¥3,300.0 billion and ¥3,500.0 billion, with adjusted EBITDA ranging from ¥570.0 billion to ¥675.0 billion.

Segment Performance

HR Technology The HR Technology segment reported revenue of ¥1,011.8 billion, down 9.3% year-over-year. On a US dollar basis, revenue declined by 15.0%. In the US market, revenue decreased by 13.1% due to reduced demand for sponsored jobs. Outside the US, revenue fell by 3.0%. Despite the revenue drop, the segment's adjusted EBITDA grew by 0.6% to ¥344.3 billion, with an adjusted EBITDA margin of 34.0%.

Matching & Solutions The Matching & Solutions segment's revenue increased from ¥760.6 billion to ¥807.8 billion, a 6.2% rise. Adjusted EBITDA for this segment soared by 49.0% to ¥163.6 billion.

Staffing The Staffing segment saw revenue grow from ¥1,585.2 billion to ¥1,634.2 billion, up 3.1%. This growth was driven by strong demand in the Japanese market, despite a decline in Europe, the US, and Australia.

Management Comments

Company management highlighted that despite global economic uncertainties, Recruit Holdings made significant strides in improving operational efficiency and profit margins. Looking forward, the company plans to continue focusing on technological innovation and expanding its global market presence to achieve sustainable growth and long-term value creation.

About Recruit Holdings

Founded in 1960, Recruit Holdings began as a company providing job information to students. Today, it operates through three main segments: HR Technology, Matching & Solutions, and Staffing. The company leverages technology and data to enhance matching efficiency, helping individual users and business clients achieve optimal matches.
You may also like...
Follow us: