NipponCareSupplyCo.,Ltd.

Business Details

The Group operates in the single segment of the Elderly Life Support Business (Single Segment). Its core business is Welfare Equipment Rental Wholesale and Welfare Equipment Sales Wholesale (welfare equipment services), positioned between welfare equipment manufacturers and designated home-care service providers. In addition, the Group operates Elderly Life Support Services (Meals & EC), including meal services for care providers, EC site operations, and provision of cloud services. Its major shareholders include Mitsubishi Corporation and ALSOK (Sohgo Security Services), and it operated 99 business locations as of the end of the fiscal year under review.

Recent Overview

Welfare Equipment Rental Wholesale performed steadily, achieving two consecutive years of increased revenue and profit across all profit lines

In FY2026 (ending March 2026), net sales were ¥34,929 million (up 9.1% year on year) and operating profit was ¥3,094 million (up 25.8% year on year), representing a substantial increase in profit. Although depreciation expense increased due to active investment in rental assets, along with higher personnel costs and rising logistics costs, the effect of increased revenue outweighed these factors. In March 2026, the company opened the Itabashi and Odawara stations, expanding to 99 locations by the end of the period. For FY2027 (ending March 2027), the company forecasts net sales of ¥37,500 million (up 7.4% year on year) and operating profit of ¥3,450 million (up 11.5% year on year). The annual dividend was increased to ¥72 (from ¥70 in the previous fiscal year), with a forecast of ¥74 for the next fiscal year.

Key Products

Growth Drivers

• Continued expansion of demand for welfare equipment rental accompanying growth in the population of the elderly aged 75 and over
• Expansion of trade areas through new openings and enlargement of business locations, mainly in urban areas (99 locations at the end of the fiscal year under review)
• Enhancement of the product lineup for wholesale sales to nursing care facilities and sales expansion leveraging the ALSOK network
• Increased order volume for Elderly Life Support Services (Balance Bento and EC site) and improved supply capacity through the addition of frozen storage warehouses
• Improvement in the business environment for care providers due to the special interim revision of long-term care fees for fiscal 2026 (a 2.03% increase)
• Deepening of autonomous decentralized management and promotion of human capital investment based on the long-term vision "Kea-sapu Vision 2040"

Risks

• Increased depreciation expense and financial burden associated with substantial investment in rental assets (capital expenditure of ¥6,459 million in the fiscal year under review)
• Rising recruitment and personnel costs due to intensifying competition for talent acquisition (salaries of ¥3,937 million in the fiscal year under review, up 9.5% year on year)
• Risk of institutional changes ahead of the next revision to the long-term care insurance system (fiscal 2027), including changes in the scope of benefits and fee levels
• Upward pressure on cost of sales and SG&A expenses due to rising prices and logistics costs
• Risk of increased business costs due to deterioration in the macro environment, including unstable international conditions and sharp rises in crude oil prices
• Impact on service provision systems due to worsening shortages of nursing care personnel amid the declining birthrate and aging population