During the first nine months of the current fiscal year (November 1, 2023 to July 31, 2024), there were gradual improvements in employment and corporate earnings as economic and social activities returned to normal. However, rising prices driven by the prolonged depreciation of the yen have hindered the recovery of consumer spending. Furthermore, uncertainties persist as concerns grow over the potential impact of sustained high interest rates in Europe and the U.S., as well as the slowdown in the Chinese economy, on both domestic and global markets.
In the wedding industry, the number of weddings in Japan in 2023 was 480,000 (Ministry of Health, Labour and Welfare, 2023 Annual Estimate of Preliminary Vital Statistics), down 30,000 from 2022. 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.
During the first nine months, as perceptions of the value of weddings continue to diversify in Japan, we took many actions in line with the IKK Group’s philosophy of “dedicated to the smiles and happiness of the special people in your life.” 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. I We strengthened our information collection and analysis skills that use our own sales support system. To capture a larger share of Japan’s wedding market, we integrated digital marketing as a tool to better identify potential customer needs, thus enhancing our ability to attract customers and boosting sales.
Net sales in the first nine months increased 5.3% from one year earlier to 16,533 million yen. Operating profit increased 55.1% to 1,527 million yen, ordinary profit increased 52.6% to 1,551 million yen, and profit attributable to owners of parent increased 57.3% to 998 million yen.
A fundamental management objective at IKK 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, 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.
Sep. 12, 2024