Sunwels (9229) Q4 2025 earnings summary

Executive summary

• Net sales rose 31.8% year-over-year to ¥26,496 million, driven by expansion of PD House facilities for Parkinson's disease care.

• Achieved 91% occupancy in existing facilities and 70% in new ones, with a recovering trend in inquiries and applications since March.

• Hired 1,354 new employees, surpassing the plan, but turnover increased to 13.6% due to media impact.

• Operating profit declined 51.0% to ¥1,114 million and ordinary profit fell 77.4% to ¥388 million due to special investigation costs and penalties.

• Extraordinary losses included ¥638 million in special investigation costs and a ¥62 million listing agreement penalty.

Financial highlights

• EBITDA declined 19.0% to ¥2,513 million, and operating income dropped 51.0% to ¥1,114 million due to higher costs and operational restructuring.

• Net income recorded a loss of ¥925 million, compared to a profit of ¥802 million the previous year.

• Gross assets increased to ¥38,994 million, and net assets to ¥8,616 million, mainly due to disposal of treasury shares.

• Cash and cash equivalents at year-end rose to ¥5,637 million, up ¥2,330 million year-over-year.

• Equity ratio improved to 22.0% from 16.4% a year earlier.

Outlook and guidance

• FY March 2026 sales forecast at ¥31,106 million, with profitability expected to recover in the second half after a major operational reorganization and opening of 13 new facilities.

• Net income is forecasted to remain negative at ¥1,823 million loss, with operating loss of ¥369 million and ordinary loss of ¥1,613 million.

• No dividend is planned for FY March 2026 due to ongoing losses.