Saint-Care (2374) Q1 2025 earnings summary

Executive summary

• Revenue increased 3.0% year-over-year to ¥13,808 million for the first quarter, but operating profit declined 22.2% and net profit attributable to shareholders fell 21.4% due to higher personnel costs and new business openings.

• The business environment remains challenging with rising demand for services amid a shrinking workforce and regulatory changes, including a 2024 triple revision of care, medical, and disability welfare fees.

• The company responded to regulatory changes and prioritized solutions for high medical-need clients, while also advancing its "Community No.1 Strategy" and expanding through M&A and new openings.

Financial highlights

• Operating profit for Q1 was ¥610 million, down 22.2% year-over-year; ordinary profit was ¥643 million, down 18.7%.

• Net profit attributable to shareholders was ¥381 million, a 21.4% decrease year-over-year.

• Comprehensive income for the quarter was ¥387 million, down 20.8% year-over-year.

• EPS for Q1 was ¥15.43, compared to ¥19.64 in the prior year.

• Total assets at quarter-end were ¥29,918 million, down from ¥30,987 million at the previous year-end.

Outlook and guidance

• Full-year revenue is forecast at ¥57,120 million (up 5.7% year-over-year), with operating profit of ¥3,300 million (up 8.8%) and net profit of ¥2,135 million (up 6.5%).

• No change to previously announced full-year guidance; any future revisions will be disclosed as needed.

• Full-year EPS is projected at ¥86.68.