Mani (7730) Q1 2026 earnings summary

Executive summary

• Achieved record-high first-quarter sales and operating income, driven by recovery in China, strong Asian performance, and favorable forex.

• Net sales rose 2.3% YoY to ¥7,828 million; operating income increased 7.0% to ¥2,255 million.

• Profit attributable to owners of parent grew 18.6% YoY to ¥1,896 million, supported by cost improvements.

• Resumed sales of dental diamond burs in China after regulatory approval, with sales expected to recover to over 80% of pre-recall levels in the latter half of FY26.

• Acquired a 36.67% stake in German distributor IRIS EYE GmbH to strengthen the European surgical business.

Financial highlights

• Net sales for 1Q FY26 were ¥7,828 million (+2.3% YoY); operating income ¥2,255 million (+7.0% YoY); ordinary income ¥2,686 million (+16.9% YoY); net income ¥1,896 million (+18.6% YoY).

• Gross profit increased 3.2% YoY to ¥5,159 million, with margin improvements from forex and cost controls.

• Comprehensive income reached ¥3,393 million, up 48.8% YoY.

• Earnings per share for the quarter: ¥19.25 (vs. ¥16.23 YoY).

• SG&A expenses rose 0.3% YoY to ¥2,904 million.

Outlook and guidance

• Full-year forecast unchanged: Net sales ¥32,800 million (+9.4% YoY), operating income ¥9,200 million (+8.2% YoY), net income ¥6,450 million (+38.9% YoY), EPS ¥65.48.

• Sales in China projected to recover to over 80% of pre-recall levels in the latter half of FY26.

• The company is on track to meet FY26 forecasts, with 1Q progress rates above 23% for all major metrics.

• Dividend forecast for FY2026: ¥41.00 per share (up from ¥39.00 in FY2025).

• Ongoing expansion in Europe and Asia, with new production capacity coming online in China.