SD ENTERTAINMENT,Inc.
4650・Standard Market・Services
Wellness Business
SD Entertainment's core segment integrating fitness, daycare, and elderly/welfare care
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment sales (external customers) | ¥4,267 million | ¥3,624 million | ↑ |
| Segment operating profit | ¥222 million | ¥113 million | ↑ |
| Fitness division sales | ¥868 million | 99.4% year on year | — |
| Daycare/elderly care division sales | ¥3,400 million | 123.6% year on year | ↑ |
| Segment share of group sales | approx. 82.8% | approx. 86.2% | ↓ |
Business Details
Operates fitness clubs (centered on Star Pilates, a machine-based Pilates studio exclusively for women), licensed and company-led daycare centers, and elderly/welfare care facilities centered on the Type B Employment Support Facility "Revive." This is the core business accounting for approximately 82.8% of consolidated group sales, providing value through "health support across all life stages." The daycare/elderly care division was the growth driver, up 123.6% year on year.
Recent Overview
Daycare/elderly care expanded rapidly at 123.6% year on year, and segment operating profit improved roughly twofold year on year
Wellness Business segment sales for FY2026 (ending March 2026) came to ¥4,267 million (117.8% year on year). In daycare, the introduction of "English Time" kept enrollment occupancy rates at a high level, while in elderly care and other services, growth in the number of users and improved utilization rates at the Type B Employment Support Facility "Revive" contributed. Meanwhile, SG&A expenses increased due to costs from opening new locations and increased hiring/training costs, but segment operating profit improved substantially to ¥222 million from ¥113 million in the prior period. As a CSR activity, the company donated "Camellia-kun," a camera designed by nursery staff to prevent children from being left behind, to multiple local governments.
Key Products
Growth Drivers
- Increase in users and utilization rate in the elderly/welfare care division through opening multiple new Type B Employment Support Facilities "Revive" (a key measure in the FY2027 (ending March 2027) forecast)
- Maintaining high enrollment occupancy rates at daycare centers and expansion to other facilities through introduction of distinctive programs such as "English Time"
- Stabilization of lesson quality and acquisition of new members through introduction of Star Pilates' pre-choreographed (standardized) program
- Partial offset of talent development costs through use of human resource development support subsidies (subsidy income)
- Shift in Wellness Business sales composition driven by continued expansion of the daycare/elderly care division
Risks
- Short-term risk of costs running ahead of revenue due to increased personnel development expenses from new store openings and recruitment/training
- Recruitment difficulties and rising labor costs due to chronic labor shortages
- Risk of erosion of existing sales in the fitness division due to store closures and business model conversions
- Risk of stagnating fitness membership growth due to rising cost-consciousness amid inflation
- Risk of changes in government subsidies and regulatory systems in the daycare and elderly care fields
Last updated: June 30, 2026