Euglena (2931) Q3 2024 earnings summary

Executive summary

• Sales reached JPY35.3 bln in FY2024 Q3, up 3.5% YoY, achieving 73% of the annual forecast.

• Adjusted EBITDA rose 64% YoY to JPY3.25 bln, achieving 85% of the annual target.

• Operating income turned positive at JPY0.16 bln, up from a loss of JPY0.96 bln YoY.

• Net income remained negative, impacted by reduced biofuel subsidies and extraordinary losses from divestments, but improved YoY.

• Ordinary loss narrowed significantly to JPY31 mln from JPY797 mln YoY.

Financial highlights

• Gross margin improved to 69.9% from 69.0% YoY.

• Net loss attributable to owners was JPY1.05 bln, an improvement of JPY0.22 bln YoY.

• Gross profit increased slightly to JPY10.62 bln from JPY10.58 bln YoY.

• Comprehensive income loss improved to JPY908 mln from JPY1.25 bln YoY.

• Earnings per share improved to JPY(7.85) from JPY(10.86) YoY.

Outlook and guidance

• Annual sales and Adjusted EBITDA forecasts remain at JPY48 bln and JPY3.8 bln, respectively.

• Full-year operating profit and ordinary profit projected at JPY3.8 bln, with profit attributable to owners at JPY2.7 bln.

• Q4 is expected to see increased ad investment, possibly leading to an operating loss, but full-year profitability is possible depending on ad spend and OEM transactions.

• No revision to previously announced financial results forecast.