Mani (7730) Q3 2025 earnings summary

Executive summary

• Net sales increased 3.1% year-over-year in FY25 3Q to ¥22.28 billion, driven by strong surgical and eyeless needle sales, but operating and net income declined due to a significant voluntary dental product recall in China.

• The recall of "MANI DIA-BURS" in China led to a ¥1.33 billion sales reduction and ¥1.04 billion profit impact in 3Q, with recall volume rising from 1.5 million to 3.75 million units.

• Operating income decreased 5.6% YoY to ¥6.14 billion, affected by higher personnel costs and performance-linked bonuses.

• Net income fell 16.3% YoY to ¥4.25 billion, impacted by lower operating income, reduced foreign exchange gains, and increased depreciation.

• Sales outside China, especially in Central/South America, Russia, Egypt, Japan, Europe, and Asia, showed strong growth.

Financial highlights

• FY25 3Q net sales: ¥22.28 billion (+3.1% YoY); operating income: ¥6.14 billion (−5.6% YoY); net income: ¥4.25 billion (−16.3% YoY).

• Gross profit increased 4.7% YoY to ¥14.25 billion; SG&A expenses rose 14.1% YoY to ¥8.11 billion.

• Earnings per share for nine months was ¥43.19, down from ¥51.60 YoY.

• Total assets stood at ¥57.18 billion and net assets at ¥52.67 billion as of May 31, 2025.

• Equity capital ratio improved to 92.1% from 91.5% at the previous fiscal year-end.

Outlook and guidance

• Full-year FY25 forecasts revised downward: net sales ¥29.6 billion (−2.0% vs. previous), operating income ¥7.9 billion (−11.2%), net income ¥5.45 billion (−13.3%).

• Expect full recovery in China sales growth by FY26, with FY25 as the bottom.

• No changes to the annual dividend forecast of ¥39.00 per share.

• Uncertainty remains regarding the impact of U.S. tariff policy; ¥40 million profit impact assumed.