Euglena (2931) Q3 2025 earnings summary

Executive summary

• Sales increased 5.1% year-over-year for Q1–Q3 FY2025 to ¥37,086 million, driven by strong healthcare business performance and group-wide profitability initiatives.

• Adjusted EBITDA rose 68.1% year-over-year to ¥5,457 million, with operating profit up 16x to ¥2,618 million, reflecting improved margins and cost reductions.

• Healthcare brands like Euglena for Healthcare, epo, and CONC saw robust subscriber and sales growth.

• Biofuel business advanced with commercial plant construction and rising market prices due to regulatory mandates.

• Loss attributable to owners of parent narrowed to ¥380 million from ¥1,048 million in the prior year period.

Financial highlights

• Q1–Q3 FY2025 sales: ¥37,086 million (+5.1% YoY); Adjusted EBITDA: ¥5,457 million (+68.1% YoY); Operating profit: ¥2,618 million (16x YoY).

• Gross profit margin held steady at 70–73% for the group and 73% for healthcare.

• Gross profit increased to ¥25,865 million from ¥24,657 million YoY, while SG&A expenses decreased to ¥23,246 million from ¥24,497 million.

• Net profit turned positive in Q3 FY2025 after prior losses.

• Equity-to-asset ratio rose to 44.4% from 43.3% at year-end.

Outlook and guidance

• FY2025 full-year Adjusted EBITDA forecast revised upward to ¥7,000 million (+13% from prior), and operating profit to ¥3,200 million (+33%).

• Revenue forecast maintained at ¥50,000 million, up 5.0% YoY.

• Healthcare expected to outperform, while biofuel lags slightly.

• Adjusted EBITDA is highlighted as a key cash flow metric, including subsidy income and stock-related compensation.