Sunwels (9229) investor relations material

Executive summary

• Net sales increased 6.2% year-over-year to ¥28,136 million, but profitability declined due to lower health insurance revenue, higher costs from new facility openings, and structural reforms following compliance issues.

• Opened 13 new PD House facilities in FY March 2026, reaching a total of 56 specialized care sites for Parkinson's disease patients, incurring initial costs that impacted profitability.

• Occupancy rates for existing facilities stabilized at 87% by March 2026, while new facilities improved to 45%.

• Extraordinary income of ¥1,000 million from a CEO donation improved net loss compared to forecasts.

Financial highlights

• FY March 2026 sales: ¥28,136 million (+6.2% YoY); EBITDA: ¥654 million (down 74.0% YoY); net loss: ¥1,656 million.

• Operating income dropped to ¥1,223 million from ¥2,337 million YoY; ordinary loss was ¥2,168 million (vs. ¥388 million profit prior year).

• Gross profit fell to ¥2,763 million from ¥4,914 million YoY.

• Gross assets increased to ¥45,633 million; equity ratio declined to 15.2% from 22.0% YoY.

• Free cash flow remained negative at -¥1,607 million, with significant investments in property and equipment.

Outlook and guidance

• FY March 2027 forecast: sales of ¥28,872 million, EBITDA of ¥2,402 million, net loss of ¥1,060 million; operating profit expected at ¥420 million; ordinary loss at ¥854 million.

• Business model overhaul and structural reforms underway in response to regulatory changes and compliance issues, with a focus on returning to profitability by Q4 FY March 2027.

• New facility openings suspended; priority on filling vacancies, stabilizing revenue, and improving occupancy rates.