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ER - Annual results 2024: A year combining sales growth, improved results, and preparation of future products.

Company: Fermentalg Date: 2025-03-20 Language: English Register to download
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## Annual results 2024:

# A year combining sales growth, improved results, and preparation of future products.

**Libourne, March 20, 2025 - Fermentalg, a key player in bio-solutions based on aquatic micro-organisms, presents its 2024 financial results after the accounts were approved by the Board of Directors on March 20, 2025 under the chairmanship of Philippe Lavielle[.](#page-0-0)<sup>1</sup>**

Pierre Josselin, CEO of Fermentalg, says: "*One year after launching our company transformation plan, [2](#page-0-1)2024 has clearly seen solid progress towards our goal of becoming a profitable and competitive industrial player by 2026.*

*From a business standpoint, the restructuring of our organization has allowed us to achieve a nearly threefold increase in turnover compared to the previous year. This success is also based on the strategic agreement with Huvepharma, which provides us with an unparalleled industrial base and makes us a credible player, with a financially competitive, environmentally virtuous, and unique offering in Europe. Huvepharma's entry into the company's capital has strengthened a long-term partnership in support of a shared ambition: to ensure a unique European sovereignty in the field of algal omega-3s. In addition, the natural blue dye is ready to be commercialized as soon as the FDA gives final approval. Finally, significant progress in our development programs for the ΩriginsTM/EverzureTM[3](#page-0-2) range allows us to consider expanding our product portfolio for our target markets.*

*In 2025, even though it begins in a climate of global trade war, it must be the year to confirm our new momentum. All the talents of the company are focused on this goal and I am confident in our ability to achieve our ambitions.*

<span id="page-0-0"></span><sup>1</sup> The audit procedures have been completed. The certification report will be issued once the necessary steps for publishing the Universal Registration Document are finalized, no later than April 30, 2025.

<span id="page-0-1"></span><sup>2</sup> Please refer to the investor presentation from January 26, 2024.

<span id="page-0-2"></span><sup>3</sup> Givaudan owns the EverzureTM

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## **Highlights**

The year 2024 laid the groundwork for the profound transformation announced at the beginning of the year, which is reflected in achievements in the following areas:

- Marketing and sales: Fermentalg has completed a record 2024 fiscal year with a turnover of €11.5 million, significantly higher than that of 2023 (€4 million). This performance is driven by the growing success of the Ωrigins™ range, the only 100% algal DHA produced in Europe, known for its high concentration and associated claims, a sustainable alternative to fish oils. The year 2024 has also been marked by the penetration of new market segments, including infant nutrition, supported by a strengthened organization to address key accounts.
- Regulatory: The reception of a letter from the *US Food and Drug Administration (FDA)* by the end of 2024, indicating the ongoing finalization of the review of the food coloring dossier, paves the way to start the commercialization with the Givaudan group, once the final authorization is granted.
- Industrial: Fermentalg is reaping the first benefits of its strategic alliance with the Huvepharma group, with the ability to meet the expectations of large companies in terms of quality and volumes, as well as competitive prices.
- Financially, the business dynamics, combined with improved margins in the second half of the year due to the new industrial setup, as well as the capital increase in June 2024, help to strengthen the Group's financial position and secure its cash flow outlook.
- CSR: Considered a real driver of company performance, the CSR policy has once again been recognized by Ethifinance (overall score of 84/100 and 1st position in the biological chemistry segment) and by EcoVadis (Gold Medal for CSR performance with a position in the top 5% worldwide).

| (in K€)                                                              | 2023    | 2024    |
|----------------------------------------------------------------------|---------|---------|
| Turnover                                                             | 4 058   | 11 497  |
| Operating result before payment in shares<br>and non-recurring items | -10 907 | -9 100  |
| Operating result after payment in shares and non-current items       | -11 808 | -9 220  |
| Cost of net financial debt                                           | -188    | -36     |
| Other financial income and expense                                   | -1 277  | -504    |
| Share of profit in the net income (loss) of associated companies     | -875    | -3 117  |
| Net result                                                           | -14 148 | -12 876 |

### **Analysis of the income statement**

![](_page_2_Picture_0.jpeg)

As announced, Fermentalg saw a significant increase in commercial activity during the 2024 fiscal year, with a nearly threefold increase in revenue to 11.5 million euros, as well as improvements to its industrial operations. This resulted in a gradual improvement in gross margin, from 17% in the first half of 2024 to 22% in the second half, compared to 13% in 2023.

These earnings allowed to offset the 4% increase in operating expenses, reflecting the strengthening of sales teams and marketing actions, and the 9% increase in net research and development expenses, linked to a lower capitalization of these expenses (1.3 M€ vs 2.1 M€), with total R&D expenses recording a decrease of 0.5 M€.

Therefore, the operating result, before payment in shares and non-current items, amounts to -9.1 million euros compared to -10.9 million euros a year earlier.

The net result has also improved, at -12.9 million euros compared to -14.1 million euros in 2023, despite a 3.1 million euros accounting charge, with no impact on cash flow, related to the depreciation of CarbonWorks' fixed assets.

#### **Analysis of the financial structure**

| (in K€)                           | 31/12/2023 | 31/12/2024 |
|-----------------------------------|------------|------------|
| Equity                            | 30 846     | 32 758     |
| Non-current financial liabilities | 13 973     | 6 853      |
| Current financial debts           | 1 381      | 5 748      |
| Cash and cash equivalents         | 11 162     | 20 578     |

By the end of 2024, Fermentalg has a gross cash position of 20.6 million euros, compared to 11.2 million euros a year earlier, with equity of 32.8 million euros.

The significant improvement in the financial position is due to the success of the capital increase of a net amount of €11.8 million carried out in June 2024, which notably saw Huvepharma enter the capital and Bpifrance confirm its financial support for the Company, as well as the optimization of working capital requirements, resulting from the destocking carried out in the first half of 2024 and the favorable conditions negotiated with Huvepharma.

The gross financial debt amounted to €12.6 million at the end of 2024, compared to €15.4 million at the end of 2023, mainly due to the conversion of bonds issued in March 2023 (€2.3 million). It is mainly composed of repayable advances (€6.2 million), the convertible bond held by the Givaudan group (€3.9 million), and the balance of the bonds issued in March 2023 (€1.9 million), of which more than 35% have been converted since January 1, 2025.

To date, the Company believes it has a liquidity horizon beyond 24 months.

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#### **Perspectives**

As announced on February 6th[4](#page-3-0) , Fermentalg is once again aiming for strong growth by 2025 and confirms its ambition to exceed €25 million in revenue by 2026. This ambition is driven by the industrialization of new products, the acquisition of strategic clients in new market segments, geographical expansion, and the optimization of production costs.

Fermentalg is focusing on diversifying its sources of income, controlling gross margins, and stabilizing operational expenses to achieve a break-even Ebitda by the end of 2026, in line with the roadmap.

#### *Next publication: 1st quarter 2025 revenue, on April 1, 2025 (after market close)*

#### **About Fermentalg**

Fermentalg is an expert in the research and industrial exploitation of microalgae, with the goal of offering sustainable solutions and innovative products that contribute to the development of healthy, natural, and high-performance products. Our focus is on the development, production, and commercialization of sustainable solutions and active ingredients derived from microalgae, for nutrition, health, and the environment. Our current and future offerings include nutritional lipids, alternative proteins, natural food colorants, and innovative environmental solutions. Fermentalg is listed on Euronext Growth Paris (FR0011271600 - ALGAE) and is eligible for the PEA-PME. It has received an Exemplary rating (90/100) from EthiFinance ESG Ratings, a specialized rating agency for the ESG performance of SMEs listed on European markets, in support of Socially Responsible Investment (SRI).

For more information: www.fermentalg.com

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**Contact for journalists: Investor relations:** ACTUS finance and communication Fatou-Kiné N'DIAYE Phone: +33 (0)1 53 67 36 34 fndiaye@actus.fr

ACTUS finance and communication Jérôme FABREGUETTES LEIB Phone: +33 (0)1 53 67 36 78 fermentalg@actus.fr

<span id="page-3-0"></span><sup>4</sup> Press release dated February 6, 2025.

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#### **Appendices**

| STATEMENT OF COMPREHENSIVE INCOME                           | 31/12/24 | 31/12/23 |
|-------------------------------------------------------------|----------|----------|
| (in thousands of euros)                                     |          |          |
| Turnover                                                    | 11 497   | 4 058    |
| Other products related to the activity                      | 1 612    | 1 063    |
| Cost of goods sold                                          | -9 002   | -3 522   |
| Research and development expenses                           | -4 792   | -4 414   |
| Operational charges excluding R&D                           | -8 415   | -8 091   |
| Other current operating expenses and charges                | 0        | 0        |
| Operating result before payment in shares and non           | -9 100   | -10 907  |
| recurring items                                             |          |          |
| Personnel expenses related to share-based payments          | -152     | -167     |
| Other non-current operating expenses and charges            | 32       | -734     |
| Operating result after payment in shares and non            | -9 220   | -11 808  |
| current items                                               |          |          |
| Cash and cash equivalents products                          | 404      | 294      |
| Cost of gross financial debt                                | -440     | -482     |
| Cost of net financial debt                                  | -36      | -188     |
| Other products and financial charges                        | -504     | -1 277   |
| Net tax charge                                              | 0        | 0        |
| Share of profit in the net income of associated companies   | -3 117   | -875     |
| Net result                                                  | -12 876  | -14 148  |
| Minority parts                                              | 0        | 0        |
| NET RESULT ATTRIBUTABLE TO THE GROUP                        | -12 876  | -14 148  |
| Other components of the comprehensive income                |          |          |
| (actuarial gains and losses related to retirement benefits, | 37       | 52       |
| not reclassified to profit or loss)                         |          |          |
| NET GLOBAL RESULT                                           | -12 839  | -14 096  |
| Minority parts                                              | 0        | 0        |
| NET GLOBAL RESULT PART OF THE GROUP                         | -12 839  | -14 096  |
| Net income per share (in €)                                 | -0,17    | -0,32    |
| Diluted net earnings per share (in €)                       | -0,17    | -0,32    |

![](_page_5_Picture_0.jpeg)

| BALANCE SHEET                                                       | 31/12/24 | 31/12/23 |
|---------------------------------------------------------------------|----------|----------|
| (in thousands of euros)                                             |          |          |
| ASSETS                                                              |          |          |
| Intangible assets                                                   | 14 862   | 14 989   |
| Tangible assets                                                     | 9 541    | 10 815   |
| Participation in associated companies                               | 0        | 3 117    |
| Financial assets and other non-current assets                       | 67       | 54       |
| Deferred tax assets                                                 | 0        | 0        |
| TOTAL NON-CURRENT ASSETS                                            | 24 470   | 28 975   |
| Stocks                                                              | 1 056    | 6 806    |
| Customer receivables and other assets related to customer contracts | 2 750    | 1 078    |
| Other receivables                                                   | 2 101    | 2 223    |
| Cash and cash equivalents                                           | 20 578   | 11 162   |
| TOTAL CURRENT ASSETS                                                | 26 485   | 21 269   |
| TOTAL ASSETS                                                        | 50 955   | 50 244   |
| LIABILITIES                                                         | 51 641   | 50 244   |
| Capital                                                             | 3 625    | 2 052    |
| Primes                                                              | 38 763   | 37 810   |
| Reserves and RAN                                                    | 3 209    | 5 080    |
| Total net result                                                    | -12 839  | -14 096  |
| Equity share of the group                                           | 32 758   | 30 846   |
| Minority interests                                                  | 0        | 0        |
| TOTAL EQUITY                                                        | 32 758   | 30 846   |
| Non-current financial liabilities                                   | 6 853    | 13 973   |
| End of career commitments                                           | 312      | 282      |
| Other non-current liabilities                                       | 565      | 681      |
| Deferred tax liabilities                                            | 0        | 0        |
| TOTAL NON-CURRENT LIABILITIES                                       | 7 729    | 14 936   |
| Current financial debts                                             | 5 748    | 1 381    |
| Provisions for current risks                                        | 0        | 176      |
| Supplier debts                                                      | 2 626    | 1 436    |
| Debts of corporate taxes                                            | 0        | 0        |
| Other current liabilities                                           | 2 096    | 1 469    |
| TOTAL CURRENT LIABILITIES                                           | 10 469   | 4 462    |
| TOTAL LIABILITIES                                                   | 50 955   | 50 244   |

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| CASH FLOW                                                                             | 31/12/24 | 31/12/23 |
|---------------------------------------------------------------------------------------|----------|----------|
| (in thousands of euros)                                                               |          |          |
| Net profit attributable to the group                                                  | -12 876  | -14 148  |
| Depreciation and provisions (excluding current assets)                                | 2 551    | 3 155    |
| Charges calculated on share-based payments                                            | 152      | 167      |
| Equity-accounted investees                                                            | 3 117    | 875      |
| Capital gains or losses from sales                                                    | 4        | 2        |
| Quote-part subsidies in results                                                       | -116     | -237     |
| Variation in fair value of OCA                                                        | 403      | 1 049    |
| Self-financing capacity                                                               | -6 766   | -9 138   |
| Cost of gross financial debt                                                          | 440      | 482      |
| Tax charges                                                                           | 0        | 0        |
| Self-financing capacity before cost of financial debt                                 | -6 327   | -8 655   |
| and before tax                                                                        |          |          |
| Stock variation                                                                       | 5 750    | -395     |
| Variation in accounts receivable (customer receivables, other assets and liabilities  | -1 672   | 266      |
| related to customer contracts)                                                        |          |          |
| Variation in supplier and related accounts position                                   | 1 114    | -93      |
| Variation in other current assets and liabilities (a)                                 | 604      | 215      |
| Variation in working capital needs related to business activity                       | 5 796    | -7       |
| NET CASH FLOWS FROM OPERATING ACTIVITIES                                              | -530     | -8 662   |
| Production of fixed assets (capitalized R&D)                                          | -822     | -1 952   |
| Quote share of subsidies and R&D tax credit related to activated development projects | 224      | 461      |
| Acquisition of other tangible and intangible assets                                   | -647     | -472     |
| Participation or acquisition of associated companies (MEQ)                            | 0        | 0        |
| Variation in long-term debts                                                          | 106      | -63      |
| Variation of other non-current assets and liabilities                                 | -13      | 247      |
| Transfers of tangible and intangible assets                                           | 23       | 15       |
| Asset Transfers                                                                       | 0        | 0        |
| NET CASH FLOWS FROM INVESTMENT ACTIVITIES                                             | -1 128   | -1 765   |
| Capital increase related to the parent company                                        | 11 521   | 73       |
| Acquisitions and disposals of own shares                                              | 14       | -22      |
| New loans and other financial debts                                                   | 731      | 6 412    |
| Repayment of loans and other financial debts                                          | -1 171   | -750     |
| Variation of current accounts                                                         | 0        | 0        |
| Interest paid on loans and financial debts                                            | -18      | -26      |
| NET CASH FLOWS RELATED TO FINANCING OPERATIONS                                        | 11 076   | 5 686    |
| Cash variation                                                                        | 9 418    | -4 741   |
| Opening cash                                                                          | 11 162   | 15 902   |
| Closing cash balance                                                                  | 20 580   | 11 162   |