Sunwels (9229) Q1 2027 earnings summary

Executive summary

• Specialized in healthcare and caregiving for Parkinson's disease, with the PD House network expanding to 56 locations as of June 2026.

• Net sales for the three months ended June 30, 2026, rose 10.5% year-over-year to ¥7,298 million, but the company posted an operating loss of ¥347 million, an ordinary loss of ¥519 million, and a net loss of ¥557 million, all narrower than the prior year.

• Underwent leadership change with a new President & Representative Director, emphasizing governance reform and trust restoration.

• Profitability declined due to structural reforms and changes in the medical fee system, particularly impacting home-visit nursing care services.

• Temporarily suspended new facility openings to focus on revenue model transformation and cost structure review.

Financial highlights

• 1Q FY March 2027 sales were ¥7,298 million, up 10.5% year-over-year, but slightly below plan due to slower customer acquisition.

• EBITDA for 1Q was ¥115 million, up ¥211 million year-over-year, but only 36.3% of the forecast.

• Gross profit for the quarter was ¥539 million, down from ¥563 million year-over-year.

• Operating income and net income improved year-over-year, driven by higher occupancy and cost reductions, but remained negative.

• Depreciation expense for the quarter was ¥459 million, up from ¥408 million year-over-year.

Outlook and guidance

• Full-year sales forecast is ¥28,872 million, with profit improvement expected from occupancy growth and staffing revisions.

• Full-year forecast: operating profit of ¥420 million, ordinary loss of ¥854 million, net loss of ¥1,060 million, and EPS of negative ¥32.71.

• EBITDA for the full year is projected at ¥2,402 million, a 267.2% increase year-over-year.

• Ongoing review of investment plans and asset utilization to optimize capital allocation.

• Application for transfer to the Tokyo Stock Exchange Standard Market submitted, with review deadline by March 2027.