Mani (7730) Q4 2025 earnings summary

Executive summary

• Net sales increased 5.1% year-over-year to ¥29,968 million, driven by strong surgical and eyeless needle sales, while dental sales declined due to a voluntary recall in China and weak performance in Europe.

• Operating income declined 2.4% to ¥8,193 million, impacted by higher SG&A expenses and an impairment loss at the German subsidiary MMG.

• Net income dropped 17.8% to ¥5,167 million, mainly due to the impairment loss and the China recall.

• The recall in China was mostly completed by August 2025, with sales expected to resume in FY26 2Q.

• Comprehensive income decreased 8.5% year-over-year to ¥5,589 million.

Financial highlights

• Gross profit increased 7.9% year-over-year to ¥19,317 million; gross margin improved to 64.5% from 62.8%.

• SG&A expenses rose 17.0% year-over-year to ¥11,124 million; SG&A ratio increased to 37.1% from 33.3%.

• Operating income declined 2.4% to ¥8,193 million; ordinary income was ¥8,271 million, down 2.3%.

• Extraordinary loss of ¥1,190 million recorded due to asset impairment at MMG.

• Cash and cash equivalents at year-end were ¥17,401 million, down from ¥21,017 million.

Outlook and guidance

• FY2026 forecasts net sales of ¥32,800 million (+9.4%), operating income of ¥9,200 million (+12.3%), and net income of ¥6,450 million (+24.8%).

• Full resumption of dia-burs sales in China expected from FY26 2Q, supporting dental segment recovery.

• Ongoing expansion in surgical and eyeless needle products, with growth in North America, Europe, and Asia.

• Negative impact from U.S. tariff policy estimated at ¥200 million.

• Strategic focus on growth, business investments, and strengthening management foundation.