ENVALITH
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Poppins Corporation

7358・Standard Market・Services

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株式会社ポピンズ logo
Poppins Corporation7358

Business

Poppins Corporation was founded in 1987 with a mission to "support working women with the highest standard of Educare and care services." The company operates across three core segments: nanny and babysitter services (Family Care Business), operation of 325 facilities including licensed nurseries and after-school programs (Educare Business), and education/training and research for childcare professionals (Professional Business). It provides services spanning life stages from infant care to elderly in-home care. Its main customers are dual-income households, corporations, and municipalities. Consolidated net sales for FY2025 (ending December 2025) were ¥34,409 million. The company is listed on the Tokyo Stock Exchange Standard Market.

Business Model

The Educare Business, accounting for approximately 73% of net sales, is a stable-type model whose revenue sources are facility-based benefit payments/subsidies from national and local governments and childcare fees from parents. The Family Care Business, accounting for approximately 24%, provides hourly in-home care services to individuals and corporations, achieving a high profit margin (segment margin of 21.3%) on the back of national and Tokyo Metropolitan Government subsidy programs. The Professional Business secures a high profit margin (27.2%) through contracted training for municipalities and companies. Through synergies among the three businesses, the company diversifies revenue across multiple layers while sharing human capital development costs.

Company Strengths

In August 2021, the company became the first private enterprise to obtain designated training certification for the Children and Families Agency's babysitter discount coupon program, and in September 2022 it received additional certification as designated training for the Tokyo Metropolitan Government's babysitter usage support program. It has built a system in which graduates of its in-house training can immediately begin working as certified babysitters, establishing a supply-side advantage that competitors cannot easily replicate.

In 1999, the company obtained the childcare/care services industry's first ISO9001 certification nationwide. In 2016, it received the Minister of Health, Labour and Welfare Award at the 1st Japan Service Awards. In a FY2024 satisfaction survey of childcare facility users, an average of 98.2% across all facilities responded that they were "satisfied." Its world-class education and training system, established through partnerships with the UK's Norland College and Harvard University and Stanford University in the US, is also a differentiating factor.

As of the end of December 2025, the company operated a total of 325 facilities, including 86 Licensed Nurseries, across the three major metropolitan areas and major regional cities. It offers a full lineup of formats including Licensed Nurseries & Certified Childcare Centers, After-school Clubs & Children's Centers, and Certified Nurseries & On-site Company Nurseries, forming a stable revenue base built on long-term contracted operations with municipalities and corporations. Revenue of ¥25,303 million (up 5.4% year on year) underpins the group's overall earnings.

ENVALITH's Perspective

Operating profit for Q1 FY2026 (fiscal year ending December 2026) came to ¥754 million (down 23.6% year on year), a substantial decline, but the main cause was a total of approximately ¥300 million in "accounting/system-related adjustment factors" in the Educare Business (a ¥120 million negative impact from year-on-year differences in the government-set price revision rate, a ¥110 million negative impact from the earlier-than-planned booking of treatment improvement expenses, and a ¥60 million negative impact from timing differences in the recognition of subsidy revenue); on a substance basis, results are said to be in line with initial expectations for the fiscal year. Meanwhile, the Family Care Business grew robustly, posting segment profit of ¥559 million (up 30.1% year on year), and its share of total profit rose from 31% in the same period last year to 49%.

As a subsequent event, the company is currently examining and reviewing the validity of the consumption tax treatment related to the operation entrustment fees for the corporate-led childcare business handled by a consolidated subsidiary, and has already filed requests for correction of past-period tax returns in February and April 2026. It is currently difficult to reasonably estimate the amount of impact, and the effects on business performance and financial condition are expected to continue from the second quarter onward. In addition, the consolidated subsidiary Wish (childcare staffing dispatch business; net sales of ¥80 million, operating profit of ¥6 million) was sold effective May 1, 2026, which will be a factor reducing the size of the "Others" segment.

Operating profit for FY2025 (ended December 2025) was ¥1,840 million, reaching only about 63% of the 2030 target of ¥3.0 billion or more. The full-year forecast for FY2026 (ending December 2026) is ¥1,920 million (up 4.3% year on year), indicating only a modest improvement is expected. As an external factor, policy tailwinds such as the Tokyo Metropolitan Government's Babysitter Usage Support Program are expected to support growth in the Family Care Business, but the fact that the FY2025 government-set price revision rate (+5.3%) declined significantly from the previous year (+10.7%) constrains the potential for revenue growth in the Educare Business. Whether the effects of strengthened recruitment and reduced staff turnover contribute in earnest from the second quarter onward will be key to profit recovery.

Growth Strategy

Aiming for operating profit of ¥3 billion or more by 2030, driven by policy tailwinds for babysitting services and the full-scale expansion of Silver Care

Leveraging tailwinds from municipal and national subsidy programs such as the Tokyo Metropolitan Government's Babysitter Usage Support Program, the company is pursuing three initiatives: promoting utilization of existing sitters, continued investment in recruitment advertising, and expansion of recruitment locations. Even after the April 2025 price revision and sitter compensation revision, growth continued, achieving a 29.8% year-on-year increase in the first quarter of FY2026 (ending December 2026).

Following the price revision and care staff compensation revision effective June 2025, new customer acquisition and high-value-added services such as housework support and nurse care contributed to growth. A 10.6% year-on-year increase was achieved in the first quarter of FY2026 (ending December 2026). The company aims to capture the full-scale demand expansion expected as the entire baby boomer generation turns 75 or older, through strengthening its own recruitment and service systems.

Through enhanced recruitment and turnover reduction initiatives, effects became evident by the first quarter of FY2026 (ending December 2026), with a 31% year-on-year increase in the number of hires and a 13% decrease in the number of resignations. By resolving temporary staff shortages at Licensed Nurseries & Certified Childcare Centers, Certified Nurseries & On-site Company Nurseries, and other facilities, the company aims to normalize subsidy acquisition and the increase in enrolled children, thereby improving profitability. A contribution to earnings improvement is expected from April onward.

With the aim of optimizing management resources, the company sold its consolidated subsidiary Wish, which operates childcare staff dispatch services, effective May 1, 2026 (classified under the "Others" segment; net sales of ¥80 million and operating profit of ¥6 million). While the impact on consolidated results is considered minor, the divestiture reflects a policy of streamlining non-core businesses to concentrate resources on core segments.

Last updated: July 17, 2026