Mani (7730) Q1 2026 earnings summary

Executive summary

• Achieved record-high first-quarter net sales of ¥7,828 million and operating income of ¥2,255 million, with an operating margin of 28.8%, driven by recovery in China and strong Asian performance.

• Net income rose 18.6% year-over-year to ¥1,896 million, supported by foreign exchange gains and improved cost ratios.

• Resumed sales of dental diamond burs (DIA-Burs) in China after regulatory approval, with cumulative sales of JPY 1.05 billion from November to February and recovery expected to over 80% of pre-recall levels in the latter half of FY2026.

• Acquired a 36.67% stake in German distributor iRIS EYE GmbH to strengthen the European ophthalmic business and deepen market presence.

• Established a new factory in Foshan, China, to enhance competitiveness, localize production, and respond to domestic policies.

Financial highlights

• Net sales increased by 2.3% year-over-year to ¥7,828 million, with operating income up 7.0% to ¥2,255 million and ordinary income up 16.9% to ¥2,686 million.

• Gross profit improved due to favorable forex and cost ratio improvements, reaching ¥5,159 million (+3.2% YoY).

• SGA expenses were in line with plan, and comprehensive income rose 48.8% year-over-year to ¥3,393 million.

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

• Cash and deposits increased, driven by strong operating cash flow and higher free cash flow.

Outlook and guidance

• DIA-Burs sales in China are projected to recover to over 80% of pre-recall levels in the latter half of FY2026, with positive financial impact expected to fully materialize in Q2.

• 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.

• Annual growth target of 9% for the surgical segment remains on track.

• JIZAI II product launch scheduled for September 2026.

• 1Q progress rates above 23% for all major metrics, supporting positive outlook.