Deteriorating profitability in facility-based care due to delayed recovery of investment in new facilities
First written in FY2016-Q2. 19 of 34 entries say "Mitigated", first in FY2016-Q3. Latest entry: 2026-05-20.
0 other companies' latest entry also says "Materialised".
- FY2025MitigatedAnnual report
「As a result, revenue for the consolidated fiscal year was ¥25,585 million, up 8.2% year on year, while segment profit was ¥1,651 million, up 342.5%.」
Segment profit in facility-based care rose 342.5% year on year to ¥1,651 million, and the deterioration in profitability after investment in new facilities eased through admission-promotion and cost-containment measures. - FY2025-H1MitigatedAnnual report
「Meanwhile, food and utility costs remained high, and rising raw-material prices and energy costs continued to burden the cost structure. Although we continued efforts to contain costs to secure profitability, expenses increased more than revenue recovered, and improving profitability will still take time. As a result, revenue for the interim consolidated accounting period was ¥12,419 million, up 8.7% year on year, while segment profit was ¥611 million, compared with a segment loss of ¥10 million in the year-earlier period.」
Although the burden of high costs continued, facility-based care improved from a segment loss in the year-earlier period to profit of ¥611 million, easing the deterioration in profitability after investment. - FY2024MitigatedAnnual report
「As a result, revenue for the consolidated fiscal year was ¥23,645 million, up 13.4% year on year, while segment profit was ¥373 million, up 192.2%.」
Segment profit in facility-based care increased, and the deterioration in profitability after investment in new facilities eased from the previous fiscal year as admissions bottomed out and costs were reduced. - FY2024-Q2WorsenedAnnual report
「Meanwhile, food and utility costs remained elevated. Although we worked to reduce costs, the increase in expenses exceeded the increase in revenue, and profitability deteriorated. As a result, revenue for the cumulative second quarter of the current consolidated fiscal year was ¥11,425 million, up 13.7% year on year, while the segment posted a loss of ¥10 million, compared with segment profit of ¥30 million in the year-earlier period.」
Although admissions had bottomed out and revenue was recovering, the increase in expenses exceeded the increase in revenue, and facility-based care moved from profit in the year-earlier period to a loss of ¥10 million, indicating deteriorating profitability. - FY2024-Q1MitigatedAnnual report
「The slowdown in admissions bottomed out and revenue was recovering. However, food and utility costs remained elevated. Although we worked to reduce costs, profit increased only slightly. As a result, revenue for the cumulative first quarter of the current consolidated fiscal year was ¥5,690 million, up 12.9% year on year, while segment profit was ¥40 million, up 0.9%.」
In facility-based care, the slowdown in admissions bottomed out, and revenue and segment profit exceeded the year-earlier levels, partly easing the deterioration in occupancy and profitability after investment. However, profit increased only slightly, and high costs continued. - FY2023-Q3WorsenedAnnual report
「The slowdown in admissions bottomed out, and we worked to reduce costs, including by reviewing the prices of certain services and changing procurement methods for supplies. As a result, revenue for the cumulative third quarter of the current consolidated fiscal year was ¥15,361 million, up 7.1% year on year, while segment profit was ¥124 million, down 79.9%.」
Although the company said the slowdown in admissions had bottomed out, segment profit in facility-based care fell 79.9% year on year to ¥124 million, and profitability continued to deteriorate. - FY2023-Q2WorsenedAnnual report
「The slowdown in admissions that began in the second half of the previous consolidated fiscal year improved only gradually, and progress against the original plan fell short. Although the increase in infection-control expenses, including personnel costs, has come under some control, food costs and utility expenses remained elevated, putting pressure on profit.」
In facility-based care, the slowdown in admissions and shortfall against plan continued, while persistently high food and utility costs also put pressure on profit. - FY2023-Q1WorsenedAnnual report
「Revenue grew as a result of opening new facilities, but the slowdown in admissions that began in the second half of the previous consolidated fiscal year did not improve, and progress against the original plan fell short. Although the increase in infection-control expenses, including personnel costs, has come under some control, higher food costs and utility expenses continued to put pressure on profit.」
In facility-based care, the slowdown in admissions and shortfall against plan continued, while higher food and utility costs also put pressure on profit. - FY2022WorsenedAnnual report
「A slowdown in admissions became apparent after the seventh wave of COVID-19, and progress against the original plan fell significantly short. In addition, because this business is based on group living and care, its relative risk of cluster infections is high. As infection-control expenses, including personnel costs, increased more than in other businesses, they put significant pressure on profit. As a result, segment profit for the consolidated fiscal year was ¥724 million, down 31.5%.」
In facility-based care, segment profit fell 31.5% year on year due to the slowdown in admissions and higher infection-control expenses, increasing constraints on improving occupancy and profitability after investment in new facilities. - FY2022-Q3WorsenedAnnual report
「Priority preventive measures to prevent the spread of disease and other factors constrained sales activities and led to admissions being postponed, while infection-control expenses, including personnel costs, increased. This put pressure on profit in the business. As a result, revenue for the cumulative third quarter of the current consolidated fiscal year was ¥14,341 million, up 2.6% year on year, while segment profit was ¥620 million, down 14.3%.」
In facility-based care, segment profit fell 14.3% year on year due to constraints on sales activities, postponed admissions and higher infection-control expenses, increasing constraints on improving occupancy and profitability after facility investment. - FY2022-Q2WorsenedAnnual report
「Priority preventive measures to prevent the spread of disease and other factors constrained sales activities and led to admissions being postponed, while infection-control expenses, including personnel costs, increased. This put pressure on profit in the business. As a result, revenue for the cumulative second quarter of the current consolidated fiscal year was ¥9,479 million, up 2.4% year on year, while segment profit was ¥394 million, down 18.5%.」
In facility-based care, profit fell 18.5% year on year due to constraints on sales activities, postponed admissions and higher infection-control expenses, increasing constraints on improving occupancy and profitability after facility investment. - FY2022-Q1MitigatedAnnual report
「The state of emergency, priority preventive measures to prevent the spread of disease and other factors constrained sales activities and led to admissions being postponed, while infection-control expenses increased. However, targeted sales activities improved performance in this business. As a result, revenue for the cumulative first quarter of the current consolidated fiscal year was ¥4,769 million, up 1.9% year on year, while segment profit was ¥346 million, up 29.8%.」
Although constraints on sales activities and higher infection-control expenses continued, targeted sales activities lifted segment profit in facility-based care by 29.8% year on year, easing the deterioration in profitability caused by delays in recovering investments. - FY2021MitigatedAnnual report
「Performance in this business is improving as a result of targeted sales activities. As a result, revenue for the consolidated fiscal year was ¥18,741 million, up 2.8% year on year, while segment profit was ¥953 million, up 12.9%.」
Sales activities, including those to promote admissions to new facilities, proved effective, increasing profit in facility-based care and easing the deterioration in profitability caused by delays in recovering investments. - FY2021-Q3WorsenedAnnual report
「The state of emergency, priority preventive measures to prevent the spread of disease and other factors constrained sales activities and led to admissions being postponed, while higher infection-control expenses also pushed down segment profit in this business. As a result, revenue for the cumulative third quarter of the current consolidated fiscal year was ¥13,976 million, up 3.0% year on year, while segment profit was ¥646 million, down 15.0%.」
In facility-based care, segment profit fell 15.0% year on year due to postponed admissions and higher infection-control expenses, increasing constraints on improving occupancy and profitability after facility investment. - FY2020-Q3MitigatedAnnual report
「As a result, revenue for the cumulative third quarter of the current consolidated fiscal year was ¥13,567 million, up 13.6% year on year, while segment profit was ¥751 million, up 69.3%. We will continue to focus on attracting residents and work to improve profitability.」
Focused sales activities aimed at improving facility occupancy proved effective, with segment profit in facility-based care rising 69.3% year on year to ¥751 million. The deterioration in profitability caused by delays in recovering investments in new facilities has eased further. - FY2020-Q2MitigatedAnnual report
「As a result, revenue for the cumulative second quarter of the current consolidated fiscal year was ¥8,977 million, up 15.0% year on year, while segment profit was ¥494 million, up 113.3%.」
Segment profit in facility-based care rose 113.3% year on year to ¥494 million, easing the deterioration in profitability caused by delays in recovering investments in new facilities as measures to improve occupancy progressed. - FY2020-Q1MitigatedAnnual report
「In addition, during the cumulative first quarter of the current consolidated fiscal year, focused sales activities to improve occupancy at facilities opened in the previous fiscal year and the current consolidated fiscal year proved effective, and performance in this business improved. As a result, revenue for the cumulative first quarter of the current consolidated fiscal year was ¥4,479 million, up 14.0% year on year, while segment profit was ¥262 million, up 59.0%.」
Improved occupancy through focused sales activities proved effective, with segment profit in facility-based care rising 59.0% year on year to ¥262 million. The deterioration in profitability caused by delays in recovering investments in new facilities has eased. - FY2019MitigatedAnnual report
「As a result, revenue for the consolidated fiscal year was ¥17,882 million, up 15.0% year on year, while segment profit was ¥646 million, compared with segment profit of ¥40 million in the year-earlier period. We will continue to focus on attracting residents and work to improve profitability.」
Focused sales activities aimed at improving facility occupancy proved effective, and segment profit in facility-based care improved from ¥40 million in the previous fiscal year to ¥646 million. Meanwhile, impairment losses were also recorded for locations with declining profitability. - FY2019-Q3MitigatedAnnual report
「As a result, revenue for the cumulative third quarter of the current consolidated fiscal year was ¥13,177 million, up 16.5% year on year, while segment profit was ¥449 million, compared with a segment loss of ¥123 million in the year-earlier period. We will continue to focus on attracting residents and work to improve profitability.」
Segment profit in facility-based care improved from a loss of ¥123 million in the year-earlier period to profit of ¥449 million, further easing the deterioration in profitability caused by delays in recovering investments in new facilities. - FY2019-Q2MitigatedAnnual report
「In addition, during the cumulative second quarter of the current consolidated fiscal year, our efforts to improve investment efficiency by shifting to measures expected to have a greater effect proved effective, and performance in this business improved. As a result, revenue for the cumulative second quarter of the current consolidated fiscal year was ¥8,625 million, up 18.2% year on year, while segment profit was ¥218 million, compared with a segment loss of ¥194 million in the year-earlier period.」
The shift to measures aimed at improving investment efficiency proved effective, and facility-based care improved from a segment loss of ¥194 million in the year-earlier period to profit of ¥218 million. - FY2019-Q1MitigatedAnnual report
「During the previous consolidated fiscal year, proactive sales activities aimed at filling the facilities quickly proved effective, and performance in this business segment is improving. As a result, revenue for the cumulative first quarter of the current consolidated fiscal year was ¥4,329 million, up 19.9% year on year, while segment profit was ¥141 million, compared with a segment loss of ¥30 million in the year-earlier period.」
Sales activities aimed at filling the facilities quickly proved effective, and facility-based care improved from a loss of ¥30 million in the year-earlier period to profit of ¥141 million. The deterioration in profitability caused by delays in recovering investments in new facilities has eased. - FY2018WorsenedAnnual report
「These measures produced some results and revenue expanded steadily, but their implementation generated costs exceeding expectations. Together with the recording of initial investments in these facilities and personnel-related costs, this put downward pressure on profit.」
While measures to bring new facilities into the black quickly and promote admissions produced some results, costs exceeding expectations, initial investments and personnel-related costs pushed down profit. Annual segment profit in facility-based care fell to ¥40 million. - FY2018-Q3WorsenedAnnual report
「During the cumulative third quarter of the current consolidated fiscal year, we implemented aggressive measures to promote admissions with the aim of bringing these facilities into the black quickly. These measures produced some results and revenue continued to expand steadily, but their implementation generated costs exceeding expectations. Together with the recording of initial investments in these facilities and personnel-related costs, this put downward pressure on profit.」
Although the company pursued an early return to profitability and promoted admissions, costs exceeding expectations due to the implementation of these measures, initial facility investments and personnel-related costs put downward pressure on profit. Facility-based care moved from profit of ¥262 million in the year-earlier period to a loss of ¥123 million. - FY2018-Q2WorsenedAnnual report
「As a result, revenue for the cumulative second quarter of the current consolidated fiscal year was ¥7,296 million, up 17.4% year on year, while the segment posted a loss of ¥194 million, compared with segment profit of ¥101 million in the year-earlier period.」
Although sales activities were conducted to fill the facilities, facility-based care moved from profit of ¥101 million in the year-earlier period to a loss of ¥194 million, and the deterioration in profitability widened. - FY2018-Q1WorsenedAnnual report
「We conducted proactive sales activities to fill as quickly as possible the facilities opened during the cumulative first quarter of the current consolidated fiscal year and the second half of the previous consolidated fiscal year. However, we were unable to recover investments including the facilities’ equipment, consumables and personnel inputs, which pushed down segment profit. As a result, revenue for the cumulative first quarter of the current consolidated fiscal year was ¥3,610 million, up 18.3% year on year, while the segment posted a loss of ¥30 million, compared with segment profit of ¥30 million in the year-earlier period.」
Although sales activities were conducted to fill the facilities, the facility-based care business was unable to recover its investments and moved from profit of ¥30 million in the year-earlier period to a loss of ¥30 million. - FY2017MitigatedAnnual report
「Proactive sales activities to fill the facilities opened during the current consolidated fiscal year proved effective, and performance in this business is improving. As a result, revenue for the consolidated fiscal year was ¥13,142 million, up 19.5% year on year, while segment profit was ¥332 million, up 333.6%.」
Filling the facilities through proactive sales activities proved effective, with segment profit in facility-based care rising 333.6% year on year to ¥332 million. Profitability is improving from the deterioration caused by delays in recovering facility investments. - FY2017-Q3MitigatedAnnual report
「Proactive sales activities to fill the facilities opened during the cumulative third quarter of the current consolidated fiscal year and the second half of the previous consolidated fiscal year proved effective, and performance in this business is improving. As a result, revenue for the cumulative third quarter of the current consolidated fiscal year was ¥9,621 million, up 19.8% year on year, while segment profit was ¥262 million, up 577.1%. We will continue to focus on attracting residents and work to improve profitability.」
Sales activities aimed at filling the facilities proved effective, with segment profit in facility-based care rising 577.1% year on year to ¥262 million. Profitability is therefore improving from the deterioration caused by delays in recovering facility investments. - FY2017-Q2MitigatedAnnual report
「Proactive sales activities to fill the facilities opened during the cumulative second quarter of the current consolidated fiscal year and the second half of the previous consolidated fiscal year proved effective, and performance in this business is improving. As a result, revenue for the cumulative second quarter of the current consolidated fiscal year was ¥6,214 million, up 19.2% year on year, while segment profit was ¥101 million, compared with a segment loss of ¥1 million in the year-earlier period.」
Sales activities aimed at filling the facilities proved effective, and facility-based care improved from a segment loss in the year-earlier period to profit of ¥101 million. - FY2017-Q1RestatedAnnual report
「We were unable to recover investments including the facilities’ equipment, consumables and personnel inputs, and therefore did not achieve a significant improvement in segment profit. As a result, revenue for the cumulative first quarter of the current consolidated fiscal year was ¥3,051 million, up 18.3% year on year, while segment profit was ¥30 million, up 130.5%.」
Although segment profit increased year on year, the company had not yet recovered its facility investments and had not achieved a significant improvement in profit. - FY2016MitigatedAnnual report
「Although proactive sales activities produced some improvement in the vacancy rate, we were unable to recover investments including the facilities’ fixed assets, consumables and personnel inputs, which pushed down segment profit. As a result, revenue for the consolidated fiscal year was ¥10,993 million, up 13.6% year on year, while segment profit was ¥76 million, down 83.6%.」
Although the vacancy rate improved to some extent, the failure to recover facility investments and the resulting pressure on profit continued. - FY2016-Q3MitigatedAnnual report
「We were unable to recover investments including the facilities’ fixed assets, consumables and personnel inputs, which pushed down segment profit. As a result, revenue for the cumulative third quarter of the current consolidated fiscal year was ¥8,034 million, up 12.2% year on year, while segment profit was ¥38 million, down 90.3% year on year.」
Although the failure to recover investments and the resulting pressure on profit continued, the segment moved from a loss in the previous period to profit of ¥38 million, indicating partial improvement in profitability. - FY2016-Q2First statedAnnual report
「The investments in facility fixed assets, consumables and personnel had not yet been recovered, which reduced segment profit. As a result, revenue for the six-month period ended September 30 was ¥5,214 million, up 10.9% year on year, while the segment recorded a loss of ¥1 million, compared with segment profit of ¥203 million in the same period of the previous year.」
Explains that the failure to recover investments associated with facility openings resulted in a segment loss in facility-based care.