HIS revises forecast downward, profit down 15.6% amid Turkish subsidiary scale-back

HIS Co., Ltd. announced a downward revision to its full-year consolidated financial forecast for the fiscal year ending October 31, 2025. While net sales, operating profit, and ordinary profit forecasts remain unchanged, profit attributable to owners of parent is now projected at 6.5 billion yen, a 15.6% decrease from the previous 7.7 billion yen. This adjustment is primarily due to the scale-back of its Turkish subsidiary, which incurred extraordinary losses from special retirement benefits and other related expenses.

For the nine months ended July 31, 2025, HIS reported net sales of 266.3 billion yen and operating profit of 6.2 billion yen. However, profit attributable to owners of parent significantly decreased by 50.2% to 1.7 billion yen, compared to 3.5 billion yen in the prior year. The company also recorded extraordinary income from the reversal of an allowance for doubtful accounts (1.3 billion yen) and extraordinary losses from the valuation of shares in subsidiaries and associates (1.6 billion yen).

Additionally, HIS disclosed that its consolidated subsidiary, Tour Wave Co., Ltd., wrongfully received 184,062,660 yen (including penalties and late payment charges) in employment adjustment subsidies. The funds have been repaid, and disciplinary action has been taken against Tour Wave's president. HIS continues to implement measures to prevent recurrence, including strengthening compliance and group governance.