We will continue to provide integrated services “From elderly care to angel care“ in Japan and overseas.
We would like to express our sincere gratitude to our shareholders and investors for your continued support.
Firstly, we would like to report on the performance summary for the fiscal year ending March 2023.
For the fiscal year ending in March 2023, restrictions on activities were lifted in March 2022 with the full lifting of priority measures to prevent the spread of the COVID-19, and economic activities have been gradually resuming, with the number of infected people expanding and decreasing repeatedly since then. The situation is moving toward normalization, with the prospect of a relaxation of measures under the Infectious Disease Control Law. However, against a backdrop of international tensions, soaring global resource prices, and sharp exchange rate fluctuations, prices continued to rise, particularly for food and energy.
In the nursing care industry, in addition to soaring prices of consumables and utilities, it remains extremely difficult to secure adequate human resources in a timely manner, and labor and recruitment costs continue to rise, making the recruitment and retention of nursing care personnel a major challenge.
Under these circumstances, the Group has been working to strengthen its foundation to provide consistent services “From elderly care to angel care,” making investments that will lead to quality improvement in each service, while at the same time promoting cost reductions through both reviews of expenses and operations, and streamlining the head office by promoting DX.
In addition to curbing rising costs associated with soaring prices of consumables, utilities, and other fuels by reviewing purchasing costs and reducing subcontracting costs through in-house production, the Company worked to reduce labor costs by improving office efficiency through the promotion of DX. At the same time, we are working to raise the salary level of employees involved in service provision and improve the working environment to return profits to employees and shareholders, while continuing to invest in growth and expansion. In addition, as one of our sustainable initiatives, we are creating environmentally friendly facilities by using recycled and end-of-life products for wall and floor materials in the construction and renovation of new nursing care facilities.
In the In-home Care Service Business, we opened “Day Service Center Kameido” and “Visiting Bathing Kameido” in Koto-ku, Tokyo in April 2022 to form a strong dominant area, and in August, “Visiting Nursing Clare” and “Visiting Nursing Clare Tachibana” were merged and renamed “Visiting Nursing Kameido”. Furthermore, the “In-home Care Support Kameido” was relocated to the same office to strengthen the dominance of the Joto area in Tokyo.
In the Comprehensive Services for Seniors Business, Angel Care Service made its first foray into the Kyushu region, opening “Angel Care Fukuoka” in Fukuoka City, Fukuoka Prefecture in November 2022.
As a result, the number of existing domestic facilities opened 1 day-care center, 1 home-visit bathing facility, and 1 angel care facility, consolidated 2 home-visit nursing facilities into 1 facility, and closed 1 day-care facility, bringing the total to 107 facilities.
In the overseas business, the number of orders is gradually recovering in the angel care business of Shanghai Fuyuan Care Service Co., Ltd.
As a result of the above, Net sales for the current fiscal year were 9,237 million yen (up 3.0% year-on-year), Operating income was 431 million yen (up 40.8% year-on-year), Ordinary income was 475 million yen (up 45.3% year-on-year), and Net income attributable to shareholders of the parent company was 323 million yen (up 68.5% year-on-year) .
Next, I would like to explain our outlook for the fiscal year ending March 31, 2024.
With the Infectious Disease Control Law’s classification of the COVID-19 as a Class 5 disease, the impact on business operations is expected to gradually diminish. On the other hand, consumers are expected to become even more defensive of their lifestyles in the face of high global prices triggered by the crisis in the Ukraine.
In this business environment, we will continue to promote infection prevention measures in each of our businesses, build a system that customers can use with peace of mind, and continue to promote the expansion of consistent services “From elderly care to angel care” both in Japan and overseas, with the aim of further expanding our business.
In-home Care Service Business, we will open new day care services, in-home care support services, visiting bath services, rental services, and meal delivery centers. In the Comprehensive Services for Seniors Business, we plan to expand the areas where Angel Care offices are opened.
As a result of the above, for the next fiscal year (ending March 31, 2024), the Company forecasts consolidated Net sales of 10,010 million yen (up 8.4% year-on-year), Operating income of 541 million yen (up 25.5%), Ordinary income of 539 million yen (up 13.3%), and Net income attributable to owners of the parent of 341 million yen (up 5.5%).
We would like to ask for the continued understanding and support of our shareholders and investors.
Sincerely,
FUKUHARA Toshiharu
President & CEO,
June 2023
