HRnetGroup H1 profit down 18.3% to S$28.3 million amid economic slowdown
Ry-Anne Lim
RECRUITMENT company HRnetGroup on Thursday (Aug 10) reported a net profit of S$28.3 million for the first half ended Jun 30, 2023, down 18.3 per cent from S$34.6 million in the corresponding period last year.
H1 revenue saw a 6.2 per cent year-on-year decline to S$294.8 million, from S$314.2 million a year ago. This came after the group’s professional recruitment and flexible staffing segments both registered decreased topline earnings from the year-ago period.
The professional recruitment segment plunged 34.3 per cent year on year to S$34.3 million, from S$52.2 million previously.
“Strong economic headwinds (impacted) permanent hiring first, resulting in weak hiring sentiment across most sectors and levels, in line with the wider recruitment industry across the world,” said HRnetGroup in a bourse filing. This was especially so for its business in mainland China, which took the brunt of the faltering economic recovery, it added.
Placement volume also fell by 21 per cent in H1.
Meanwhile, revenue from its flexible staffing segment slipped a marginal 0.5 per cent to S$258.6 million, from S$259.8 million a year ago – mainly because “flexible staffing is more resilient in challenging conditions as demand is better suited to a flexible solution for clients”, it said.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Earnings per share for the period stood at S$0.0286 per share, down from S$0.0345 per share in the same period in 2022.
The group’s directors declared an interim dividend of S$0.0187 per share, representing a payout ratio of 62 per cent. It will be paid on or around Sep 11, 2023.
Despite macroeconomic uncertainties and fears of recession, HRnetGroup remains confident that the markets in Asia will eventually recover.
“We will continue to invest in people, startups and ventures, taking a long-term view and gearing up the capacity for the economic recovery when it comes,” it said.
Shares of HRnetGroup closed at S$0.73, down 0.7 per cent or S$0.005, before the announcement.
Copyright SPH Media. All rights reserved.
