In the first quarter of the current fiscal year (November 1, 2020 to January 31, 2021), a state of emergency was declared again in some areas of Japan because of the increasing number of COVID-19 cases. There are also activities aimed at preventing the spread of infections while maintaining economic activities. The outlook in Japan remains uncertain because of worries about another wave of infections as the pandemic continues to grow worldwide.
The business climate for the wedding industry remained extremely challenging. In response to COVID-19, people avoided closed spaces, crowded places and close-contact settings. As they also stayed home as much as possible and took other actions, there were postponements of weddings, receptions and other events attended by many people.
The IKK Group is holding weddings and receptions while doing everything possible to protect people from infections based on the stance of making the safety of customers and employees the highest priority. However, first quarter sales and earnings were lower than one year earlier as the number of weddings and sales per wedding decreased.
First quarter sales decreased 55.2% from one year earlier to 1,900 million yen. The operating loss was 909 million yen compared with a 7 million yen profit one year earlier, the ordinary loss was 448 million yen compared with a 14 million yen profit one year earlier, and the loss attributable to owners of parent was 455 million yen compared with a 1 million yen loss one year earlier.
A fundamental management objective at IKK Group is for our corporation to become indispensable to local communities through the contributions we make to society with our style of corporate management based on our management philosophy, “To touch our customers' hearts!” We are also aware that strengthening the growth potential and excellence of our company while increasing corporate value and longevity are among the challenges we face as management.
At IKK Group, we take seriously our mission and responsibility as a public institution of society and are determined to be a leading company in the wedding industry as we continue to share and test our corporate philosophy. Toward that end, we ask our shareholders and investors for their continued guidance and encouragement.
March 8, 2021