Operating Results for the Fiscal Year Ended October 31, 2018 (FY2018)
During the current consolidated fiscal year (November 1, 2017 to October 31, 2018), the Japanese economy recovered slowly with the support of a stronger labor market, increasing capital expenditures and other improvements as corporate earnings remained high. However, the economic outlook became more uncertain near the end of the fiscal year due to concerns about the effects of global trade problems, government policies and other developments.
In the wedding industry, the number of weddings in Japan in 2017 was 607,000 (Ministry of Health, Labour and Welfare, 2017 Annual Estimate of Vital Statistics), down 14,000 from 2016. Although the number of weddings and receptions is decreasing slowly as the prime wedding age population declines, the guest house wedding market is still generally healthy.
Differentiating wedding services from those of competitors is becoming increasingly difficult. During the fiscal year, we took many actions in line with the IKK Group’s philosophy of “touching our customers’ hearts.” There were internal and external employee training activities to give our people the personal strengths and customer interaction skills needed to provide personalized wedding services. In addition, we used our own sales support system to analyze operating data and used many initiatives at wedding facilities to attract more customers.
To capture a larger share of Japan’s wedding market, we are working on building an infrastructure capable of quickly meeting the increasingly diverse needs and expectations of customers and using an introduction system for maintaining a cycle in which we receive new customer referrals from current customers. All these actions are aimed at sales and earnings growth.
Fiscal year net sales increased 10.1% from one year earlier to 20,009 million yen, operating profit increased 13.5% to 2,067 million yen, ordinary profit increased 14.8% to 2,094 million yen, and profit attributable to owners of parent increased 3.5% to 1,365 million yen.
Operations started in the first quarter at La La Chance Okazaki Geihinkan (Okazaki Branch), which opened in October 2017, and Castle Garden OSAKA (Osaka Branch), which opened in December 2017. There was a decrease in the number of weddings at existing locations, but sales increased 10.6% from one year earlier to 19,219 million yen. Operating profit increased 14.6% to 2,026 million yen even though there were expenses for opening Castle Garden OSAKA (Osaka Branch) and higher personnel expenses.
Sales decreased 8.2% from one year earlier to 296 million yen and operating profit decreased 70.6% from one year earlier to 6 million yen.
Sales increased 6.2% from one year earlier to 500 million yen and operating profit increased 9.4% to 33 million yen.