Quarterly trends and results

Consolidated results (quarterly)

Cumulative(JPYmn)		FY08/22				FY08/23				FY08/23
		Q1	Q1-Q2	Q1-Q3	Q1-Q4	Q1	Q1-Q2	Q1-Q3	Q1-Q4	(% of forecast)	FY forecast
Revenue		16,968	31,944	48,332	64,130	17,217				29.2%	59,000
	YoY	28.6%	24.8%	22.5%	14.2%	1.5%					-8.0%
Gross profit		4,182	7,787	11,611	15,228	3,948
	YoY	23.3%	18.2%	21.0%	14.8%	-5.6%
	Gross profit margin	24.6%	24.4%	24.0%	23.7%	22.9%
SG&A expenses		2,206	4,449	6,837	9,487	2,335
	YoY	12.7%	9.0%	14.8%	11.9%	5.8%
	SG&A ratio	13.0%	13.9%	14.1%	14.8%	13.6%
Operating profit		1,976	3,337	4,773	5,739	1,612				34.3%	4,700
	YoY	38.0%	33.1%	30.9%	19.9%	-18.4%					-18.1%
	Operating profit margin	11.6%	10.4%	9.9%	8.9%	9.4%					8.0%
Recurring profit		1,994	3,358	4,800	5,759	1,643				34.8%	4,720
	YoY	30.2%	24.9%	23.4%	12.4%	-17.6%					-18.0%
	Recurring profit margin	11.8%	10.5%	9.9%	9.0%	9.5%					8.0%
Net income		1,167	1,941	2,723	3,227	938				35.4%	2,650
	YoY	30.4%	27.7%	20.9%	16.3%	-19.6%					-17.9%
	Net margin	6.9%	6.1%	5.6%	5.0%	5.4%					4.5%
Quarterly(JPYmn)		FY08/22				FY08/23
		Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4
Revenue		16,968	14,976	16,388	15,798	17,217
	YoY	28.6%	20.7%	18.2%	-5.3%	1.5%
Gross profit		4,182	3,605	3,824	3,617	3,948
	YoY	23.3%	12.7%	27.1%	-1.3%	-5.6%
	Gross profit margin	24.6%	24.1%	23.3%	22.9%	22.9%
SG&A expenses		2,206	2,243	2,388	2,650	2,335
	YoY	12.7%	5.7%	27.6%	5.0%	5.8%
	SG&A ratio	13.0%	15.0%	14.6%	16.8%	13.6%
Operating profit		1,976	1,361	1,436	966	1,612
	YoY	38.0%	26.5%	26.3%	-15.4%	-18.4%
	Operating profit margin	11.6%	9.1%	8.8%	6.1%	9.4%
Recurring profit		1,994	1,364	1,442	959	1,643
	YoY	30.2%	17.8%	20.1%	-22.3%	-17.6%
	Recurring profit margin	11.8%	9.1%	8.8%	6.1%	9.5%
Net income		1,167	774	782	504	938
	YoY	30.4%	23.8%	6.8%	-3.4%	-19.6%
	Net margin	6.9%	5.2%	4.8%	3.2%	5.4%

Note: Figures are after applying the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020).
Note: Figures may differ from company materials due to differences in rounding methods.
Source: Shared Research based on company data.

Segment results (quarterly)

Cumulative(JPYmn)			FY08/22				FY08/23
			Q1	Q1-Q2	Q1-Q3	Q1-Q4	Q1	Q1-Q2	Q1-Q3	Q1-Q4
Revenue			16,968	31,944	48,332	64,130	17,217
	YoY		28.6%	24.8%	22.5%	14.2%	1.5%
	Outsourcing		9,284	17,251	26,456	35,021	8,484
		YoY	63.0%	51.7%	46.3%	30.1%	-8.6%
	Temporary Staffing		2,182	4,224	6,524	8,771	2,467
		YoY	29.8%	28.1%	27.4%	14.8%	13.1%
	EC/TC Support		2,582	5,220	7,399	9,747	2,790
		YoY	1.6%	1.6%	0.9%	-7.1%	8.1%
	Wholesale		2,602	4,621	7,009	9,367	2,985
		YoY	-12.5%	-10.7%	-12.2%	-4.4%	14.7%
	Other		318	628	944	1,224	491
		YoY	7.4%	2.1%	1.1%	-5.2%	54.4%
Operating profit			1,976	3,337	4,773	5,739	1,612
	YoY		38.0%	33.1%	30.9%	19.9%	-18.4%
	Operating profit margin		11.6%	10.4%	9.9%	8.9%	9.4%
	Outsourcing		1,349	2,281	3,346	3,955	715
		YoY	83.3%	75.2%	62.0%	34.6%	-47.0%
		Operating profit margin	14.5%	13.2%	12.6%	11.3%	8.4%
	Temporary Staffing		239	413	716	972	421
		YoY	62.6%	88.6%	108.7%	31.9%	76.2%
		Operating profit margin	11.0%	9.8%	11.0%	11.1%	17.1%
	EC/TC Support		351	699	762	818	250
		YoY	26.3%	-4.2%	4.0%	13.5%	-28.8%
		Operating profit margin	13.6%	13.4%	10.3%	8.4%	9.0%
	Wholesale		120	92	112	137	167
		YoY	-68.0%	-80.6%	-85.1%	-80.2%	39.2%
		Operating profit margin	4.6%	2.0%	1.6%	1.5%	5.6%
	Other		-78	-140	-150	-125	62
		YoY	-	-	-	-	-
		Operating profit margin	-24.5%	-22.3%	-15.9%	-10.2%	12.6%
	Adjustments		-5	-8	-13	-18	-3
Quarterly(JPYmn)			FY08/22				FY08/23
			Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4
Revenue			16,968	14,976	16,388	15,798	17,217
	YoY		28.6%	20.7%	18.2%	-5.3%	1.5%
	Outsourcing		9,284	7,967	9,205	8,565	8,484
		YoY	63.0%	40.3%	37.2%	-3.0%	-8.6%
	Temporary Staffing		2,182	2,042	2,300	2,247	2,467
		YoY	29.8%	26.4%	26.0%	-10.8%	13.1%
	EC/TC Support		2,582	2,638	2,179	2,348	2,790
		YoY	1.6%	1.6%	-0.9%	-25.6%	8.1%
	Wholesale		2,602	2,019	2,388	2,358	2,985
		YoY	-12.5%	-8.2%	-14.9%	29.8%	14.7%
	Other		318	310	316	280	491
		YoY	-112.6%	-2.8%	-0.9%	-21.6%	54.4%
Operating profit			1,976	1,361	1,436	966	1,612
	YoY		38.0%	26.5%	26.3%	-15.4%	-18.4%
	Operating profit margin		11.6%	9.1%	8.8%	6.1%	9.4%
	Outsourcing		1,349	932	1,065	609	715
		YoY	83.3%	64.7%	39.6%	-30.2%	-47.0%
		Operating profit margin	14.5%	11.7%	11.6%	7.1%	8.4%
	Temporary Staffing		239	174	303	256	421
		YoY	62.6%	141.7%	144.4%	-35.0%	76.2%
		Operating profit margin	11.0%	8.5%	13.2%	11.4%	17.1%
	EC/TC Support		351	348	63	56	250
		YoY	26.3%	-23.0%	2,000.0%	-	-28.8%
		Operating profit margin	13.6%	13.2%	2.9%	2.4%	9.0%
	Wholesale		120	-28	20	25	167
		YoY	-68.0%	-	-92.7%	-	39.2%
		Operating profit margin	4.6%	-1.4%	0.8%	1.1%	5.6%
	Other		-78	-62	-10	25	62
		YoY	-	-	-	-	-
		Operating profit margin	-24.5%	-20.0%	-3.2%	8.9%	12.6%
	Adjustments		-5	-3	-5	-5	-3

Note: Figures are after applying the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020).
Note: Figures may differ from company materials due to differences in rounding methods.
Source: Shared Research based on company data.

Q1 FY08/23 results

Q1 FY08/23 results:

Revenue: JPY17.2bn (+1.5% YoY)
Operating profit: JPY1.6bn (-18.4% YoY)
Recurring profit: JPY1.6bn (-17.6% YoY)
Net income attributable to owners of the parent: JPY938mn (-19.6% YoY)

Outsourcing segment

Segment revenue of JPY8.5bn was down 8.6% YoY and segment operating profit of JPY715mn was down 47.0% YoY. Revenue and profit declined in reaction against large-scale orders received in FY08/22 for event management related to the Tokyo 2020 Olympic and Paralympic Games.

Temporary Staffing segment

Segment revenue of JPY2.5bn was up 13.1% YoY and segment operating profit of JPY421mn was up 76.2% YoY. Revenue and profit rose thanks to a surge in demand for tourism services (arrangements/reservations for transportation, lodging, and other services) as a result of a rise in the number of visitors to Japan (mainly from Asia, Europe and the US), as well as services at airports and commercial facilities as inbound travel recovered.

EC/TC Support segment

Segment revenue of JPY2.8bn was up 8.1% YoY and segment operating profit of JPY250mn was down 28.8% YoY. The company provided support for e-commerce and inside sales. As for remote customer service with avatars, the company expanded operations in the hotel and real estate domains by capturing demand for productivity improvement and non-face-to-face customer support amid labor shortages and the pandemic. Revenue rose as a result.

Wholesale segment

Segment revenue of JPY3.0bn was up 14.7% YoY and operating profit of JPY167mn was up 39.2% YoY. Revenue and profit rose thanks to strong sales of trendy products, such as autumn and winter items.

Hito-Communications Holdings 4433