Mani (7730) Q4 2025 earnings summary

Executive summary

• FY2025 net sales rose 5.1% YoY to JPY 29.968 billion, driven by strong surgical and eyeless needle sales, but profit declined due to a voluntary recall of DIA-BURS in China and an impairment loss at the German subsidiary.

• The recall in China was mostly completed by August 2025, with sales expected to resume in FY2026 2Q and a return to over 90% of pre-recall levels by FY2027.

• Operating income declined 2.4% YoY to JPY 8.193 billion, with a 27.3% margin, and net income dropped 17.8% to JPY 5.167 billion, mainly due to impairment losses.

• Strong sales growth in surgical and eyeless needle segments offset some negative impacts from the recall, while the dental segment contracted.

• Comprehensive income decreased 8.5% YoY to JPY 5.589 billion.

Financial highlights

• Net sales: JPY 29.968 billion for FY2025, up 5.1% YoY.

• Operating income: JPY 8.193 billion (27.3% margin); net income: JPY 5.167 billion (down 17.8% YoY).

• Extraordinary losses included a JPY 1.19 billion impairment at the German subsidiary and JPY 98 million in inventory disposal.

• Gross profit increased 7.9% YoY to JPY 19.317 billion; SG&A expenses rose 17.0% YoY to JPY 11.124 billion.

• Cash and cash equivalents at year-end were JPY 17.401 billion, down from JPY 21.017 billion the previous year.

Outlook and guidance

• FY2026 guidance: JPY 32.8 billion in net sales (+9.4% YoY), JPY 9.2 billion operating income (28% margin), JPY 6.45 billion net income (+24.8% YoY).

• Full recovery in dental product sales expected as recall impact subsides and China market resumes.

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

• CapEx for FY2026 set at JPY 3 billion; R&D expenses targeted at 8.5% of sales.

• Dividend forecast for FY2026: JPY 41 per share, up from JPY 39 in FY2025.