Miahelsa Holdings Corporation Q2 FY2026 earnings call

Overall Consolidated Performance

• Total consolidated revenue reached 11.989 billion yen, an increase of 4.3% year-over-year. Consolidated operating profit reached 193 million yen, an increase of 55.1% year-over-year. All actual results significantly exceeded the 2Q performance forecast.

Pharmaceutical Business Operational Updates

• Added 3 new medical mall-type pharmacies and closed 1 large hospital-front pharmacy. Total prescription volumes increased 6.0% year-over-year driven by new store openings, but average prescription value decreased 3.1% year-over-year. The drop in average prescription value comes from two factors: the April 2025 drug price revision, and the increasing proportion of lower average-value medical mall-type pharmacies (the company's strategic growth focus) relative to higher average-value large hospital-front locations. Cost of goods sold ratio increased 0.5 percentage points year-over-year due to rising pharmaceutical procurement costs. Large hospital-front prescription volumes are declining year-over-year due to the growing industry trend of "reverse referral" that shifts patient care from large hospitals to local clinics.

Childcare Support Business Operational Updates

• Began operations at 1 newly licensed nursery school and took over management of 1 children's center. Total number of enrolled children increased 1.4% year-over-year: new openings added 225 children, while existing facilities lost 88 children due to population decline impacts. The FY2026 official price increase also contributed to revenue growth. While labor costs increased to improve nursery staff compensation, proper staffing optimization lifted segment profit margin. As of 2Q end, the company operates a total of 56 nursery schools (52 licensed, 4 certified).

Nursing Care Business Operational Updates

• Closed 1 unprofitable home-visit nursing care station, following the transfer of other unprofitable locations in the prior fiscal year. Day service user numbers increased 3.7% year-over-year, and home-visit care utilization rate rose 2.7 percentage points to 76.2%, driven by stable demand from attached service-oriented high-rise residential facilities for the elderly. Service-oriented high-rise residential occupancy remained at a high 94% in 2Q, down 1.4 percentage points year-over-year due to a 15-person capacity expansion at the company's Oasis Higashi-Shinkoiwa property completed in April 2025. Overall profitability improved significantly after exiting unprofitable operations, with segment margin up 2.8 percentage points year-over-year.

• Pharmaceutical Business: Revenue of 4.848 billion yen, up 2.9% year-over-year. Segment profit of 202 million yen, down 23.8% year-over-year. Accounts for 40.4% of total consolidated revenue.
• Childcare Support Business: Revenue of 4.905 billion yen, up 7.3% year-over-year. Segment profit of 471 million yen, up 29.3% year-over-year. Accounts for 40.9% of total consolidated revenue.
• Nursing Care Business: Revenue of 1.758 billion yen, down 0.8% year-over-year. Segment profit of 27 million yen, turning to a black ink from a year-over-year deficit of 21 million yen (an increase of approximately 49 million yen year-over-year). Accounts for 14.7% of total consolidated revenue.

• The company maintains the original full-year 2026 March fiscal year performance guidance, with no upward or downward revision to full-year revenue, operating profit, ordinary profit, and net income forecasts.
• Half-year cumulative performance through 2Q is running ahead of the original forecast. The company aims to achieve the full-year guidance target through steady accumulation of revenue and profit in the remaining half of the fiscal year.
• Full-year revenue progress through 2Q reached 50.3%, roughly on track with the half-year target. Operating profit progress reached 41.1% and ordinary profit progress reached 44.9%, both below 50% but still ahead of the original forecast pace.

• The pharmaceutical business faces declining average prescription values from industry drug price revisions and the shift to lower-margin medical mall-type pharmacies, plus rising pharmaceutical procurement costs and upfront operating costs for new store openings that pressure near-term profitability.
• The childcare support business faces declining enrollment at existing facilities driven by ongoing population decline (negative birth rate) in Japan.
• The nursing care business faces near-term occupancy pressure following capacity expansion at one of its major service-oriented residential properties, requiring intensified sales efforts to fill new units.

No Q&A section is included in the provided earning call transcript.