Higher Costs from Improved Compensation and Appropriate Staffing for Care Facility Staff, and Surging Utility Costs
First written in FY2023-Q2. 7 of 12 entries say "Worsened", first in FY2023-Q3. Latest entry: FY2027-H1.
Medical Ikkou Group moved to the "Worse" side of this theme in 2025, 1 year before the typical company in this theme (2026).
The whole theme swung hardest in 2026: 5 of 6 companies on the "Worse" side.
2 other companies' latest entry also says "Restated".
- FY2027-H1RestatedAnnual report
「Although labor costs and personnel expenses have increased, the company has recorded wage increase subsidies as non-operating income.」
In the healthcare business, labor costs and personnel expenses continue to increase, while wage increase subsidies have been recorded as non-operating income. Operating income increased 212.6% year on year. - 2026-07-10WorsenedEarnings
「In terms of profit, operating income declined due to increases in labour and personnel expenses, although wage-increase subsidies were recognised as non-operating income.」
Higher labour and personnel expenses were reflected in a decline in operating income in the healthcare business. - FY2026WorsenedAnnual report
「In addition to continued increases in personnel expenses, operating income declined due to the recognition of M&A expenses and start-up costs for newly established facilities.」
In addition to higher personnel costs, M&A expenses and upfront costs for newly opened facilities were incurred, resulting in a 31.7% year-on-year decline in operating profit in the healthcare business. - FY2026-H1WorsenedAnnual report
「On the profit front, in addition to recording ¥42 million in various costs related to M&A, upfront costs were incurred in connection with the opening of new facilities, and labor costs also increased. As a result, operating profit fell substantially below the same period of the previous year. Revenue was ¥4,381 million, up 10.6% year on year, and operating profit was ¥14 million, down 88.9% year on year.」
M&A-related costs of ¥42 million, upfront costs for opening new facilities and higher labor costs combined to reduce operating profit in the healthcare business by 88.9% year on year. Pressure from care facility operating costs is reflected in the results. - FY2024-Q3RestatedAnnual report
「Although challenges remain, including persistently high utility costs essential to facility operations and the response to rising prices」
The company continues to identify persistently high utility costs in care facility operations and the response to rising prices as ongoing challenges. - FY2024-Q2RestatedAnnual report
「Although challenges remain, including persistently high utility costs essential to facility operations and the response to rising prices」
The company continues to identify persistently high utility costs in care facility operations and the response to rising prices as ongoing challenges. - FY2024-Q1RestatedAnnual report
「Although challenges remain, including persistently high utility costs essential to facility operations」
The company continues to recognize persistently high utility costs in care facility operations as a challenge, but operating profit in the healthcare business increased 165.2% year on year. - FY2023WorsenedAnnual report
「In addition to higher labor costs associated with improving the treatment of facility employees, utility costs essential to facility operations have remained high, and these costs increased substantially from the previous fiscal year. Under these conditions, the group has worked to provide care services that allow everyone using its facilities to spend their time safely and comfortably. As a result, revenue was ¥7,671 million, down 1.8% year on year, and the company reported an operating loss of ¥28 million, compared with operating profit of ¥218 million in the same period of the previous year.」
Continued increases in labor costs associated with improving the treatment of care facility employees and persistently high utility costs resulted in an operating loss of ¥28 million in the healthcare business. Rising costs are increasingly reflected in deteriorating performance. - FY2023-Q3WorsenedAnnual report
「In addition to higher labor costs associated with improving the treatment of facility employees, utility costs essential to facility operations have remained high, causing costs to increase. Under these conditions, the group has worked to provide care services that allow everyone using its facilities to spend their time safely and comfortably. As a result, revenue was ¥5,813 million, down 1.5% year on year, and operating profit was ¥35 million, down 84.3% year on year.」
Continued increases in labor costs associated with improving the treatment of facility employees and persistently high utility costs have resulted in an 84.3% year-on-year decline in operating profit in the healthcare business. - FY2023-Q2First statedAnnual report
「Meanwhile, the company thoroughly implemented measures against infectious diseases by improving the treatment and ensuring the appropriate staffing of facility employees. Labor costs increased, while electricity, gas and other utility costs essential to facility operations also soared, resulting in higher costs.」
The company states for the first time that labor costs increased as a result of improved treatment and appropriate staffing at care facilities, while soaring electricity, gas and other utility costs also led to higher costs.