Euglena (2931) Q1 2025 earnings summary

Executive summary

• Q1 FY2025 sales rose 7% year-over-year to JPY 11,936 million, driven by healthcare and biofuel business growth.

• Adjusted EBITDA increased 44% year-over-year to JPY 1,546 million, with operating income more than doubling to JPY 618 million.

• Profit structure improvements and cost reductions, including a voluntary retirement program, contributed to higher profitability.

• Net income was negative at JPY -507 million due to extraordinary losses from the retirement program and tax impacts.

• Profit attributable to owners of parent was a loss of JPY 507 million, compared to a profit of JPY 191 million in the prior year.

Financial highlights

• Healthcare business sales grew 6% year-over-year, supported by Saticine Medical Group consolidation.

• Biofuel business sales and profits increased, aided by new consolidation and subsidies.

• Gross margin slightly declined to 70% from 72% year-over-year.

• Adjusted EBITDA margin improved to 19% from 16% in the prior year.

• Basic earnings per share fell to JPY (3.72) from JPY 1.49 year-over-year.

Outlook and guidance

• Full-year sales and profit forecasts remain unchanged, with anticipated higher advertising investment from Q2 onward.

• Full-year net sales forecast for 2025 is JPY 48,000 million, up 0.8% year-over-year, with operating profit expected to rise 298.8% to JPY 1,200 million.

• Progress rates: 25% of sales, 31% of adjusted EBITDA, and 52% of operating profit achieved for the year.

• No dividend is planned for the fiscal year ending December 31, 2025.