teno.Holdings Company Limited [7037.T]

TOKYO, May 15 (Pulse News Wire) – Teno.holdings Company Limited (7037.T) reported strong first quarter results for the fiscal year ending December 2026. Revenue reached ¥30 billion, up from the previous year, while operating profit increased to ¥2 billion.

The growth was driven by higher sales from newly entrusted childcare facilities and after-school programs since April 2025, contributing significantly to revenue gains. In the childcare sector, the company saw a notable increase in sales due to new facility openings and rising public pricing rates. Additionally, the company implemented cost-saving measures such as forward-moving price adjustments typically done in March, leading to reduced labor costs and improved profitability. Despite some initial expenses related to new care facilities, the overall profit margin rose due to increased occupancy rates and operational efficiencies.

For the fiscal year ending December 2026, Teno Holdings projects continued revenue and profit growth, aiming for a robust performance across its key segments. The company's long-term vision, tenoVISION2030, focuses on strengthening core businesses, expanding through mergers and acquisitions, and enhancing shareholder value. Teno Holdings plans to allocate funds generated from its successful childcare operations towards further development in elderly care services and potential M&A activities. Looking ahead, the company remains committed to achieving sustainable growth and improving capital efficiency, targeting a return on equity (ROE) within its shareholders' expected rate of return.

Teno Holdings also anticipates maintaining stable dividend payouts while ensuring sufficient internal reserves for future investments.

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