Impact of Newly Opened Childcare Centers on Operating Income/Loss
First written in FY2020. 3 of 5 entries say "Restated". Latest entry: FY2025.
2 other companies' latest entry also says "Restated".
- FY2025RestatedAnnual report
「New nursery schools initially tend to have fewer children aged 3 to 5 and others than their capacity, gradually approaching full capacity as the children advance in age. As a result, profitability is low for several years from the first year of operation, and an increase in the number of new nursery school openings can cause operating income and loss to deteriorate.」
The document continues to recognize the impact on operating income and loss of low utilization during the initial period after opening, depreciation and other factors. - FY2023RestatedAnnual report
「New nursery schools initially tend to have fewer children aged 3 to 5 and others than their capacity, gradually approaching full capacity as the children advance in age. As a result, profitability is low for several years from the first year of operation, and an increase in the number of new nursery school openings can cause operating income and loss to deteriorate.」
The document continues to recognize the impact on operating income and loss of low utilization during the initial period after opening, opening preparation costs and depreciation. - FY2022MaterialisedAnnual report
「The operating margin for the current fiscal year was 0.2%, down 4.5 percentage points year on year, but the company will continue working to improve this metric compared with the previous fiscal year.」
The increase in personnel and facility operating costs associated with 11 new openings was reflected in higher cost of sales and a lower operating profit margin, and the impact of new openings on operating income and loss materialized. - FY2021RestatedAnnual report
「Because the Group plans to pursue aggressive new openings, the impact of new openings on operating performance is expected to remain significant for the time being. However, the impact is expected to ease gradually as the ratio of new facilities to operating facilities declines.」
The document continues to recognize the impact on operating income and loss of low utilization during the initial period after opening, opening preparation costs and depreciation. - FY2020First statedAnnual report
「When a new nursery school or other facility is opened, the number of children aged 3 to 5 and others initially tends to be below capacity and gradually approaches full capacity as the children advance in age. As a result, profitability is low for several years from the first year of operation, and an increase in the number of new nursery school openings can cause operating income and loss to deteriorate.」
The document states that aggressive new openings may worsen operating income and loss for the time being, but that the impact will ease as the ratio of new facilities to total facilities declines.