CSS Holdings,Ltd.

Business Details

The core group segment operated by Central Service System Co., Ltd. Serving hotels, restaurants, theme parks, banquet halls and similar customers as its primary clientele, the segment provides dishwashing (management) operations, pot washing operations, cooking assistance operations, waste collection and transport operations, kitchen cleaning operations, and more on a nationwide basis. Sales are mainly generated from hotel clients. In the interim period of FY2026 (ending March 2026, six months ended March 2026 [note: fiscal year ends September]), sales were ¥4,967 million, accounting for approximately 47.8% of consolidated sales, making this the largest segment in the group.

Recent Overview

Opened 4 new business locations in the interim period, achieving higher sales and profit; 2 or more hospital projects also expected to open within the current fiscal year

In the interim period of FY2026 (ending March 2026) (October 2025 to March 2026), the company opened 4 new business locations, achieving higher sales and profit with sales of ¥4,967 million (up 5.2% year on year) and operating profit of ¥386 million (up 7.1% year on year). Openings of large hotels, mainly foreign-affiliated brands, have continued, and the company is conducting active sales activities to secure new contracts. For hospital projects, an area of focus since the previous fiscal year, 2 or more openings are expected within the current fiscal year. At the time of contract renewals with existing clients, the company has been passing on cost increases such as labor costs through price adjustments, contributing to sales and profit. On the internal management side, in addition to SaaS, the company is considering introducing AI agents, focusing on restructuring shift scheduling and labor management processes and improving operational efficiency.

Key Products

Growth Drivers

• Expansion of new order opportunities driven by the continued increase in new hotel openings (particularly foreign-affiliated brands)
• Expansion into new customer areas beyond traditional hotels and restaurants, such as hospitals, shrines, and event venues
• Profit improvement through price pass-through of labor cost increases at the time of contract renewals with existing clients
• Strengthening earning power through restructuring of shift scheduling and labor management processes and improved operational efficiency via introduction of AI agents in addition to SaaS
• Maintaining net growth in part-time and temporary staff through recruitment and development of foreign candidate managers and diverse workforce utilization
• Strengthening new business acquisition capability through direct oversight of the sales organization by the president

Risks

• Securing part-time and temporary staff amid a chronic labor shortage environment
• Risk of profit pressure from continued increases in labor and personnel costs
• Risk of deterioration in inbound tourism to Japan due to flight reductions and higher airfares from airlines amid rising fuel prices, and resulting deterioration in business conditions at major hotel clients
• Risk of intensified competition and price competition due to increased entry by foreign-affiliated hotels
• Risk of increased occupational health and safety management costs due to an increasing number of elderly and foreign workers