Medirom Healthcare Technologies (NASDAQ: MRM) Preliminary 2022 Audit Shows $8.3 Million Increase In Revenue; Company Announces Stock Repurchases

MEDIROM Healthcare Technologies Inc. MRM (“Medirom”) is a holistic healthcare company based in Japan. Medirom operates 312 relaxation salons across Japan and is part of the health-tech industry. During the pandemic, Medirom entered the device business and produced a smart tracker called “MOTHER Bracelet”. The company has reported immense success in its field, with an 81% repeat customer ratio.

The company announced its unaudited, preliminary total revenue for 2022 under the Japanese GAAP. The company is expected to have had a total of $49.3 million in revenue for 2022, with a projected increase of $8.3 million from the previous year. The revenue increase is largely attributed to the contribution of SAWAN and ZACC, two subsidiaries that were acquired in 2021.

Easing COVID restrictions helped the company return to a higher level of performance. In 2022, over 800,000 customers were served. 

Kouji Eguchi, CEO of MEDIROM Healthcare Technologies, said, “We are pleased with the revenue growth and improved operating income achieved under local GAAP during the year ended December 31, 2022, based on the unaudited, preliminary financial results prepared under JGAAP. Our directly-operated salons and our franchised salons contributed in very complementary ways to the strong operational results of the year, as well as the growth of the sales of directly-owned salons to investors, which has become our new revenue model. In addition, the revenue contribution from our acquired salons, which  reflected the implementation of our M&A strategy, coupled with the encouraging recovery from COVID-19, led to a steady operating performance this year.”

Medirom also announced that COZY LLC (“COZY”) entered a stock repurchase plan under which COZY may purchase up to JYP50 million of the company’s American Depository Shares (ADSs). COZY is owned and controlled by Mr. Kouji Eguchi, the CEO and controlling shareholder of Medirom. COZY has no obligation to purchase but if COZY decides to buy ADSs under the plan it must do so between February 13 and March 31, 2023. 

“This decision demonstrates my confidence in Medirom’s business fundamentals and growth opportunities,” said Mr. Eguchi. Currently, Mr. Eguchi owns approximately 38.6% of Medirom’s outstanding common shares. 

The preceding/following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and Skyline Corporate Communications Group, LLC, a financial partner of Benzinga. This article/video is a paid sponsorship by investor relations agency Skyline Corporate Communications Group, LLC, which is paid by MEDIROM Healthcare Technologies Inc. MRM for providing investor relations and corporate communications services relating to the Company’s securities. Please see Skyline's 17(b) Disclaimer and Disclosure Statement here: https://skylineccg.com/disclosures/. 

Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. The content that follows is for informational purposes only and not intended to be investing advice.

This post contains sponsored advertising content. This content is for informational purposes only and is not intended to be investing advice.

Featured Photo by HUUM on Unsplash