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 the first half and its estimates for full fiscal year December 2013.
- During the current first half, sales rose by 13.4%, while operating and current profits declined by 39.8% and 43.0% year-over-year. These figures were basically in line with the Company’s estimates.
- Based on anticipation of seasonal increases in sales during the second half and the strong order environment, full year sales and operating and current profit estimates have been revised upwards. NOVARESE’s revised estimates now call for sales and current profit to rise by 14.8% and 17.2% year-over-year during FY12/13.
- The Bridge Report calls attention to NOVARESE’s successful efforts to fortify its advertising and the higher sales resulting from relatively strong wedding orders trends, in addition to highlighting the opening of new wedding facilities and their contribution to increased brand recognition and earnings in the future.
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 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 current first half, sales rose by 13.4% year-over-year to JPY5.8 billion on the back of the strong 10.2% year-over-year increase in wedding order backlog at the term start. Reviews of NOVARESE’s advertising strategy and initial costs arising from the opening of new facilities including “KYUSAKURANOMIYA KOKAIDO” in April, and the impending opening of the “TSUJIKETEIEN” in December caused operating profit to decline by 39.8% year-over-year to JPY140 million.
In light of the recovery in wedding orders at existing facilities and the contribution from newly opened facilities, the assumption for the number of weddings to be performed has been raised from initial estimates of 2,870 to 2,910 for a 10.2% year-over-year increase. Along with anticipation of a strong increase in weddings, sales and operating and current profit estimates have also been revised upwards (Net profits have been revised downwards because of impairment losses booked during the first half.) and are now expected to grow by 14.8%, 17.8% and 17.2% year-over-year to JPY13.5, JPY1.4 and JPY1.4 billion respectively.
In addition to these positive developments, the Bridge Report also calls attention to NOVARESE’s success in fortifying its advertising strategy and strong wedding orders trends. The Report also highlights the potential contribution from recently opened facilities including the “JAMES-TEI” and “KYUSAKURANOMIYA KOKAIDO,” and the impending opening of “TSUJIKETEIEN” wedding facilities to increasing both the brand recognition and future earnings of NOVARESE.
To view the full report, please go to the website at the URL listed
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.