Sunwels (9229) Q1 2025 earnings summary

Executive summary

• Opened 3 new PD House facilities in Q1 FY March 2026, bringing total to 46 nationwide, with high occupancy rates maintained.

• Net sales for the three months ended June 30, 2024, rose 43.5% year-over-year to ¥6,636 million, with operating profit up 53.8% to ¥981 million and net profit up 30.9% to ¥520 million.

• Growth driven by expansion of specialized Parkinson's disease care, addressing societal healthcare challenges.

• Achieved 86% occupancy at existing facilities and 14% at new facilities, with efforts underway to improve new facility occupancy.

• Continued expansion planned, with 56 facilities targeted by end of FY March 2026.

Financial highlights

• Q1 FY March 2026 sales were ¥6,605 million, up 5.9% year-over-year.

• EBITDA for the quarter was ¥1,255 million, up 56.8% year-over-year.

• Operating income was ¥507 million, ordinary income ¥687 million, and net income ¥725 million.

• Gross profit increased to ¥1,887 million from ¥1,360 million year-over-year.

• Results were largely in line with forecasts, with a 95.8% achievement rate for sales.

Outlook and guidance

• Full-year forecast for FY2025: net sales ¥28,807 million (+34.9% YoY), operating profit ¥4,860 million (+37.8%), net profit ¥2,627 million (+27.8%), EPS ¥86.88.

• Full-year sales forecast is ¥31,106 million, with continued facility openings and focus on improving occupancy rates.

• Dividend forecast for FY2025 is ¥18.00 per share, up from ¥14.00 in FY2024.

• Profitability expected to improve as new facilities ramp up occupancy and operational efficiency.