Asia Pacific-focused recruitment business Persol Holdings Limited reported a 17.6% year-on-year decrease in its profit to Y5.4 billion ($51.6 million U.S.) for the first quarter ended June 30, 2019. This was mainly due to an increase in the costs of new hiring, according to the company’s financials.
The company’s operating profit fell 12.8% to Y10.057 billion ($95 million U.S.). Sales, however, rose 4.1% to Y235.2 billion ($2.2 billion U.S.) with a 2.7% organic growth of existing business in the Apr.-Jun. period.
Sales in the recruiting segment amounted to Y23.5 billion — a 13.6% year-on-year increase. This was due to an increase in the number of contracts, driven by a higher offers-to-job-seekers ratio and a shift in awareness relating to job-changing. Growth in sales in the full-time employee recruiting ad business made up for the cost escalation related to new hires. The segment’s operating profit rose 11.4% to Y4.7 billion.