Aesthetic Medical is Resilient, Growing, and Attracting Investors. This Leading Franchisor of Medical Clinics has a Foundation of Strong Growth - and More to Come
Japanese consumer demand for aesthetic medical treatments continues to experience rapid growth, and SBC Medical Group Holdings (SBC) is well-positioned..
The franchisee clinics have expanded to 220* primarily in Japan, SBC leads the largest network of aesthetic and medical clinics in the country.
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Key Industry Highlights:
- The Japanese beauty and personal care market is thriving and one of the fastest-growing consumer markets, driven in particular by the cosmetics and skin care segments.
- There is strong growth in the generational shift with young consumers entering the market. In segments popular among younger consumers, such as laser treatments and facial injectables
- Demand is reinforced by social media, which has a lasting effect on buying behavior when it comes to beauty and cosmetics spending.
How is SBC capitalizing on this industry?
The Company provides comprehensive consulting services to medical clinics through a franchise model. SBC leads the largest network of aesthetic and medical clinics in the country.
Its franchise network is diverse and covers various medical specialties beyond aesthetics, such as dentistry, AGA (hair loss) treatment, and fertility and women's health. With the addition of Rize Clinic and Gorilla Clinic in 2023, the network has expanded significantly (220 clinics in total, including Rize and Gorilla) and the company is targeting further growth through its multi-brand strategy.
“Attracted by the possibility of beauty treatment that can make people's minds positive through medical treatment, I opened the Shonan Beauty Clinic in Fujisawa in 2000. Beauty treatment at that time was a gray area where the amount of money and the effect of treatment were unclear. This situation has changed considerably over the past 19 years. The negative image of cosmetic surgery has been dispelled, and customers now come to cosmetic surgery clinics with the same ease as when going to a beauty salon. I feel that the world has come to accept that it is quite natural to have medical services such as beauty care to fulfill the desire to "live a positive life by becoming beautiful."
SBC Founder and CEO
Yoshiyuki Aikawa
The Reasons to Have SBC on Your Radar:
- Leading position in Japan's growing aesthetic medical market with the largest customer base. More than 3.9 million customers visited the franchisee clinics in 2023
- Already profitable enough and continuously expanding. For the fiscal year ended December 31, 2023, SBC Medical’s revenues increased 11% to $193 million with EBITDA of $8 million and net income of $39 million. Revenues increased 27% to approximately $54 million with net income of approximately $18 million for the three months ended March 31, 2024.
- Franchisee clinics are experiencing strong revenue growth. Currently, SBC provides services to 166 partner clinics located mainly in Japan. Over the last five years, the franchisees’ revenues have grown at a compound annual growth rate (CAGR) of 24%. With the addition of Rize Clinic and Gorilla Clinic in 2023, the network has expanded significantly (220 clinics in total, as of August 2024). With 10% of Japan's 86.3 million population aged 10-60 currently utilizing aesthetic medicine, SBC has a substantial opportunity to expand its reach in this largely untapped market.
- Strong balance sheet with ample leverage capacity for future growth. Approximately $96 million in cash and cash equivalents, Total Debt was only $6million and current ratio was 216% as of the end March 2024.
- Additional high growth potential in Japan through expansion into adjacent fields and in the growing global aesthetic medicine market: SBC aims to leverage its expertise, expanding into adjacent fields such as fertility treatment, hair loss treatment, and online clinic services. SBC integrated back-office platform is a market leader, with significant potential for B2B partnerships. SBC also has a potential to expand its presence in the global healthcare market, offering a broad range of medical services to its customers, beyond the aesthetic medical market in Japan. The global cosmetics market is projected to hit $205billion in 2030 from $90.37billion in 2023. (Source; Inkwood Research).
- Experienced Management. Led by CEO Dr. Yoshiyuki Aikawa (Harvard Medical School), our experienced management team is focused on building long-term value.
COMPANY OVERVIEW
Diverse Range of Franchisee Clinics
SHINJUKU/TOKYO
UMEDA/OSAKA
IN SUMMARY
Now is one of the best times to have SBC on your radar as investments in Japan heat up.
Investing legend Warren Buffett has built an impressive stake as he bets on Japan’s promising future.
It was in the summer of 2020 that Buffett’s Berkshire Hathaway first revealed it had bought stakes of about 5% in each of Japan’s top five trading companies. The American industrial and insurance conglomerate invested $6.7 billion at the time, telling shareholders it could hold and increase the size of those holdings over the long run. Today that number is said to be $10 billion.
Japan takes its beauty standards very seriously and this fast growing company is capitalizing on the massive consumer demand, especially as consumers are becoming more empowered and educated
Learn More about SBC Medical Group Holdings, Inc. by gaining access to their comprehensive investor presentation
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