Pressure on profitability in other businesses from persistently high food and personnel costs and new investments
First written in FY2018-Q1. 12 of 16 entries say "Worsened", first in FY2020-Q3. Latest entry: 2026-09-11.
Care Twentyone moved to the "Worse" side of this theme in 2023, 5 years after the typical company in this theme (2018).
The whole theme swung hardest in 2020: 6 of 21 companies on the "Worse" side.
4 other companies' latest entry also says "Worsened".
- FY2026-H1WorsenedAnnual report
「In the childcare business, the company focused on strengthening revenue and profit at facilities opened in recent periods. As a result, revenue for the six-month consolidated period was ¥5,419 million, down 4.7% year on year, while segment profit was ¥234 million, down 32.9%.」
In Other Businesses, revenue fell 4.7% year on year and segment profit fell 32.9%, with pressure on profitability evident even as the existing disability services, childcare, and other businesses expanded. - FY2025WorsenedAnnual report
「As a result, revenue for the fiscal year was ¥11,328 million, up 8.8% year on year, while segment profit was ¥758 million, down 9.3%.」
In Other Businesses, revenue increased 8.8%, while segment profit fell 9.3%. Fixed costs for new sites and the burden of food, water and utility costs, and other expenses are putting pressure on profitability. - FY2025-H1WorsenedAnnual report
「The company focused on growing revenue and profit, mainly in the disability services and childcare businesses opened in the previous consolidated fiscal year. As a result, revenue for the six-month consolidated period was ¥5,686 million, up 13.6% year on year, while segment profit was ¥349 million, down 30.6%.」
Revenue in Other Businesses increased 13.6%, while segment profit fell 30.6%. Pressure on profitability has emerged even as the existing disability services and childcare businesses expand. - FY2024WorsenedAnnual report
「The company focused on growing revenue and profit, mainly in the childcare and dining businesses. However, various costs, including food, consumables, and water and utility costs, remained high, and upfront investment costs were incurred in connection with the opening of Reels Garden Itakano. As a result, the increase in expenses exceeded the increase in revenue, causing profitability to deteriorate.」
In addition to persistently high costs, upfront investment costs were incurred for Reels Garden Itakano, and segment profit in Other Businesses fell 11.0% year on year. - FY2024-Q2WorsenedAnnual report
「The company focused on growing revenue and profit, mainly in the childcare and dining businesses. However, various costs, including food, consumables, and water and utility costs, remained high, and upfront investment costs were incurred in connection with the opening of Reels Garden Itakano. As a result, the increase in expenses exceeded the increase in revenue, causing profitability to deteriorate.」
In addition to persistently high costs, upfront investment costs were incurred in connection with the opening of Reels Garden Itakano, and in Other Businesses the increase in expenses exceeded the increase in revenue, causing profitability to deteriorate. - FY2024-Q1WorsenedAnnual report
「The company focused on growing revenue and profit, mainly in the childcare business opened in the previous consolidated fiscal year. However, as various costs, including food, consumables, and water and utility costs, remained high, the increase in expenses exceeded the increase in revenue, resulting in lower profitability. As a result, revenue for the three-month cumulative period of the current consolidated first quarter was ¥2,413 million, up 9.1% year on year, while segment profit was ¥48 million, down 7.8%.」
In Other Businesses, revenue increased, but the increase in expenses exceeded the increase in revenue because food, consumables, and water and utility costs remained high, resulting in a 7.8% year-on-year decline in segment profit. - FY2023-Q3MitigatedAnnual report
「In the education and personnel services businesses, revenue growth slowed as the so-called “qualification boom” during the COVID-19 pandemic came to an end. However, agile operation of classrooms and courses prevented a sharp deterioration and enabled the company to generate stable earnings. As a result, revenue for the nine-month cumulative period of the current consolidated third quarter was ¥6,780 million, up 8.1% year on year, while segment profit was ¥796 million, up 7.8%.」
Although growth slowed as the qualification boom ended, agile operation of classrooms and courses prevented a sharp deterioration, and segment profit in Other Businesses increased 7.8% year on year. - FY2023-Q2WorsenedAnnual report
「The company focused on growing revenue and profit, mainly in the childcare business opened in the previous consolidated fiscal year. However, profitability deteriorated in the education business and personnel services business as the so-called “qualification boom” during the COVID-19 pandemic came to an end and food, consumables, and water and utility costs rose.」
Although segment profit for Other Businesses increased overall, profitability deteriorated in the education and personnel services businesses as the qualification boom ended and various costs increased. - FY2023-Q1WorsenedAnnual report
「Although the increase in infection-control costs, including personnel expenses, has been brought under control to some extent, food costs and water and utility costs continued to rise, putting pressure on profit.」
While the increase in infection-control costs has been brought under control to some extent, food costs and water and utility costs continued to rise in facility-based elderly care, putting pressure on profit. - FY2022WorsenedAnnual report
「As the protracted situation in Ukraine and the rapid depreciation of the yen drove resource and energy prices, which had already been rising, even higher, water and utility costs gradually increased following food and consumables, making it impossible to contain the overall increase in costs across the company.」
Rising resource and energy, food, consumables, and water and utility costs emerged as company-wide cost increases, and segment profit in Other Businesses fell 3.3% year on year. - FY2022-Q2MitigatedAnnual report
「As a result, revenue for the six-month cumulative period of the current consolidated second quarter was ¥4,118 million, up 8.4% year on year, while segment profit was ¥572 million, up 20.0%.」
In Other Businesses, there were cost pressures associated with new businesses and new site openings, but revenue increased 8.4% year on year and segment profit increased 20.0%, easing the pressure on profitability. - FY2021MitigatedAnnual report
「As a result, revenue for the fiscal year was ¥7,989 million, up 18.2% year on year, while segment profit was ¥796 million, up 58.8%.」
While fixed costs and personnel-related costs associated with new openings and upfront investments continued, revenue and segment profit in Other Businesses increased substantially, easing the pressure on profitability. - FY2020-Q3WorsenedAnnual report
「However, in some businesses, including the education business for care personnel, the company was forced to suspend or scale back sales activities during the state of emergency, while costs related to upfront investments were incurred in new businesses. As a result, revenue for the nine-month cumulative period of the current consolidated third quarter was ¥4,842 million, up 15.9% year on year, while segment profit was ¥356 million, down 12.0%.」
In Other Businesses, sales activities were suspended or scaled back and upfront investment costs were incurred for new businesses. Revenue increased, while segment profit fell 12.0% year on year. - FY2018-Q1First statedAnnual report
「In addition to expensing in full the goodwill of newly consolidated subsidiary 株式会社ナースセントラル when it arose, segment profit was reduced because food costs and personnel-related costs remained high at 株式会社美味しい料理 and the business was affected by investments in new locations.」
States that full expensing of 株式会社ナースセントラル’s goodwill, persistently high food and personnel-related costs and investment in new locations reduced segment profit in Other Businesses.