Summary of Business Results

Net sales of the Group increased 2.4% year on year, to 34,926 million yen, a new record-high quarterly net sales result. This primarily reflected the good start made by the Medical Business due to the effect of price revisions, which exceeded the forecast, as well as the solid performance of both the Elderly Care Business and the Children Business.

Operating profit decreased 4.1% year on year, to 1,643 million yen, mainly due to the improvement in employee treatment made as planned and new IT investments, including the introduction of a next-generation IT platform, partially offset by higher profits from the sales increase.

EBITDA decreased 2.8% year on year to 2,408 million yen.

Ordinary profit increased 2.1% year on year to 1,630 million yen.

Net income increased 34.5% year on year to 1,148 million yen.

Net sales increased 3.0% year on year, to 18,310 million yen, mainly because progress in negotiations for price revisions in existing contracted services exceeded expectations. Operating profit decreased 11.4% year on year, to 1,001 million yen. While progress in price revisions for existing contracted services exceeded expectations, the result reflected the enhancement of measures to improve the treatment with the aim of improving employee satisfaction, which was implemented as planned.

Net sales increased 1.2% year on year, to 13,925 million yen, as the recovery from the COVID-19 pandemic continued from the previous fiscal year. Operating profit grew significantly to 706 million yen, up 33.5% year on year, reflecting an increase in sales and the reduction of various selling, general and administrative expenses.

Net sales increased 5.4% year on year, to 2,678 million yen, mainly due to a rise in unit prices that resulted from the revision of official prices. On the profit and loss front, an operating loss of 66 million yen was posted, mainly attributable to improvements in the treatment of child care workers, increased recruitment costs to strengthen staffing, and higher facility expenses such as utilities.

Current assets as of March 31, 2025 totaled 31,166 million yen, a decrease of 1,118 million yen compared to the end of the previous fiscal year. This was primarily due to a decrease of 1,111 million yen in cash and deposits. Fixed assets totaled 38,930 million yen, a decrease of 3,984 million yen compared to the end of the previous fiscal year. This decrease was primarily due to a decrease of 1,752 million yen in goodwill and a decrease of 1,702 million yen in other investment assets.
As a result, total assets amounted to 70,097 million yen, a decrease of 5,102 million yen compared to the end of the previous fiscal year.

Current liabilities as of March 31, 2025 amounted to 22,362 million yen, a decrease of 2,220 million yen compared to the end of the previous fiscal year. This was primarily due to a decrease of 500 million yen in short-term borrowings and a decrease of 917 million yen in accounts payable. Fixed liabilities totaled 25,050 million yen, a decrease of 5,081 million yen compared to the end of the previous fiscal year. This was primarily due to a decrease of 4,782 million yen in long-term borrowings.
As a result, total liabilities amounted to 47,412 million yen, a decrease of 7,301 million yen compared to the end of the previous fiscal year.

Total equity as of March 31, 2025 amounted to 22,684 million yen, an increase of 2,198 million yen compared to the end of the previous fiscal year. This was primarily due to net income attributable to parent company shareholders of 3,960 million yen and dividend payments from retained earnings of 1,844 million yen.

Net cash flows from operating activities were 5,877 million yen, mainly due to income before income taxes of 6,454 million yen, amortization of goodwill of 1,656 million yen, depreciation of 1,452 million yen, and income taxes paid of 2,106 million yen.

Net cash flows from investing activities totaled 347 million yen. This was primarily attributable to proceeds from the cancellation of money trusts of 1,107 million yen, partially offset by purchases of property, plant and equipment of 415 million yen and intangible assets of 407 million yen.

Net cash used in financing activities was 7,335 million yen, mainly reflecting repayments of long-term borrowings of 4,782 million yen and dividend payments of 1,844 million yen.

Cash and cash equivalents at the end of the current fiscal year amounted to 14,004 million yen, representing a decrease of 1,111 million yen from the end of the previous fiscal year. Despite an increase in income before income taxes, the decrease was primarily due to repayments of long-term borrowings, income taxes paid and dividend payments.