Risk of higher utility and food costs in the nursing care business due to inflation
First written in FY2024-Q2. 2 of 4 entries say "Restated". Latest entry: FY2026.
Kudo moved to the "Worse" side of this theme in 2026, 1 year after the typical company in this theme (2025).
The whole theme swung hardest in 2026: 5 of 6 companies on the "Worse" side.
1 other company's latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「In the long-term care industry, demand for care services is expanding as the population ages. At the same time, in addition to shortages of long-term care personnel, rising labor costs and cost increases caused by inflation, responding to the need for greater operational efficiency has become a major management challenge.」
Regarding cost risks in the long-term care business, the company explicitly identifies rising labor costs and the need to improve operational efficiency, in addition to the previously identified utility and food costs, as major challenges. - FY2025RestatedAnnual report
「In the care services industry, demand for care services is expanding each year as the elderly population grows, but securing care personnel has not kept pace and chronic labor shortages persist. In particular, few younger people seek employment in the industry and the employee turnover rate is high, making improvements in treatment and the work environment important issues.」
In addition to the shortage of long-term care personnel, the company continues to identify expanding demand for care services, the small number of young people seeking employment and the high turnover rate as factors underlying the need to improve compensation and the working environment. - FY2024RestatedAnnual report
「In the long-term care industry, demand for care services is expected to continue rising as the elderly population grows, increasing the industry's social role. We recognize addressing labor shortages accompanying the expansion of demand for long-term care services as an important challenge. We will work to improve the workplace environment by strengthening graduate recruitment and improving employee compensation, while providing the distinctive features of the residential care homes we operate: reliable care quality, detailed rehabilitation, a secure medical care system and a carefully designed living environment.」
The company continues to recognize that, in addition to addressing the shortage of long-term care personnel, addressing rising costs in the long-term care business is a challenge. - FY2024-Q2First statedAnnual report
「Rising costs, including utility and food costs due to inflation, have also become a challenge for long-term care operators.」
In the long-term care business, the company has for the first time separately identified rising costs, including utility and food costs resulting from inflation, as an operational challenge.