Mani (7730) Q3 2026 earnings summary

Executive summary

• Achieved record quarterly sales of ¥8.29 billion and record nine-month net sales of ¥24,396 million, up 9.5% year-over-year, driven by strong overseas demand and recovery in dental products in China.

• Operating income margin reached 28.8% for Q3, with profit ahead of full-year targets and net income up 32.6% year-over-year.

• Growth was fueled by recovery in China, new product launches such as JIZAI, and strong performance in India, with sales CAGR above 20% since FY2020.

• Upward revision of full-year forecast reflects robust 3Q results and stronger-than-expected sales recovery, especially in China.

• Launched new medium-term management plan and accelerated R&D for next-generation products.

Financial highlights

• Net sales for 3Q YTD reached ¥24.40 billion, up 9.5% year-over-year; operating income rose 22.0% to ¥7.49 billion; net income increased 32.6% to ¥5.64 billion.

• Gross margin improved to 66.7% due to favorable product mix and lower manufacturing costs.

• Foreign exchange effects, especially from the euro and Chinese yuan, contributed significantly to sales and profit growth.

• SG&A ratio rose to 38% due to temporary expenses, including M&A advisory and audit costs.

• Equity capital ratio was 91.6% as of May 31, 2026.

Outlook and guidance

• Full-year forecast revised upward: net sales ¥32,900 million, operating income ¥9,700 million, net income ¥6,800 million, and EPS forecast ¥69.03.

• Q4 guidance includes conservative profit margin assumptions, factoring in production adjustments, inventory disposal, and a profit buffer for potential risks.

• Includes one-time expenses related to Takanezawa Factory closure in 4Q.

• Further upside possible if risks do not materialize.

• Continued focus on expanding product lineup and strengthening competitiveness in China and India.