TOKYO--(BUSINESS WIRE)--Investment Bridge, one of Japan's leading IR services companies, has released a "Bridge Report" on NOVARESE, Inc. (TOKYO:2128) reviewing its earnings performance in fiscal year December 2011 and its strong earnings growth estimates for the fiscal year December 2012.
Report Highlights
- During the fiscal year December 2011, NOVARESE sales rose by 1.3% while current profit declined by 28.4% compared with results of non-consolidated accounts in the previous term.
- During the fiscal year December 2012, sales and current profits are expected to increase by 13.8% and 19.0% year-over-year respectively.
- NOVARESE implemented various measures including the launch of new services and products targeting new price segments of the market to capture business from customers who have become increasingly price sensitive in the wake of the Great East Japan Earthquake.
NOVARESE is one of Japan's leading wedding production and related services providers and it pursues a corporate philosophy of providing entertaining and unique experiences to its customers in its main businesses of wedding ceremony production, wedding clothing, and hotels and restaurants operations. NOVARESE targets Japanese in the latter half of their 20s to 30s and provides them with simply designed and modern weddings that are highly unique, which in turn allows NOVARESE to achieve high levels of profitability.
During the term under review, sales rose by 1.3% while operating profit declined by 30.4% year-over-year to JPY11.0 billion and JPY1.26 billion respectively. The stronger sales are attributed to the opening of new facilities during the previous and current terms. However a deterioration in gross margin due to the introduction of a wider pricing strategy in its wedding services, increases in operating costs arising from newly opened facilities, and higher depreciation costs resulting from a shortening of the time schedules for fixed assets contributed to the lower profits.
Total assets rose by JPY234 million from the end of the previous term to JPY8.970 billion at the end of the current term due to an increase in tangible fixed assets accompanying the opening of new facilities. At the same time, capital investments, taxes, dividend payments and reductions in interest bearing liabilities contributed to a decline in cash and equivalents.
During fiscal year December 2012, sales and operating profit are expected to grow by 13.8% and 21.2% year-over-year to JPY12.54 and JPY1.53 billion respectively based on NOVARESE's assumption of an 18.8% year-over-year growth in weddings to 3,059 and the opening of two new wedding facilities and one restaurant during the term.
To view the full report, please go to the following
URL: http://www.bridge-salon.jp/report_bridge/archives/eng/2128/20120307.html
About Bridge Report:
Bridge Report is produced by Investment Bridge
Co., Ltd. and provides accurate and objective information about the
earnings, business strategies, and other information of publicly traded
Japanese companies.