Medirom Healthcare Technologies INC (MRM) Q4 2024 earnings call Highlights: strong income …

• Total turnover: Rose by 21.5% to 52.7 million jpy.

• Costs for the sales rate: Decreased from 77% in 2023 to 72.9% in 2024.

• SG & A editions: Increased by 14.3%.

• Net income: Rose by 20.1% to JPY0.9 million.

• Cashflow from operating activities: JPY8.5 million.

• Cashflow from investment activities: JPY 2.3 million.

• Cashflow from financing activities: JPY7.6 million.

• Adapted EBITDA: Improved 2.7 million on JPY.

• Fitted EBITDA margins: Improves to 5%.

• Netto -bar- and cash equivalent: Increased by 1.4 million JPY.

• Average sales per customer: Grew by 3.9%.

• Number of salon locations: Rose from 38 in the previous year to 60.

Appearance date: May 21, 2025

You can find the complete copy of the earnings call in the complete earnings call.

• The total turnover rose by 21.5%due to the higher sales of salons and outsourcing income.

• The net profit increased by 20.1%, which is due to profits from the turnover of loans and tax states.

• The adapted EBITDA improved to 2.7 million jpy with a margin increase to 5%.

• The average sales per customer rose by 3.9%, which indicates an extended customer loyalty.

• Expansion of the digital prevention segment in healthcare with the updated laboratory lawyer and the mother bracelet.

• The sales costs rose by 15.1%due to salon-decline drop transactions.

• SG & A editions rose by 14.3%, which was due to higher professional fees and recruitment costs.

• The loss of attention was recorded due to the expected salon closures in 2025.

• Improved trust in short -term and long -term bank loans for financing activities.

• Potential risks related to global expansion and franchising plans.

Q: Can you give an overview of Medirom's financial performance in 2024? A: Fumitoshi Fujiwara, Chief Financial Officer, reported that the total turnover has increased by 21.5% to 52.7 million jpy, which is due to higher sales of salons and the outsourcing income of business activities. The costs for the sales rate decreased from 77% in 2023 to 72.9% in 2024. The net win rose by 20.1% to JPY0.9 million

Q: What were the most important drivers of the cash flow in 2024? A: The cash flow from the operating activities was 8.5 million jpy, mainly on reduced acclaimed expenses and the reclassification of PCs. The cash flow from the investment activities was 2.3 million jpy, which was due to the proceeds from salon sale. The cash flow from the financing activities was 7.6 million jpy, which are due to the proceeds from stock output and loans.

Q: What are Medirom's strategic plans for 2025? A: The company plans to increase the number of salons, especially those in SPA facilities, and to expand its digital segment for prevention health. You want to expand the user base for your laboratory application and accelerate the production of the mother bracelet. Global expansion options and cost reduction measures in salons are also part of the strategy.