HRnetGroup H2 net profit up 11.4% to S$32.9 million on lower expenses

Renald Yeo

Published Thu, Feb 23, 2023 · 08:59 PM

RECRUITING and consulting company HRnetGroup : CHZ 0% posted an 11.4 per cent rise in net profit to S$32.9 million in the six months ended Dec 31, 2022, up from S$29.6 million the year before.

This was mainly due to lower employee benefit expenses, which fell 8.3 per cent to S$42.3 million during the second half (H2) of FY2022.

Earnings per share for the period stood at 3.30 Singapore cents per share, up from 2.95 cents per share in the same period of 2021.

Revenue for H2 2022 fell 5.7 per cent to S$297.6 million, down from S$315.4 million previously, after HRnetGroup’s flexible staffing and professional recruitment business segments both registered decreased topline earnings from year-ago periods.

The decrease was due mainly to the scaling back of its Covid-related flexible staffing business in Singapore, and a general slowdown in professional recruitment services in Singapore, Greater China and Japan during the second half, HRnetGroup said in a regulatory filing on Thursday (Feb 23).

The company’s directors have proposed a final dividend of 1.87 Singapore cents per share for H2 2022, down from three cents in H2 2021.

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For the full year ended Dec 31, 2022, net profit rose 3.1 per cent to S$67.5 million, while revenue gained 3.6 per cent to S$611.8 million.

“Pockets of opportunities could exist in sectors that will continue to have robust manpower demand, including outward-oriented sectors of information and communications, financial and insurance services and professional services,” said HRnetGroup.

In China, signs of regulatory and property market tightness might be over, the recruiter added, though “the investment and hiring sentiment might take at least a quarter to revive meaningfully”.

Shares of HRnetGroup closed 1.2 per cent or S$0.01 lower at S$0.82 on Thursday, prior to the earnings release.