Mani (7730) Q3 2025 earnings summary

Executive summary

• Net sales increased 3.1% year-over-year in FY25 3Q to ¥22,280 million, driven by strong surgical and eyeless needle product sales, while the dental segment declined due to a voluntary 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 the recall ongoing since March and expected to conclude by August 2025.

• Full-year sales forecast reduced by JPY 1.19 billion from lower shipments and JPY 330 million from product returns due to the recall.

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

• FY 2025 revenue forecast for China revised down by JPY 300 million to JPY 7.7 billion, with recovery expected in FY 2026 and 2027.

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).

• Revised FY 2025 guidance: JPY 29.6 billion net sales, JPY 7.9 billion operating income, JPY 5.45 billion net income.

• Gross profit increased 4.7% YoY to ¥14,249 million; SG&A expenses rose 14.1% to ¥8,113 million.

• Extraordinary losses rose due to asset retirement; extraordinary income included a gain on sale of equipment.

• Depreciation increased due to new Hanaoka factory, with JPY 120 million recorded over four months.

Outlook and guidance

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

• FY 2025 is expected to be the bottom, with growth targeted for FY 2026 and 2027; recovery in China sales growth expected by FY26.

• Approval for amended product registrations in China anticipated by March 2026.

• Full-year forecast incorporates estimated JPY 40 million impact from U.S. tariffs.

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