Fermentalg (FALG) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached €6.3M, a 2.7-fold increase year-over-year, driven by DHA Origins® sales and new market entries in premium dietary supplements and petfood.

• Net loss for H1 2024 was €-5.7M, nearly unchanged from H1 2023.

• A capital increase of €12.8M was completed in June 2024, with HuvePharma investing €7.5M and Bpifrance €3M, making HuvePharma the largest shareholder with over 20% of capital and voting rights.

• Strategic partnerships with HuvePharma and Givaudan accelerated industrial scale-up, technology transfer, and product innovation.

Financial highlights

• Operating expenses rose to €11.5M in H1 2024, mainly due to higher cost of goods sold and increased commercial/marketing spend.

• Gross margin impacted by higher production and marketing costs, and margin on direct costs temporarily affected by industrial transfer and pricing for new segments.

• Net financial debt at €-7.3M, with cash and equivalents at €21.3M as of June 30, 2024, up €10.1M in six months.

• Equity increased to €39.1M from €30.8M at year-end 2023.

• No corporate income tax due to ongoing losses; deferred tax assets not recognized.

Outlook and guidance

• 2024 revenue target set at €12M, triple 2023 sales, with €9M already secured in orders and contracts by January 2024.

• Focus for H2 2024 on expanding Omega-3 sales, entering new markets, and advancing regulatory approval for Everzure™ blue colorant in the US, with FDA approval expected between late 2024 and early 2025.