Euglena (2931) Q2 2025 earnings summary

Executive summary

• Operating profit for H1 FY2025 increased eightfold year-over-year to ¥1,636 million, driven by strong revenue growth from major subsidiaries and improved profit structure.

• Net sales for the six months ended June 30, 2025, rose 3.8% year-over-year to ¥24,553 million.

• Adjusted EBITDA increased 65.3% year-over-year to ¥3,507 million, reflecting healthcare pricing, cost-cutting, and a shift to cash flow-oriented management.

• Completed a 15% investment in a Malaysian biorefinery JV and launched a new microalgae-based fertilizer and feed brand.

• Profit attributable to owners of parent was a loss of ¥559 million, impacted by extraordinary losses and tax items.

Financial highlights

• H1 FY2025 sales rose 4% YoY to JPY24.6B, with strong contributions from Qsai and Saticine Medical.

• Gross profit increased to ¥17,148 million from ¥16,434 million year-over-year.

• Operating profit reached JPY1.6B, up 8x YoY, but extraordinary losses and tax items led to a net loss of JPY560M.

• Adjusted EBITDA surged 65% YoY to JPY3.5B.

• Net cash provided by operating activities was ¥1,221 million, up from negative ¥16 million year-over-year.

Outlook and guidance

• Full-year FY2025 forecast revised upward: sales JPY50B, adjusted EBITDA JPY6.2B, operating profit JPY2.4B.

• Operating profit for the full year is projected at ¥2,400 million, a significant increase of 697.7% year-over-year.

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

• Focus on expanding microalgae production and market creation, with "Exploration" and "Exploitation" strategies for the next decade.