MANI FY2026 Q1: China Market Dental Sales Down 3% YoY, Up 33% QoQ

*Source: MANI FY2026 1Q Financial Results

Dental product net sales ¥2.375 billion / Dental product operating margin improved to 14% / China market dental product sales up 33% QoQ

DentalGoodNews | Recently, MANI released its financial results briefing for the first quarter of FY2026 (September 1 to November 30, 2025). The company achieved a breakthrough in overall performance during FY2026 Q1: net sales reached ¥7.828 billion (approximately RMB 347 million), the highest quarterly level in history; operating income was ¥2.255 billion (approximately RMB 100 million), with operating margin rising to 28.8%. The company noted that the resumption of DIA-BURS sales in the China market significantly improved dental business profitability, serving as a key driver of sales growth and margin improvement this quarter.

*Source: MANI FY2026 1Q Financial Results

In terms of dental business, the company achieved net sales of ¥2.375 billion (approximately RMB 105 million) in FY2026 Q1, essentially flat year-over-year; operating profit reached ¥322 million (approximately RMB 14 million), up 45% YoY but down 16% QoQ; operating margin improved to 14%, an increase of 5 percentage points compared to the same period last year. The company noted that with the resumption of diamond bur (DIA-BURS) sales in the China market and recovering demand in Europe and North America, the dental business has shown continued recovery since Q2.

From a regional structure perspective, dental business revenue mainly came from the Asian market (¥1.398 billion, approximately RMB 62 million), with the China market achieving sales of ¥740 million (approximately RMB 33 million), down 3% YoY but up 33% QoQ; the domestic Japan market achieved sales of ¥227 million (approximately RMB 10 million), down 21% YoY and down 56% QoQ. Europe and North America markets achieved sales of ¥412 million (approximately RMB 18 million) and ¥259 million (approximately RMB 11 million) respectively, with YoY growth of 11% and 48%, providing support for dental business revenue this quarter.

Additionally, the company disclosed that its German subsidiary MMG is advancing profitability improvement measures. In FY2026 Q1, MMG achieved sales of ¥510 million (approximately RMB 23 million). Although still operating at a loss, business scale has expanded driven by increased orders from major U.S. customers and the launch of proprietary brand products. The company stated it will continue to strengthen China market recovery, advance MMG's turnaround process, and continuously promote JIZAI-1 market expansion and JIZAI-2 product development.

*Source: MANI FY2026 1Q Financial Results

Previously, MANI's DIA-BURS products initiated a voluntary recall and sales suspension in China in March 2025 due to incomplete registration documentation. Affected by this incident, related product sales in the China market during FY2026 Q1 experienced some YoY pressure, but as sales resumption progresses, the negative impact is gradually mitigating.

Regarding DIA-BURS product sales resumption progress, the company disclosed that related products received approval from Chinese regulatory authorities and resumed sales in late October 2025. In the first 4 months following resumption (November 2025 to February 2026), cumulative sales are expected to reach approximately ¥1.05 billion (approximately RMB 47 million), with sales during this period mainly used to replenish channel inventory.

The company also noted that sales recovery progress is ahead of the original plan: currently approximately 70% of key public hospitals, approximately 50% of clinics, and approximately 90% of distributors have repurchased related products. The company expects that in the second half of FY2026 (March–August), DIA-BURS sales volume will recover to over 80% of pre-recall levels.

Furthermore, the company disclosed continued advancement of JIZAI series NiTi root canal file market expansion during the reporting period, with JIZAI products achieving approximately 90,000 units in sales volume during FY2026 Q1. In terms of production capacity construction, the company's Hanaoka smart factory in Tochigi Prefecture, Japan has completed construction and will serve as the mother factory, gradually launching automated production systems including JIZAI products starting in 2026.

*Source: MANI FY2026 1Q Financial Results

Regarding future outlook, the company maintained unchanged full-year performance expectations for FY2026 (September 1, 2025 to August 31, 2026): projected net sales of ¥32.8 billion (approximately RMB 1.453 billion), operating income of ¥8.95 billion (approximately RMB 396 million), and net income attributable to parent company shareholders of ¥6.45 billion (approximately RMB 286 million).