Human Holdings Co (2415) investor relations material

Executive summary

• Revenue increased 2.6% year-over-year to ¥26,295 million, driven by growth in education, nursing care, and steady demand in human resources segments.

• Operating profit declined 5.9% year-over-year to ¥607 million, mainly due to higher personnel investments in the staffing/human resources segment.

• Net profit attributable to shareholders rose 31.2% year-over-year to ¥534 million, supported by increased subsidies in the nursing care segment.

• Ordinary profit increased 13.9% to ¥890 million, aided by non-operating income from nursing care subsidies.

• The company continues to focus on high value-added business models, AI-driven efficiency, and M&A aligned with its growth strategy.

Financial highlights

• Revenue: ¥26,295 million, up ¥668 million (2.6%) year-over-year.

• Operating profit: ¥607 million, down ¥38 million (5.9%) year-over-year.

• Ordinary profit: ¥890 million, up ¥108 million (13.9%) year-over-year.

• Net profit attributable to shareholders: ¥534 million, up ¥126 million (31.2%) year-over-year.

• EPS for the quarter was ¥51.46, up from ¥39.23 in the prior year.

Segment performance

• Staffing/Human resources: Revenue up 0.5% to ¥15,454 million; operating profit down 14.6% to ¥781 million due to higher personnel investment and lower placement revenue.

• Education: Revenue up 5.4% to ¥6,869 million; operating loss improved to ¥31 million, driven by strong adult and international education and improved gross margin in child education.

• Nursing care: Revenue up 7.8% to ¥3,420 million; operating profit down 59.6% to ¥21 million due to higher personnel costs from wage improvements.

• Other: Revenue down 0.9% to ¥548 million; operating profit up to ¥60 million, with sports business declining and nail business stable.

• Other businesses posted an operating loss of ¥60 million.