MANI, INC. (7730): FY2025 Results Summary — Higher Revenue, Lower Profit Amid China Dia-Burs Recall

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MANI, INC. (7730) reported higher revenue but lower profit for the fiscal year ended August 31, 2025 (FY2025), as a voluntary recall of “MANI DIA-BURS” dental rotary instruments in China weighed on results. Consolidated net sales rose 5.1% year on year to ¥29,968 million, while operating income declined 2.4% to ¥8,193 million and net income fell 26.1% to ¥4,643 million. The Surgical and Eyeless Needle segments continued to grow, while the Dental segment’s sales and profit declined mainly due to the China recall and an impairment of non-current assets at the company’s German subsidiary, MANI MEDICAL GERMANY (MMG). This presentation is labeled by the company as a “Revised version” dated October 8, 2025.

Consolidated Results (Full-Year Actual)

Net sales increased 5.1% year on year to ¥29,968 million against a FY2025 revised forecast of ¥29,600 million (progress rate 101.2%). Operating income decreased 2.4% to ¥8,193 million (103.7% of the revised forecast), ordinary income decreased 2.3% to ¥8,271 million (106.0% of the revised forecast), and net income decreased 26.1% to ¥4,643 million (85.2% of the revised forecast). The company attributed the profit decline mainly to the temporary impact of the voluntary recall of dia-burs in China, together with an impairment of non-current assets at Germany’s MMG (¥1,190 million recorded in extraordinary loss) and inventory disposal of long-stagnant products (¥98 million recorded in cost of sales).

Item	FY2024 Results (A)	FY2025 Results (B)	Change (B-A)	Change %	FY2025 Revised Forecast (D)	Progress Rate (B/D)
Net sales	28,513	29,968	+1,454	+5.1%	29,600	101.2%
Cost of sales [%]	10,616 (37.2%)	10,650 (35.5%)	+33	+0.3%	10,800 (36.5%)	98.6%
SG&A expenses [%]	9,505 (33.3%)	11,124 (37.1%)	+1,619	+17.0%	10,900 (36.8%)	102.1%
Operating income [%]	8,392 (29.4%)	8,193 (27.3%)	(198)	(2.4%)	7,900 (26.7%)	103.7%
Ordinary income	8,464	8,271	(192)	(2.3%)	7,800	106.0%
Net income	6,286	4,643	(1,643)	(26.1%)	5,450	85.2%

Segment Results

Net sales in the Surgical Products segment grew 13.8% year on year to ¥9,274 million, with operating income up 16.6% to ¥3,080 million (operating income margin 33.2%), driven by sales growth in ophthalmic knives in Europe, Asia (mainly China), Japan and North America. In the Eyeless Needle Products segment, net sales grew 9.4% to ¥11,183 million and operating income rose 3.4% to ¥4,002 million (margin 35.8%), led by growth in China supported by strategic partnerships and GPO orders. In the Dental Products segment, net sales fell 6.2% to ¥9,509 million and operating income fell 40.9% to ¥1,110 million (margin 11.7%), reflecting the significant impact of the voluntary recall of dia-burs in China, while other regions such as Russia and Japan grew more than 20% year on year. MMG posted FY2025 sales of ¥1.9 billion and a loss of ¥320 million and is undergoing structural reforms for profitability.

Segment	Net Sales FY2024	Net Sales FY2025	Net Sales Change	Operating Income FY2024	Operating Income FY2025	Operating Income Margin FY2025
Surgical Products	8,152	9,274	+1,122	2,640	3,080	33.2%
Eyeless Needle Products	10,222	11,183	+961	3,872	4,002	35.8%
Dental Products	10,139	9,509	(629)	1,878	1,110	11.7%

FY2026 Forecast

For FY2026, the company forecasts consolidated net sales of ¥32,800 million (+9.4% year on year), operating income of ¥9,200 million (+12.3%), ordinary income of ¥8,950 million (+8.2%) and net income of ¥6,450 million (+38.9%), reflecting an expected recovery from the China dia-burs recall, with full-lineup sales anticipated to resume from FY2026 2Q (December 2025-February 2026). FY2026 is positioned as the first year of the company’s new medium-term plan, which targets FY29 consolidated net sales of ¥45 billion and an operating income margin of 32%, supported by growth investments (including U.S. operations and new product development) and strengthening of the management foundation (regulatory affairs, SCM, BPR/DX).

Item	FY2025 Results	FY2026 Forecast	Change (Amount)	Change %
Net sales	29,968	32,800	+2,832	+9.4%
Cost of sales [%]	10,650 [35.5%]	11,400 [34.8%]	+750	+7.0% [(0.7%)]
SG&A expenses [%]	11,124 [37.1%]	12,200 [37.2%]	+1,076	+9.7% [+0.1%]
Operating income [%]	8,193 [27.3%]	9,200 [28.0%]	+1,007	+12.3% [+0.7%]
Ordinary income	8,271	8,950	+679	+8.2%
Net income	4,643	6,450	+1,807	+38.9%

Shareholder Returns

There is no change from the FY2025 dividend forecast. The company decided on a FY2025 year-end dividend of ¥23 per share (annual dividend: ¥39 per share). For FY2026, the company forecasts an annual dividend of ¥41 per share (interim dividend ¥17, year-end dividend ¥24), continuing the steady dividend increases set out under the financial management policy of its FY29 medium-term plan.

Item	FY2025	FY2026 Forecast
Annual dividend per share	¥39	¥41
Interim dividend per share	–	¥17
Year-end dividend per share	¥23	¥24
Dividend payout ratio	82.7%	62.6%

Medium-Term Plan / Topics

MANI’s new medium-term plan targets FY29 consolidated net sales of ¥45 billion and an operating income margin of 32%. Regarding the voluntary recall of dia-burs in China, the company applied for regulatory modification of the corrected products in March 2025; the approval process is progressing ahead of the initial schedule (originally expected by March 2026), and sales of all dia-burs are anticipated to resume from FY2026 2Q (December 2025-February 2026). Cumulative shipments of the company’s JIZAI product series reached 340,000 units in FY2025 (+56% year on year), achieving the initial plan; the company plans to continue expanding the JIZAI series, including development of JIZAI-2. The company is also promoting a turnaround of its German subsidiary MMG, which recorded a non-current asset impairment in FY2025.

This article is an analysis based on publicly available information and is not a recommendation to buy or sell any specific securities. Investment decisions are your own responsibility.