AHC Group <7083>, which operates welfare services (after-school day services, employment support B type, operation of group living support facilities), care services (operation of daycare service facilities), and restaurant services, announced a revision of the third quarter (3Q) financial results and full-year performance forecast for the fiscal year 2024 ending in November after the trading on October 15.
The third quarter financial results show that cumulative revenue increased by 7.1% year-on-year to 4693 million yen, and cumulative operating profit reached 126 million yen (compared to a 70 million yen loss in the same period last year), achieving profitability. At the same time, the full-year performance forecast has been revised upwards with revenue adjusted from 6315 million yen to 6236 million yen, and operating profit adjusted from 120 million yen to 151 million yen. In the care business, measures such as user cancellations, postponement of facility openings, and closure of 3 unprofitable facilities led to a revenue reduction of 121 million yen to 1636 million yen and a segment loss of 50 million yen to -11 million yen. On the other hand, in the main welfare business, due to the higher unit compensation than initially expected from the 2024 reward revision and the timing change of facility openings, revenue was revised upwards by 38 million yen to 3421 million yen, and segment profit was increased by 48 million yen to 268 million yen, leading to an expected increase in profit.
The number of people with disabilities in Japan has increased approximately 1.8 times in 15 years, with a total of 11.602 million people (physical, intellectual, and mental disabilities), of which 16.5% of people with disabilities are using disability welfare services. The number of users and budgets for disability welfare services continue to increase, indicating a growing demand. As the market size in the company's business area expands, the ability to support from preschool to adulthood, focusing on after-school day services and residential support, has become the company's strength.
In the future, the company will concentrate resources on its main welfare business and seek further synergy between businesses. Particularly, it seems to be focusing on supporting employment for adults over 18 years old in employment support B type as part of expanding support for independent living for people with disabilities. To evolve the employment transition support business into a stronger format, the company has entered into a business partnership agreement with Manaby Co., Ltd., which has developed its own e-learning system to build a mechanism for learning IT skills at home, and has also signed a capital and business alliance with Papageno Co., Ltd., which operates employment support B type facilities. With favorable market conditions, there is a potential for continued non-linear growth through the utilization of M&A.
In terms of shareholder returns, the company aims for a consolidated dividend payout ratio of 30% and has also announced the implementation of a share buyback. With the accumulation of profits on the rise, it is important to keep an eye on the movement of stock prices.