Euglena (2931) Q4 2024 earnings summary

Executive summary

• Achieved operating profit for the first time in 7 years, turning profitable a year ahead of plan, with operating profit at ¥300 million compared to a loss of ¥1,464 million in the prior year.

• Net sales increased by 2.4% year-over-year to ¥47,618 million, reaching record highs in FY2024.

• Ordinary profit was ¥431 million, reversing a loss of ¥1,419 million year-over-year.

• Loss attributable to owners of parent narrowed significantly to ¥650 million from ¥2,652 million.

• Completed a 5% investment in a joint venture for biofuel; targeting early increase to 15%.

Financial highlights

• FY2024 sales: JPY47.6 bln (YoY 102%), net sales increased by 2.4% year-over-year to ¥47,618 million.

• Adjusted EBITDA: JPY4.33 bln, up 94.8% year-over-year.

• Operating profit: JPY0.3 bln; ordinary profit: JPY0.43 bln; net loss: JPY0.65 bln.

• Gross profit increased to ¥33,267 million from ¥31,774 million.

• Healthcare sales increased 7% YoY; Adjusted EBITDA up 44% YoY.

Outlook and guidance

• FY2025 targets: sales JPY48 bln, Adjusted EBITDA JPY5 bln, operating profit JPY1.2 bln, and profit attributable to owners of parent of JPY1.2 bln.

• Focus on profit expansion via cost reduction and voluntary retirement program.

• Adjusted EBITDA is projected at JPY5 bln, up 15.5% year-over-year.

• Further profit growth expected from FY2026 onward.