Higher personnel costs and lower earnings following a review of staffing levels in the nursing care business

「特に人的資本投資の位置づけで、保育事業における処遇改善の支払・計上時期を変更しております。行政からの補助金収入の精算は第 1 四半期に実施されます。これをもとに従来は年度を通じて支給・費用計上を行っていましたが、今期は早期に従業員へ還元すべく第 1 四半期に計上しました。この影響により第 1 四半期に費用が一時的に集中しています。」

「In the immediately preceding first-quarter consolidated accounting period, the Company recorded an operating loss owing to the front-loading of new-year enrollment expenses resulting from the seasonal characteristics of the cram-school business and the recognition of temporary costs associated with improving the treatment of childcare workers.」

「Although investment costs were incurred in connection with opening new nursing care locations, profit increased as the company sought to improve operating efficiency and absorbed the burden of these upfront investments.」

「Although investment costs were incurred in connection with opening new nursing care facilities, higher operating efficiency absorbed the burden of these upfront investments, resulting in higher profit.」

「However, operating profit for the fiscal year ended below the previous year's level due to higher personnel costs associated with wage increases and improved compensation, as well as higher costs associated with new openings and facility renovations.」

「In the childcare and nursing care businesses, where personnel shortages are a particular challenge, personnel expenses increased as a result of improving employment conditions to raise retention rates, with the aim of securing human resources and improving engagement.」

「In the nursing care business, the company thoroughly implemented infection-prevention measures and worked to improve occupancy and service utilization rates. The average number of customers during the period reached 104.8% of the level in the same period of the previous year, and both revenue and profit also exceeded the previous year's levels.」

「In the nursing care business, the Company thoroughly implemented measures to prevent infection with the novel coronavirus and worked to improve occupancy and service utilisation rates. The average number of customers during the cumulative second quarter was 105.1% of the year-earlier level, and both revenue and profit were substantially higher than in the previous year.」

「In the childcare business, the number of children enrolled increased steadily, with the average number of children during the period reaching 103.6% of the level in the same period of the previous year. Accordingly, both revenue and profit exceeded the previous year's levels. In the nursing care business, the company thoroughly implemented measures to prevent COVID-19 infections and worked to improve occupancy and service utilization rates. The average number of customers during the period reached 101.4% of the level in the same period of the previous year.」

「However, profit declined due to higher personnel and other costs associated with improving childcare workers' compensation. As a result, the segment's operating results for the first nine months of the current fiscal year were revenue of ¥7,865 million, up 2.6% year on year, and a segment loss of ¥164 million, compared with a segment loss of ¥63 million in the same period of the previous year.」

「However, profit declined due to higher personnel and other costs associated with improving childcare workers' compensation. As a result, the segment's operating results for the first six months of the current fiscal year were revenue of ¥5,192 million, up 1.5% year on year, and a segment loss of ¥146 million, compared with a segment loss of ¥18 million in the same period of the previous year.」

「Profit declined due to higher personnel and other costs associated with improving childcare workers' compensation. As a result, the segment's operating results for the first quarter of the current fiscal year were revenue of ¥2,554 million, up 1.0% year on year, and a segment loss of ¥138 million, compared with a segment loss of ¥53 million in the same period of the previous year.」

「In the nursing care business, the number of residents increased to 106.3% of the year-earlier level, and the Company also worked to improve the service utilisation rate for residents. As a result, segment revenue for the cumulative third quarter was ¥7,663 million, up 7.5% year on year, while the segment loss was ¥63 million, compared with a segment loss of ¥104 million in the same period of the previous year.」

「Segment results for the first quarter were revenue of ¥2,529 million, up 10.7% year on year, and a segment loss of ¥53 million, compared with a segment loss of ¥134 million in the same period of the previous year.」

「In the childcare business, 3 nursery schools were opened in spring 2021, bringing the total number of nursery schools operated by the Group and its consolidated subsidiaries to 91. The number of children enrolled also increased, resulting in higher revenue. Meanwhile, limiting the number of new locations opened in April 2021 significantly reduced the initial costs associated with opening new locations. As a result, segment results for the fiscal year were revenue of ¥9,745 million, up 17.4% year on year, and a segment loss of ¥132 million, compared with a segment loss of ¥264 million in the previous year.」

「Segment results for the first nine months were revenue of ¥7,129 million, up 17.9% year on year, due to an increase in the number of customers. However, higher labor costs, depreciation and amortization, and recruitment expenses associated with nursery-school openings in 2020 resulted in a segment loss of ¥201 million, compared with segment profit of ¥26 million in the same period of the previous year.」

「Segment results for the first quarter were revenue of ¥2,285 million, up 16.9% year on year, due to an increase in the number of customers. However, increases in labor costs, depreciation and amortization, and recruitment expenses associated with openings in 2020 exceeded the increase in revenue, resulting in a segment loss of ¥163 million, an increase in the loss of ¥162 million from the same period of the previous year.」

「As a result, segment results for the fiscal year were revenue of ¥8,299 million, up 25.3% year on year, and a segment loss of ¥361 million, an increase in the loss of ¥314 million from the previous year. The segment loss increased because labor costs rose to secure personnel and improve compensation, and taxes and dues related to subsidies for facilities opened as the number of new nursery schools increased also rose.」

「In the childcare business, we operate 72 nursery schools, and the number of children enrolled is progressing as planned. Costs increased due to higher labor costs, recruitment expenses and capital expenditures related to nursery-school openings in spring 2020. In the caregiving business, revenue and profit increased due to new locations and higher subsidies. Costs increased as internal controls were strengthened and labor costs were reviewed. As a result, segment results for the first nine months were revenue of ¥6,048 million, up 26.9% year on year, and segment profit of ¥26 million, down 75.9% year on year, resulting in higher revenue but lower profit than in the same period of the previous year.」

「In the childcare business, we operate 72 nursery schools, and the number of children enrolled is progressing as planned. Costs increased due to higher labor costs and higher recruitment expenses as hiring was expanded ahead of nursery-school openings in spring 2020.」

「Segment performance for the first quarter of the current consolidated cumulative period benefited from an increase in customer numbers, up 24.5% year on year, or by 533 people. Revenue was ¥1,954 million, up 28.9%, and the segment loss was ¥1 million, compared with a loss of ¥43 million in the year-earlier period.」

「Segment results for the fiscal year were revenue of ¥6,623 million, up 24.5% year on year, and a segment loss of ¥46 million, an increase in the loss of ¥20 million from the previous year. The segment loss increased because labor costs rose to secure personnel for business expansion and to improve compensation.」

「Segment results for the first nine months were revenue of ¥4,767 million, up 123.6% year on year, and segment profit of ¥111 million, equivalent to 89.0% of the prior-year figure. In the caregiving business, costs increased as labor costs rose due to a review of staffing levels and other factors, resulting in higher revenue but lower profit.」

「Segment results for the first six months were revenue of ¥3,119 million, up 124.8% year on year, and segment profit of ¥46 million, equivalent to 89.7% of the prior-year figure. In the caregiving business, costs increased as labor costs rose due to a review of staffing levels and other factors, resulting in higher revenue but lower profit.」

「Segment results for the first quarter were revenue of ¥1,516 million, up 124.2% year on year, and a segment loss of ¥43 million, an increase in the loss of ¥46 million from the same period of the previous year. In the caregiving business, costs increased as labor costs rose due to a review of staffing levels and other factors, resulting in higher revenue but lower profit.」