Japanese Hair Loss Company Aderans Reports Profits Slashed in Half
October 24, 2008 by Julian Phillips
Filed under Aderans Holdings, Aderans Research Institute, Hair Growth
Bad news last week for investors hoping to capitalize on the new stem cell and hair cloning technologies for treating hair loss. One of the key players, Japan’s Aderans Holdings Company, which partly funds hair cloning research at the Aderans Research Institute in the U.S., announced that its annual net profit will be halved on a group basis by weak sales of wigs.
For the year to February 2009, the Japanese wig maker now estimates a net profit of 300 million yen, down 49.2% from the previous year.
Group operating profit is projected at 3 billion yen, down 26.2%, and sales are estimated at 74 billion yen, down 1.3%, the first drop in four years.
The dismal earnings outlook led the firm to reduce its annual dividend estimate to 20 yen per share from the previously planned 30 yen.
For the September-February fiscal second half, the company intends to regain profitability in its North American hair transplant operations, which incurred a loss in the first half, by cutting costs and increasing contracts.
But poorly performing women’s wigs operations in Japan will be adversely affected by the closure of Isetan Mitsukoshi Holdings Ltd.’s <3099> department store in Tokyo’s Ikebukuro district, company officials said.
For March-August, Aderans reported a group net loss of 803 million yen, bigger than the year-before loss of 568 million yen. Operating profit surged 134.3 pct to 1,080 million yen, on sales of 36,052 million yen, down 0.7 pct.
Aderans reported a valuation loss of 701 million yen on shares it has in Japanese life insurer Yamato Life Insurance Co., which collapsed Friday.
A division of the company, Aderans Research Institute — formed along with the American hair transplant pioneer Bosley — is “dedicated to solving the pervasive problem of hair loss” through what it terms “state-of-the-art cell engineering technology.” The company seeks to “become the world leader in the research and development of safe, effective cell engineered products for hair regeneration.”
