Pasona Group (2168) investor relations material

Executive summary

• Net sales increased 0.4% year-over-year to ¥154.5 billion, driven by growth in Expert Solutions, Life Solutions, and Regional Revitalization & Tourism Solutions, while BPO Solutions declined due to the peak-out of large projects.

• Operating profit turned negative at ¥(204) million as higher SG&A expenses, including retirement benefit and IT-related costs, offset gross profit improvements.

• Ordinary profit rose sharply to ¥815 million, supported by Expo 2025-related sponsorship and merchandise sales.

• Net loss attributable to owners was ¥620 million, a significant improvement from the prior year’s ¥3,762 million loss, mainly due to extraordinary losses from Expo exhibit expenses.

• Comprehensive income was negative ¥503 million, improving from the previous year's loss.

Financial highlights

• Consolidated net sales increased 0.4% year-over-year to ¥154,527 million.

• Gross profit margin improved by 0.8pt to 22.8% year-over-year.

• Operating profit margin declined by 0.1pt to -0.1%.

• Ordinary profit rose by ¥625 million to ¥815 million, a 330.4% increase year-over-year.

• Net loss attributable to owners was ¥620 million, improved from a ¥3,762 million loss in the prior year.

Outlook and guidance

• Full-year forecast for FY ending May 31, 2026: Net sales ¥330,000 million (+6.7% YoY), operating profit ¥2,500 million, ordinary profit ¥2,800 million, profit attributable to owners ¥500 million, basic EPS ¥13.19.

• No changes to previously announced full-year forecast.

• Focus on expanding high value-added BPO services, increasing staffing unit prices, and enhancing customer experience in tourism solutions.