CHARM CARE CORPORATION
6062・Prime Market・Services
Nursing Care Business
Core segment of the Group centered on the operation of paid nursing homes
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment revenue (cumulative Q3, FY2026 ending June 2026) | ¥32,349 million | ¥28,766 million (same period prior year) | ↑ |
| Segment revenue year-on-year change | up 12.5% | down 1.5% year-on-year (same period prior year) | ↑ |
| Segment profit (cumulative Q3, FY2026 ending June 2026) | ¥4,532 million | ¥3,386 million (same period prior year) | ↑ |
| Segment profit year-on-year change | up 33.8% | down 0.7% year-on-year (same period prior year) | ↑ |
| Average occupancy rate at existing facilities during the period (open 2+ years) | 94.5% | 94.4% (same period prior year) | ↑ |
| Number of facilities operated | 114 facilities | – | ↑ |
| Number of rooms (consolidated) | 7,686 rooms | – | ↑ |
| Goodwill balance (end of March 2026) | ¥2,225 million | ¥2,389 million (end of June 2025) | ↓ |
Business Details
Develops and operates nursing-care paid nursing homes and residential-type paid nursing homes. Centered on urban areas of the Tokyo metropolitan area and the Kinki region, the Company operates a diverse range of brands, from the upper-middle to affluent-targeted high-price brands "Charm Premier Grand" and "Charm Premier" to the standard-price "Charm Suite" and "Charm." The Company provides nursing care services to individuals certified as requiring support or care under the Long-Term Care Insurance Act, with nursing care compensation income as its main revenue source. Like Co., Ltd. and CM Care Co., Ltd. are included as consolidated subsidiaries.
Recent Overview
Nursing Care Business continued its strong performance, with revenue up 12.5% and segment profit up 33.8%, marking substantial profit growth
During the cumulative third quarter of the consolidated fiscal year ending June 2026 (July 2025 to March 2026), the Nursing Care Business achieved revenue of ¥32,349 million (up 12.5% year-on-year) and segment profit of ¥4,532 million (up 33.8% year-on-year). In addition to the winter seasonal impact being milder than in the same period of the prior year, productivity improvements have progressed steadily. In the current consolidated fiscal year, the Company has phased in relaxed staffing ratios (3:0.9) at 10 facilities, with one additional facility having newly received approval at the time of reporting. New openings and acquisitions in the Nursing Care Business during the current consolidated fiscal year totaled 9 facilities with 542 rooms (7 facilities in the Tokyo metropolitan area, 2 in the Kinki region). The occupancy rate at former Care 21 facilities improved from the initial 20% range to 61.1% (69.8% as of end-March 2026). Both revenue and profit are progressing at a pace exceeding plan.
Key Products
Growth Drivers
- Stable revenue base supported by maintaining a high occupancy rate (94.5%) at existing facilities (open 2+ years)
- Expansion of room count through new openings and M&A (9 facilities and 542 rooms added in the current consolidated fiscal year)
- Profit contribution from occupancy rate improvement and operational efficiency at M&A-acquired facilities (former Care 21: 69.8%; former Biken Techno: 62.5%)
- Productivity improvement through phased introduction of relaxed staffing ratios (3:0.9) (filed for 10 facilities in the current consolidated fiscal year)
- Improved staff recruitment and retention through the optional 3-day weekend system (selected by approximately 60% of nursing care staff), base salary increases for two consecutive periods, and partial conversion of bonuses into monthly salary
- Capturing demand through concentrated store openings in urban areas of the Tokyo metropolitan area and the Kinki region
- Improvement of nursing care skills and services through the shift to a "field-oriented" education and training system centered on on-the-job training (OJT) at facilities
Risks
- Direct impact on revenue from nursing care compensation reform (dependence on compensation under the Long-Term Care Insurance Act)
- Chronic labor shortage and rising recruitment costs, exemplified by an effective job openings-to-applicants ratio of 3.63 for nursing care workers (March 2026, national average, regular employment)
- Risk of delayed occupancy rate improvement at M&A-acquired facilities (former Care 21 facilities are still in the process of improvement)
- Increased costs for new openings due to rising construction costs and labor shortages in the construction industry
- Intensifying competition from new entrants from other industries
- Increased operating costs due to inflation and wage increases (continuous base salary increases based on the No. 1 Treatment policy)
Last updated: December 22, 2025