Core Insights - MEDIROM Healthcare Technologies Inc. reported preliminary financial results for the year ended December 31, 2024, indicating sustained revenue growth and improved operating profitability [1][12] - The company expects total revenue of approximately JPY 8.2 billion ($52.6 million), a projected increase of JPY 1.4 billion ($9.2 million) from the previous year [5][8] - Adjusted operating income is anticipated to be around JPY 160 million ($1.0 million), marking a significant recovery from an operating loss in 2023 [5][12] Financial Performance - Total revenue for 2024 is projected at JPY 8.2 billion ($52.6 million), driven by increased sales of salons, store outsourcing revenue, and revenue from a newly acquired rehabilitation business [5][12] - Adjusted operating expenses are expected to be approximately JPY 8.12 billion ($51.6 million), reflecting an increase of JPY 0.9 billion ($5.7 million) due to higher costs associated with salon operations and professional fees [5][8] - The adjusted operating income of JPY 160 million ($1.0 million) represents a recovery of JPY 552 million ($3.5 million) from the previous year's operating loss [5][12] Key Performance Indicators - The total number of salons operated by the company was 308 as of December 2024, serving 945,395 customers throughout the year [10][20] - Average sales per customer were JPY 7,111 ($45.2), with a repeat customer ratio of 76.3% [10] - The average operation ratio stood at 45.7% for the year [10] Management Commentary - The CEO expressed satisfaction with the revenue growth and improved operating income, attributing success to the recovery from the COVID-19 pandemic and the growth in salon sales to investors [12] - The company aims to maintain its growth momentum into 2025 while completing the audit of its financial results under U.S. GAAP [12][16]
MEDIROM Healthcare Technologies Inc. Announces Preliminary, Unaudited Financial Results for Full Year 2024 Under Japanese GAAP