Yokohama Reito recorded ¥24.2 billion in extraordinary losses for the fiscal year ending September 2026 in connection with its investments and loans to HI Group, revising its consolidated net income forecast for the year downward from a profit of ¥6.3 billion to a loss of ¥13.8 billion.
Yokohama Reito announced on the 30th that it would record ¥24.2 billion in extraordinary losses for the fiscal year ending September 2026 in connection with its investments and loans to HI Group, a Norwegian salmon processing and sales company. Accordingly, it revised its net income forecast for the year downward from the previous forecast of a profit of ¥6.3 billion to a loss of ¥13.8 billion.
The company will record ¥23.6 billion in impairment losses on investment securities and ¥500 million in provision for doubtful accounts, and indicated that it expects to post a net loss for the fiscal year ending December 2026 against a backdrop of deteriorating business conditions at HI. Of the ¥44.9 billion in cumulative investments and loans to HI, Yokohama Reito has recovered ¥19.8 billion to date and received ¥9.7 billion in interest and dividends. The balance of investments and loans stood at ¥25.1 billion as of the end of September 2026.
In light of the impairment losses, the company expects total assets for the fiscal year ending September 2026 to decrease by approximately ¥29.9 billion and has decided not to make any new investments or loans to overseas food-related companies. Its consolidated revenue forecast for the fiscal year ending September 2026 was raised from the previous forecast of ¥125 billion to ¥130.5 billion, operating profit from ¥7 billion to ¥7.1 billion, and ordinary profit from ¥6.4 billion to ¥6.6 billion.
As part of reforms to executive compensation, President Furuse Kenji (古瀬 健児) will voluntarily forgo 50% of his basic director compensation for 3 months from November. The managing director will forgo 30%, and the other full-time directors will forgo 20%; no directors' bonuses will be paid for the fiscal year ending September 2026. To strengthen its internal control system, the company is considering a transition to a company with an audit and supervisory committee, as well as the appointment of additional outside directors. Transactions with HI are expected to continue, limited to the purchase of products.
The company indicated that it would tighten its criteria for investments and loans to overseas businesses and strengthen its investment review and monitoring systems.