H.I.S (HIS) announced its financial results for the fiscal year ending October 2024. The net profit was 8.717 billion yen.
The sales amounted to 343.34 billion yen, with an operating profit of 10.854 billion yen and an ordinary profit of 10.451 billion yen. This marks the first full-year profit since the COVID-19 pandemic. There will be no dividend distribution.
In the travel business, overseas travel from Japan and inbound travel by overseas subsidiaries showed strong performance. Overseas subsidiaries experienced robust inbound travel during the summer peak season, with large group bookings in Hawaii and a recovery in individual travel. Europe performed well throughout the year, driven by Italy and Spain. In the Japan subsidiary, guided tours to Europe, which are high in profitability, were popular, especially among the senior demographic. The hotel businesses in Japan sustained high occupancy rates, and room rates also increased.
The company refunded or set aside a reserve of 8.428 billion yen due to improper receipt of employment adjustment subsidies by 18 group companies. These were previously recorded as special income in the financial statements since the fiscal year ending March 2020, but were retrospectively corrected. The refund is expected to be made from available funds, ensuring sufficient working capital at present; however, necessary investments will be discussed with financial institutions.
For the fiscal year ending October 2025, the company forecasts sales of 390 billion yen, an operating profit of 12 billion yen, an ordinary profit of 11 billion yen, and a net profit of 7.7 billion yen, with expected interim and year-end dividends totaling 20 yen.
The company aims to strengthen its overall overseas travel business and recover customer numbers. It plans to focus on Europe, Hawaii, and Okinawa. It anticipates continued increasing trends in unit prices, leading to higher revenue.
In fiscal 2025, HIS plans to hire approximately 500 new graduates and increase the starting salary by 15,000 yen. Allowances will be increased in response to earnings recovery. Advertising expenses are also expected to rise.
