DUSKIN CO., LTD.

Business Details

Centered on the Clean Service Business, which primarily rents environmental hygiene products and cleaning equipment such as mats and mops, the group also operates the Care Service Business, including the professional cleaning service "Service Master", housekeeping service "Merry Maids", and pest control service "Terminix". The group is based on a franchise model, supplying rental products and collecting royalties from franchisees. It is composed of a diversified group of lifestyle services, including the Rent-All Business, Health Rent Business, Uniform Service Business, and Rescue Service Business.

Recent Overview

Despite higher sales, a sharp rise in the cost of the "Mop Cleaner with Case" led to a slight decline in operating profit

In FY2026 (ending March 2026), the Home Sales Group posted sales of ¥111,248 million (up 2.6% year on year), driven by higher sales in the Care Service Business and Others. Meanwhile, operating profit declined slightly to ¥5,639 million (down 1.4% year on year), mainly due to a rise in the cost ratio caused by the lump-sum recognition of costs at initial shipment, as the "Mop Cleaner with Case", launched in February 2025, shipped in excess of plan. Orders for venue cleaning and hygiene product supply at the Osaka-Kansai Expo also contributed to results. Notably, the impairment loss increased sharply from ¥138 million in the prior period to ¥1,077 million. For FY2027 (ending March 2027), the company forecasts sales of ¥115,800 million (up 4.1%) and operating profit of ¥6,800 million (up 20.6%), anticipating a substantial recovery in profit.

Key Products

Growth Drivers

• Expansion of the Care Service Business: increased royalty income driven by rising demand for air conditioner cleaning and daily cleaning of business facilities
• Accelerated franchise expansion of the Rescue Service Business (key rescue dispatch): targeting over 100 locations nationwide by FY2028 (ending March 2028)
• Acquisition of new customers and "evolution" into adjacent businesses through focus on the house maintenance field
• Increased event orders in the Rent-All Business and creation of social value in the disaster prevention/mitigation field
• Continued sales growth in the Health Rent, Life Care, uniform-related, and cosmetics-related businesses
• Environmental response and cost structure improvement through EV vehicle introduction and installation of charging equipment
• Improved operational efficiency and construction of a highly reproducible service delivery system through core system rebuilding

Risks

• Profit pressure from lump-sum recognition of costs at initial shipment of new products (a structural risk in the Clean Service Business's earnings model)
• Continued decline in household and business sales in the core Clean Service Business
• Risk of rising cost ratio due to soaring raw material prices and rising labor costs
• Impact on sales and royalty income from deteriorating business conditions among franchisees
• Risk of shrinking household rental market due to declining birthrate, aging population, and population decline
• Risk of expanding impairment losses on fixed assets (¥1,077 million recorded in FY2026, ending March 2026)
• Impact on consumer demand from economic downside risk due to geopolitical risks such as US tariff policy
• Disruption to on-site business operations due to chronic labor shortages