Medirom Healthcare Technologies Inc Stock Price, News & Analysis

Medirom Healthcare Technologies (NASDAQ: MRM) announced its financial results for fiscal year 2023, reporting net profit and positive adjusted EBITDA for the second consecutive year. Key contributors were its directly-operated wellness salons, the sale of 30 wellness salons, and growth in its Lav digital wellness app.

Revenues totaled $48.5 million, slightly down by 1.8% from 2022. The Relaxation Salon segment saw a modest revenue increase of 1.5%, but the Digital Preventative Healthcare segment saw a 48.1% decline. Operating expenses rose by 5.3%, leading to an operating loss of $2.8 million. Net income fell 22.8% to $816,000.

Despite the profit, adjusted EBITDA dropped by 19.5% to $2.2 million. Key factors were increased payroll, outsourcing costs, and interest expenses due to convertible bonds. Medirom launched full-scale operations of its REMONY Monitoring System and worked on expanding its B2B sales of healthtech platforms like MOTHER Bracelet and Gateway.

The NASDAQ JAPAN IR EVENT will take place at Nasdaq MarketSite in Times Square on June 20, 2024. MEDIROM Healthcare Technologies will participate, along with four other companies. The event aims to highlight the appeal of Japanese companies to the global market. Since MEDIROM's Nasdaq listing in December 2020, the number of Japanese companies on Nasdaq has grown to eight. The event is free with pre-registration required by June 7. It runs from 3:00pm to 9:00pm and includes presentations and an after-party.

MEDIROM Healthcare Technologies Inc. (NASDAQ: MRM) announced a stock repurchase plan under which COZY LLC, controlled by CEO Kouji Eguchi, may buy back up to JPY 50 million of the Company’s American Depositary Shares (ADSs). The Board approved the Plan on January 18, 2023, with purchases expected to occur between February 13, 2023 and March 31, 2023. Currently, Mr. Eguchi holds approximately 38.6% of the Company’s common shares, reflecting his confidence in MEDIROM’s fundamentals and growth potential. The stock repurchase will be funded personally by Mr. Eguchi, although there is no obligation for COZY to complete the purchases.

MEDIROM Healthcare Technologies Inc. (MRM) reported total revenue of approximately JPY6.5 billion (about $49.3 million) for the fiscal year ended December 31, 2022. This marks an increase of JPY1.1 billion ($8.3 million) compared to the previous year, fueled by strong contributions from newly acquired subsidiaries and rising sales at company-operated salons post-COVID-19. Operating income improved to JPY240 million ($1.8 million), reversing an operating loss from the prior year. Despite increased operating expenses of approximately JPY6.26 billion ($47.5 million), the company maintained its profitability. Management remains optimistic about continuing growth into 2023.

MEDIROM Healthcare Technologies Inc. (NasdaqCM: MRM) reported key performance indicators for September 2022. The total number of salons decreased to 312, down from 316 a year ago. However, total customers served increased to 71,770, up from 65,130, showing recovery from COVID-19. Sales per customer rose to JPY 6,505 from JPY 6,428. The repeat customer ratio decreased slightly to 80.8% from 82.0%. The operation ratio improved to 50.3% from 46.7%. The rise in sales and operational efficiency indicates positive business fundamentals amidst a slight decline in salon count.

Total Customers Served: 72,250 – Sales Per Customer: JPY 6,705 – Customer Repeat Ratio: 80.1%

On September 20, 2022, MEDIROM Healthcare Technologies Inc. (MRM) released key performance indicators for August 2022. The company reported a decrease in the number of salons from 315 to 311 year-over-year, while the total customers served increased by 8.4% to 72,250. Sales per customer rose to JPY 6,705, attributed to upselling. The repeat customer ratio fell to 80.1%, and the operational ratio improved to 49.8% due to adjusted staffing. The number of salons with data increased to 232 from 221.