Increase in Nursing Care Operating Costs Due to Higher Fuel and Food Costs, with the Impact Mitigated by Subsidies
First written in FY2023-Q2. 8 of 12 entries say "Worsened", first in FY2025-H1. Latest entry: FY2026.
Meiho Holdings 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.
1 other company's latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「On the profit side, results were affected by higher depreciation expenses for the residential fee-based home for older people “アルトのお家 旦島,” increased personnel expenses following the expansion of social insurance coverage from October 2024, and higher food, fuel and utility costs. As a result, sales were ¥923.156 million, up 5.2% year on year, and segment profit was ¥74.633 million, down 24.5%.」
In addition to higher food, fuel and utility costs, increased depreciation expenses for the new facility and higher personnel expenses resulting from the expanded application of social insurance combined to reduce segment profit in the nursing care business by 24.5%. - FY2026-H1WorsenedAnnual report
「Meanwhile, segment profit was ¥44.413 million, down 30.3% year on year, due to higher depreciation expenses associated with the residential fee-based nursing home Alto no Ouchi Danjima, as well as higher personnel and recruitment expenses following the expansion of social insurance coverage from October 2024.」
In addition to the previous increases in food, fuel and utility costs, depreciation expenses for new facilities and higher labor and recruitment costs resulting from the expanded application of social insurance combined to reduce profit in the long-term care business. - FY2025WorsenedAnnual report
「Meanwhile, segment profit was ¥98.861 million, down 22.3% year on year, due to costs associated with the residential fee-based nursing home Alto no Ouchi Danjima, higher personnel expenses following the expansion of social insurance coverage from October 2024, and soaring food, fuel and utility costs.」
The combined impact of expenses for new facilities, higher labor costs resulting from the expanded application of social insurance, and soaring food, fuel and utility costs resulted in a 22.3% year-on-year decline in profit in the long-term care business. - FY2025-H1WorsenedAnnual report
「Segment profit was ¥63.739 million, down 1.4% year on year, due to costs associated with the residential fee-based nursing home Alto no Ouchi Danjima, higher personnel expenses following the expansion of social insurance coverage from October 2024, and the impact of soaring food, fuel and utility costs.」
In addition to soaring food, fuel and utility costs, higher labor costs resulting from expenses for new facilities and the expanded application of social insurance occurred, resulting in a 1.4% year-on-year decline in segment profit in the long-term care business. - FY2024-Q2MitigatedAnnual report
「In the long-term care business, revenue was ¥384.330 million, up 13.1% year on year, as facility closures and users refraining from services due to COVID-19 subsided and the number of users recovered. Segment profit was ¥64.671 million, up 63.2%, as the company reduced expenses and improved operational efficiency while food and utility costs remained elevated.」
Amid persistently high food and utility costs, the company reduced expenses and improved operational efficiency, resulting in a 63.2% year-on-year increase in segment profit in the long-term care business. This indicates the response to higher costs and the resulting improvement in profitability. - FY2023MitigatedAnnual report
「In the long-term care business, operating costs increased due to higher fuel, food and other costs, but the impact was limited owing to support from various subsidies.」
The company reported that operating costs increased due to higher fuel and food costs, but the impact was limited owing to subsidies and other measures. - FY2023-Q3MaterialisedAnnual report
「Segment profit was ¥64.137 million, down 7.9% year on year, due partly to a higher cost ratio resulting from lower utilization rates at some facilities through the second quarter of the consolidated fiscal year and higher fuel and food costs.」
The higher cost ratio caused by rising fuel and food costs and lower utilization rates at some facilities actually occurred, resulting in a 7.9% year-on-year decline in segment profit in the long-term care business. - FY2023-Q2First statedAnnual report
「In the long-term care business, operating costs increased due to higher fuel, food and other costs, but the impact is expected to be limited owing to support from various subsidies.」
The company described for the first time the increase in operating costs and the cost ratio in the long-term care business caused by higher fuel and food costs, and expects subsidies to limit the ultimate impact on earnings.