TOKYO - MEDIROM Healthcare Technologies Inc. (NasdaqCM: MRM), a Japanese holistic healthcare provider with a market capitalization of $5.81 million, disclosed its updated Key Performance Indicators (KPIs) for November 2024 today, revealing a slight increase in customer traffic and sales per customer at its relaxation salons. According to InvestingPro data, the company has achieved a modest revenue growth of 2.8% over the last twelve months, despite challenging market conditions.
The company served 75,760 customers in November 2024, a marginal rise from the 75,290 customers served in the same month of the previous year. Sales per customer also saw a slight uptick to JPY 7,055 in November 2024 from JPY 7,045 year-over-year. The repeat customer ratio remained steady at 77.5%, reflecting a consistent customer return rate. The operation ratio, which measures therapists' in-service time against total working hours, increased to 44.6% in November from 43.9% in the year-ago period. InvestingPro analysis indicates the company operates with a significant debt burden and faces challenges in cash management, with a weak Financial Health Score of 1.48.
In the health tech segment, MEDIROM's Lav® app, which supports a government-specific health guidance program, has seen continued adoption. As of November 2024, the company has secured contracts with 95 corporate insurance associations, and the cumulative number of users for the Lav® app has surpassed 8,000 individuals, reaching a total of 8,515.
The company's performance indicators suggest stability in its salon operation business and growth in its health tech services. MEDIROM's focus on data-driven healthcare services is aligned with the Japanese government's efforts to increase the implementation rates of specific health checkups and guidance, which have been mandatory for medical insurers since April 2008.
Despite the positive indicators, the press release contains forward-looking statements that are subject to the usual risks and uncertainties associated with the healthcare industry, including economic conditions, market competition, and regulatory changes.
The company, which operates 308 relaxation salons across Japan and develops health-related products and services, aims to leverage its offerings to become a leader in healthcare data management. This news is based on a press release statement from MEDIROM Healthcare Technologies Inc.
In other recent news, MEDIROM Healthcare Technologies Inc. has announced a significant capital and business alliance with Elematec Corporation. The partnership involves a substantial investment by Elematec into MEDIROM's subsidiary, MEDIROM MOTHER Labs Inc., during its Series A funding round. This collaboration aims to expand the distribution channels for MEDIROM's MOTHER Bracelet, a health monitoring device.
MEDIROM has also made headway in the rehabilitation industry by establishing a new subsidiary, MEDIROM Rehab Solutions Inc., which has acquired all rehabilitation centers previously owned by Y's, Inc. This move marks MEDIROM's entry into the rehabilitation sector, demonstrating its commitment to diversifying its service offerings.
Moreover, the company has announced plans to acquire 70% of Japan Gene Medicine Corporation, a firm that specializes in prenatal genetic testing and analysis. This acquisition is part of MEDIROM's strategy to expand its HealthTech solutions portfolio. These recent developments highlight MEDIROM's ongoing efforts to integrate its healthcare technology with on-ground services to meet the diverse needs of patients in Japan.
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