Improving the Profitability of Overseas Subsidiaries Acquired Through M&A
First written in FY2016. 9 of 32 entries say "Advanced", first in FY2017. Latest entry: FY2026.
The whole theme swung hardest in 2020: 3 of 12 companies on the "Worse" side.
3 other companies' latest entry also says "Other".
- FY2026Signs of recovery in some regions and sectorsAnnual report
「Meanwhile, demand for temporary workers in Europe, the United States and Australia has declined against a backdrop of uncertain economic conditions, but signs of a recovery in revenue have begun to emerge in certain regions and occupational categories in the second half of the fiscal year.」
While the slowdown in overseas staffing demand continued, signs of a recovery in revenue emerged in certain regions and occupational categories in the second half of the fiscal year ending March 2026. - FY2026-H1Continued slowdown in overseas staffing demandAnnual report
「In Europe, the United States and Australia, revenue declined 3.9% as demand for temporary staffing continued to slow against a backdrop of an uncertain economic outlook.」
In the overseas staffing business, demand continued to slow, and revenue in Europe, the United States and Australia for the six months ended the interim period declined 8.0% year on year. Meanwhile, the EBITDA+S margin for the overall staffing business was 6.6% for the interim period. - FY2025Continued decline in overseas staffing marginAnnual report
「In Europe, the United States and Australia, revenue declined 2.4% from the previous fiscal year, or 6.9% excluding the ¥40.3 billion positive impact of foreign exchange. Demand for temporary staffing slowed due to the uncertain outlook for the economic environment, resulting in lower revenue. The adjusted EBITDA margin for the fiscal year was 5.8%, down from 6.0% in the previous fiscal year, mainly due to higher recruitment costs for temporary staff and marketing expenses for corporate clients.」
In the overseas staffing business, revenue continued to decline due to slowing demand, and the adjusted EBITDA margin also fell from 6.0% to 5.8%. - FY2025-H1Continued slowdown in overseas staffing demandAnnual report
「In Europe, the United States and Australia, revenue declined 0.9% as demand for temporary staffing continued to slow against a backdrop of an uncertain economic outlook. Excluding the ¥9.6 billion positive impact of foreign exchange, revenue for the second quarter declined 5.2%.」
While the policy of improving the profitability of acquired overseas subsidiaries continued, demand for temporary staffing continued to slow in Europe, the United States and Australia. Second-quarter revenue declined 0.9% year on year, or 5.2% excluding foreign exchange effects. - FY2024Continued decline in overseas staffing marginAnnual report
「In Europe, the United States and Australia, revenue declined 2.1% from the previous fiscal year, or 9.2% excluding the ¥64.8 billion positive impact of foreign exchange. Demand for temporary staffing slowed due to the uncertain outlook for the economic environment. The adjusted EBITDA margin for the fiscal year was 6.0%, down from 6.5% in the previous fiscal year, while adjusted EBITDA declined 4.2% to ¥97.9 billion.」
In the overseas staffing business, revenue declined due to slowing demand, and the adjusted EBITDA margin also fell from 6.5% to 6.0%. - FY2024-Q3Continued decline in overseas staffing revenueAnnual report
「In Europe, the United States and Australia, revenue declined 0.4% as demand for temporary staffing continued to slow against a backdrop of an uncertain economic outlook. Excluding the ¥15.6 billion positive impact of foreign exchange, revenue for the third quarter declined 6.9%.」
While the policy of improving the profitability of acquired overseas subsidiaries continued, third-quarter revenue in Europe, the United States and Australia declined 0.4% year on year, or 6.9% excluding foreign exchange effects. The adjusted EBITDA margin for the overall staffing business rose 0.3 percentage points to 7.5%, but was 6.8% for the nine months ended the third quarter. - FY2024-Q2Continued decline in overseas staffing revenue and marginAnnual report
「In Europe, the United States and Australia, revenue declined 5.1% as demand for temporary staffing continued to slow against a backdrop of an uncertain economic outlook. Excluding the ¥15.7 billion positive impact of foreign exchange, revenue for the second quarter declined 11.8%.」
While the policy of improving the profitability of acquired overseas subsidiaries continued, revenue in Europe, the United States and Australia declined 5.1% year on year, or 11.8% excluding foreign exchange effects. The adjusted EBITDA margin for the overall staffing business also fell 0.7 percentage points year on year to 6.2%. - FY2024-Q1Continued decline in overseas staffing revenue and marginAnnual report
「In Europe, the United States and Australia, revenue declined 2.4% as demand for temporary staffing slowed against a backdrop of an uncertain economic outlook. Excluding the ¥11.0 billion positive impact of foreign exchange, revenue for the first quarter declined 7.4%.」
In the overseas staffing business, revenue declined 2.4% year on year due to slowing demand, while the adjusted EBITDA margin for the overall staffing business fell to 6.7% from 7.1% in the same period of the previous year. - FY2023Continued decline in overseas staffing marginAnnual report
「In Europe, the United States and Australia, the adjusted EBITDA margin was 5.2%.」
In the overseas staffing business, revenue and profit continued to grow, while the adjusted EBITDA margin in Europe, the United States and Australia fell to 5.2%. This was down from the 6.8% margin for the overseas staffing business as a whole in the previous fiscal year, indicating that profitability improvement remains an ongoing challenge. - FY2023-Q3Continued decline in overseas staffing marginAnnual report
「In Europe, the United States and Australia, staffing demand continued to increase despite a contraction in COVID-19-related demand in some parts of Europe that had existed in the fiscal year ended March 2022, resulting in a 19.4% increase in revenue. Revenue for the third quarter excluding the ¥31.4 billion positive impact of foreign exchange increased 3.8%. The adjusted EBITDA margin declined 1.0 percentage point to 5.8%, as the rate of increase in costs associated with inflation and an increase in employees exceeded the rate of revenue growth.」
The overseas staffing business reported higher revenue, but the adjusted EBITDA margin declined 1.0 percentage point year on year to 5.8% due to higher costs associated with inflation and an increase in employees. - FY2023-Q2Continued decline in overseas staffing marginAnnual report
「In Europe, the United States and Australia, staffing demand continued to increase despite a contraction in COVID-19-related demand in some parts of Europe that had existed in the fiscal year ended March 2022, resulting in a 23.3% increase in revenue. Revenue for the second quarter excluding the ¥29.5 billion positive impact of foreign exchange increased 7.8%. Due to inflation and higher personnel expenses associated with an increase in employees, the adjusted EBITDA margin was 5.5%, and adjusted EBITDA increased 14.5%.」
The overseas staffing business reported higher revenue and profit, but the adjusted EBITDA margin declined to 5.5% from 6.0% in the same period a year earlier due to higher personnel expenses associated with inflation and an increase in employees. - FY2023-Q1Decline in overseas staffing marginAnnual report
「Due to higher personnel expenses resulting from wage increases for temporary staff and an increase in employees, the adjusted EBITDA margin declined 0.6 percentage points to 4.8%, while adjusted EBITDA increased 4.1%.」
In the overseas staffing business, revenue increased and adjusted EBITDA also rose 4.1% year on year, but the adjusted EBITDA margin declined to 4.8% as personnel expenses increased due to wage increases and an increase in employees. - FY2022AdvancedAnnual report
「As a result of the increase in revenue, the adjusted EBITDA margin was 6.8%, and adjusted EBITDA increased 28.9%.」
In the overseas staffing business, against a backdrop of recovering demand in Europe, the United States and Australia, the adjusted EBITDA margin was 6.8% and adjusted EBITDA increased 28.9% year on year, continuing the improvement in profitability. - FY2022-Q3AdvancedAnnual report
「In Europe, the United States and Australia, demand for staffing increased as businesses continued to reopen and expand. Revenue increased 16.2%, driven particularly by continued demand for personnel in logistics related to European e-commerce and increased demand in healthcare following the resurgence of COVID-19 infections. As a result of the increase in revenue, the adjusted EBITDA margin was 6.8%, and adjusted EBITDA increased 28.9%.」
In the overseas staffing business, revenue in Europe, the United States and Australia increased 16.2% year on year in the third quarter, the adjusted EBITDA margin was 6.8%, and adjusted EBITDA increased 28.9%, indicating progress in improving profitability. - FY2022-Q2AdvancedAnnual report
「In Europe, the United States and Australia, business reopening and expansion continued, and logistics related to European e-commerce remained particularly strong, resulting in an 18.9% year-on-year increase in revenue. As a result of the increase in revenue, the adjusted EBITDA margin was 6.0%, and adjusted EBITDA increased 30.6%.」
In the overseas staffing business, revenue in Europe, the United States and Australia increased 18.9% year on year, the adjusted EBITDA margin was 6.0%, and adjusted EBITDA increased 30.6%. - FY2022-Q1AdvancedAnnual report
「Demand continued in Europe, the United States and Australia, particularly in logistics related to European e-commerce and healthcare amid the COVID-19 pandemic, resulting in a 46.5% year-on-year increase in revenue (Note 2). As a result of the substantial increase in revenue, the adjusted EBITDA margin was 5.4%, and adjusted EBITDA increased 256.4% year on year.」
Regarding the profitability improvement of overseas acquired subsidiaries, the adjusted EBITDA margin in Europe, the United States and Australia was 5.4%, up year on year. Adjusted EBITDA also increased 256.4% year on year. - FY2021Decline in overseas staffing marginAnnual report
「Adjusted EBITDA in the overseas staffing business declined 19.6% from the previous consolidated fiscal year to ¥27.4 billion, and the adjusted EBITDA margin was 4.4%.」
While the company continued its policy of improving profitability in the overseas staffing business, the adjusted EBITDA margin was 4.4% in the fiscal year ended March 2021, down from 5.0% in the previous consolidated fiscal year. - FY2021-Q3Quarterly improvement in overseas staffing marginAnnual report
「Adjusted EBITDA in the overseas staffing business increased 2.5% year on year to ¥10.6 billion, and the adjusted EBITDA margin was 6.1%. Amid the spread of an uncertain economic environment globally, the company focused on maintaining the adjusted EBITDA margin by responding appropriately in each market while quickly monitoring developments in labor markets and government measures that differed by country, and by continuing its longstanding cost management initiatives. Cumulative adjusted EBITDA for the first 3 quarters was ¥22.1 billion, down 21.2% year on year, and the adjusted EBITDA margin was 4.8%.」
The overseas staffing margin was 6.1% in the third quarter, exceeding 6.0% in the same period a year earlier. Meanwhile, the cumulative margin for the first 3 quarters was 4.8%, below 5.4% in the same period a year earlier. Market-specific responses and cost management continued. - FY2021-Q2Decline in overseas staffing marginAnnual report
「Adjusted EBITDA in the overseas staffing business declined 10.6% year on year to ¥8.6 billion, and the adjusted EBITDA margin was 5.4%. Amid the spread of an uncertain economic environment globally, the company focused on maintaining the adjusted EBITDA margin by responding appropriately in each market while quickly monitoring developments in labor markets and government measures that differed by country, and by continuing its longstanding cost management initiatives. Cumulative adjusted EBITDA for the first 2 quarters was ¥11.5 billion, down 35.2% year on year, and the adjusted EBITDA margin was 4.0%.」
While the company continued market-specific responses and cost management, the adjusted EBITDA margin in the overseas staffing business was 4.0% for the cumulative first 2 quarters, down from 5.0% in the same period a year earlier. - FY2021-Q1Decline in overseas staffing marginAnnual report
「Adjusted EBITDA in the overseas staffing business declined 64.8% year on year to ¥2.8 billion, and the adjusted EBITDA margin was 2.2%. Amid the spread of an uncertain economic environment globally, the company focused on maintaining the adjusted EBITDA margin by responding appropriately in each market while quickly monitoring developments in labor markets and government measures that differed by country, and by continuing its longstanding cost management initiatives.」
While the company continued market-specific responses and cost management to improve the profitability of overseas subsidiaries, the adjusted EBITDA margin in the overseas staffing business declined from 4.6% in the same period a year earlier to 2.2%. - FY2020RestatedAnnual report
「In this business segment, including the overseas staffing business, the company will continue focusing on controlling the segment profit margin through productivity improvements achieved by strengthening its unit management model amid an uncertain economic environment.」
Regarding the overseas staffing business, the company reaffirmed its policy of continuing to strengthen its unit management model, improve productivity and control the segment profit margin. - FY2020-Q3RestatedAnnual report
「In the overseas staffing business, profit declined, but the segment profit margin was 6.0%, broadly unchanged year on year (6.1% in the third quarter of the previous fiscal year). This was mainly due to strengthened cost management.」
In the overseas staffing business, the company strengthened cost management and maintained the third-quarter profit margin broadly in line with the same period a year earlier despite lower profit. - FY2020-Q2AdvancedAnnual report
「In the overseas staffing business, profit declined, but the segment profit margin was 5.5%, unchanged year on year (5.5% in the second quarter of the previous fiscal year). This was mainly due to strengthened cost management.」
Regarding the profitability improvement of overseas acquired subsidiaries, the company strengthened cost management and maintained the overseas staffing business segment profit margin at 5.5% in the second quarter, broadly in line with the same period a year earlier. - FY2020-Q1RestatedAnnual report
「The segment profit margin was 6.3% in the first quarter, down from 7.3% in the first quarter of the previous fiscal year. This was mainly because the negative impact of lower profit resulting from decreased revenue was greater than the productivity improvement from strengthening the unit management model.」
Although the company continued improving productivity by strengthening its unit management model, the overseas staffing business was significantly affected by lower profit resulting from decreased revenue, and the segment profit margin declined from 5.5% in the same period a year earlier to 4.6%. - FY2019AdvancedAnnual report
「In the overseas staffing business, the company will continue working to continuously improve the adjusted EBITDA margin while introducing business management expertise to overseas subsidiaries.」
Regarding the profitability improvement of overseas acquired subsidiaries, the company indicated a policy of managing the adjusted EBITDA margin, in addition to introducing business management expertise. - FY2019-Q3AdvancedAnnual report
「Segment profit (segment EBITDA) in the third quarter was ¥25.1 billion, up 13.4% year on year. This was mainly attributable to higher profit accompanying increased revenue in the domestic staffing business and higher profit in the overseas staffing business, where the company focused on improving productivity.」
Regarding the profitability improvement of overseas acquired subsidiaries, the company stated that profit in the overseas staffing business increased as a result of its focus on improving productivity. - FY2019-Q2AdvancedAnnual report
「In the second quarter, the company continued to operate its businesses with an emphasis on profitability based on its unit management model and invested mainly in Europe to improve the efficiency of administrative costs. As a result, revenue for the cumulative second quarter period was ¥386.7 billion, down 1.6% from the cumulative total for the same period a year earlier.」
To improve the profitability of overseas acquired subsidiaries, the company continued its unit management model and invested in Europe to improve administrative cost efficiency. Revenue declined 1.6% from the cumulative total for the same period a year earlier, including the impact of the adoption of IFRS 15 and other factors. - FY2018-Q3RestatedAnnual report
「The positive impact of foreign exchange on revenue was ¥15.6 billion, and revenue excluding this impact declined 1.2%. This was mainly attributable to a decline in transactions with existing clients amid challenging business conditions in certain US industries, in addition to the company operating its businesses with an emphasis on profitability based on its unit management model.」
In the overseas staffing business, the company continued to operate with an emphasis on profitability based on its unit management model. Revenue excluding foreign exchange declined 1.2% in the third quarter, while cumulative revenue for the first 3 quarters excluding acquisition and foreign exchange effects declined 3.3%. - FY2018-Q2RestatedAnnual report
「Revenue for the six months ended in the second quarter, excluding the impact of newly contributing USG People B.V. and foreign exchange, declined 4.4% from the cumulative total for the same period a year earlier, due to factors similar to those affecting the second quarter. This was mainly attributable to a decline in transactions with existing clients amid challenging business conditions in certain US industries, in addition to the company operating its businesses with an emphasis on profitability based on its unit management model.」
In the overseas staffing business, the company continued to operate with an emphasis on profitability based on its unit management model. Revenue excluding the effects of USG People B.V. and foreign exchange declined 4.4% from the cumulative total for the same period a year earlier. - FY2018-Q1RestatedAnnual report
「Revenue excluding the impact of newly contributing USG People B.V. and foreign exchange decreased 4.5%, as transactions with existing clients declined amid challenging business conditions in certain US industries, in addition to the company operating its businesses with an emphasis on profitability based on its unit management model.」
In the overseas staffing business, the company continued to operate with a focus on profitability based on its unit management model, while revenue excluding acquisition and foreign exchange effects declined 4.5%. - FY2017AdvancedAnnual report
「In the staffing business, the company will continue working to improve its EBITDA margin while introducing business management expertise to acquired overseas subsidiaries.」
The company outlined specific measures to introduce business management expertise at overseas subsidiaries after their acquisition and continuously improve the EBITDA margin. - FY2016First statedAnnual report
「In the overseas business, which continues to expand through M&A, the company will continue working to improve the profitability of acquired subsidiaries.」
In the overseas business expanded through M&A, improving profitability after acquisitions remains a key issue.