Message to Shareholders and Investors
We would like to express our sincere gratitude for your continued support.
Financial Results for the Fiscal Year Ended March 2025
During this consolidated fiscal year, Japan’s economy remained uncertain, and the external environment surrounding all industries underwent dramatic change. In addition to rising prices driven by inflation and unstable global conditions, Japan faced mounting challenges such as labor shortages and higher wages due to a declining workforce. At the same time, fees under the national nursing care insurance system have remained rigid, making it increasingly difficult for care providers like us to absorb these rising costs.
Amid such circumstances, our Group focused on three key priorities in advance of these major changes in the external environment.
1. Strengthening Financial Foundation through Cost Management
This effort has gone beyond reducing procurement costs to include in-house execution of tasks previously outsourced, as well as shifting from lease contracts to cash purchases. These measures have minimized cash outflows and contributed to building a more robust financial base.
2. A Precise Strategy for New Openings and Relocations, and Focused Approach to Business Portfolio Optimization
For our business to grow, opening new facilities is essential. However, inflation has sharply raised tenant rents, energy prices, and material costs. In addition, demographic shifts are accelerating across regions. For this reason, our Group does not rely solely on past data but instead visits prospective sites to carefully assess current local needs before making decisions on new openings. In parallel, we have continued to renovate existing facilities and relocate to more favorable sites.
In the fiscal year ended March 2025, we opened three new facilities: two in the In-home Care Service Business and one in the Comprehensive Services for Seniors Business.
At the same time, our Group had operated in Shanghai, China since 2015. After carefully considering local business conditions and future prospects, we made the decision to dissolve and liquidate our overseas subsidiary, Shanghai Fuyuan Care Service Co., Ltd.
3. Securing Talent as the Key to Our Business
Under the theme of “Protecting Employees” — essentially our work-style reform — we implemented three initiatives: (1) continuous base wage increases, (2) improvements to the working environment, and (3) enhancements to our recruitment methods. These efforts have already shown visible results over the past year. We have seen an increase in applicants, resulting in higher numbers of new hires, and a clear improvement in employee retention. Both new-graduate and mid-career applications rose significantly compared with previous years, while retention improved and the number of resignations declined substantially.
As a result of these initiatives, in the fiscal year ended March 2025 we recorded net sales of 9,862 million yen (up 2.3% year on year), operating profit of 520 million yen (up 0.5%), ordinary profit of 581 million yen (up 4.4%), and profit attributable to owners of parent of 374 million yen (down 1.0%). We also recorded a special loss related to the liquidation of our overseas subsidiary.
Outlook for Fiscal Year Ending March 2026
As noted earlier, the external environment has been changing rapidly in recent years. Continuing along our previous strategy would likely create a widening gap between assumptions and reality. Therefore, we have decided to discontinue our previously announced “Long-Term Strategy and Investment Vision (2023–2033)” released in May 2022.
For new openings in fiscal 2026, we will continue to conduct on-site assessments and make agile decisions, balancing regional needs against opening costs. We will also actively pursue renovations of existing facilities and relocations to better sites, following the same approach as in fiscal 2025.
In one of our core businesses, the Angel Care Service, we opened new facilities in April 2025 in Kochi City (Kochi Prefecture) and in May 2025 in Yokosuka City (Kanagawa Prefecture). Demand for Angel Care Service has been rising nationwide, both in terms of cases handled and sales. Expansion into new regions has been smooth, and our Group intends to further strengthen its capabilities to accelerate business development.
Based on these efforts, our forecast for the fiscal year ending March 2026 is net sales of 10,370 million yen (up 5.2% year on year), operating profit of 609 million yen (up 17.1%), ordinary profit of 624 million yen (up 7.5%), and profit attributable to owners of parent of 411 million yen (up 9.9%).
We would like to ask for your continued understanding and support as we move forward.
Sincerely,
FUKUHARA Toshiharu
President & CEO,
June 2025
