Euglena Co., Ltd. (2931): FY2025 Results Summary — Record Sales and a Tenfold Increase in Operating Profit

This article is based on publicly available IR materials and is not a recommendation to buy or sell any specific securities.

Euglena Co., Ltd. reported record-high net sales of ¥50,370 million for FY2025 (the fiscal year ended December 31, 2025), with operating profit of ¥3,123 million, described in the materials as more than a tenfold year-on-year increase. Adjusted EBITDA rose 1.6x year on year to ¥6,939 million, which the company attributes to a two-year profit structure reform. Net loss attributable to owners of parent was ¥806 million. In light of the improvement in business performance and financial position, the company plans to pay a first-ever 20th anniversary special dividend of ¥2 per share.

Consolidated Results (Full-Year Actual)

Net sales reached a record high, led by the Healthcare Business, which achieved organic growth including D2C sales in addition to M&A contributions. The materials note that sales exceeded the earnings forecast on increased advertising investment in Q4, while Adjusted EBITDA fell slightly short of the forecast due to increased advertising investment and higher bonuses reflecting strong performance results.

Item (JPY million)	FY2025	FY2024
Sales	50,370	47,619
Cost of sales	15,337	14,351
Gross profit	35,034	33,268
Gross profit rate	70%	70%
SG&A expenses	31,910	32,967
(o/w advertising expenses)	11,125	10,825
Operating income/loss	3,123	301
Adjusted EBITDA	6,939	4,330
Ordinary income/loss	2,366	432
Extraordinary income/loss	-476	-737
Net income/loss attributable to owners of parent	-806	-651

Adjusted EBITDA is the company’s own financial measure, defined in the materials as EBITDA (operating income + goodwill amortization and depreciation) + subsidy income + stock-related compensation. Figures in the presentation are rounded to the nearest JPY million and may differ from those in the financial statements.

Segment Results

The Healthcare Business drove both sales and profit growth. Biofuel Business sales grew on steady expansion in feedstock trading and domestic sales, while the Biofuel Business and Other Business remained in negative Adjusted EBITDA. Corporate costs narrowed year on year.

Segment	Metric (JPY million)	FY2025	FY2024
Healthcare Business	Sales	47,021	44,348
Healthcare Business	Adjusted EBITDA	8,865	6,568
Healthcare Business	EBITDA margin	19%	15%
Biofuel Business	Sales	1,092	934
Biofuel Business	Adjusted EBITDA	-317	-425
Other Business	Sales	2,299	2,348
Other Business	Adjusted EBITDA	-402	-415
Corporate	Adjusted EBITDA	-1,207	-1,398
Consolidated Total	Sales	50,370	47,619
Consolidated Total	Adjusted EBITDA	6,939	4,330

Healthcare Business Breakdown

Within the Healthcare Business, Saticine Medical group posted the largest increase, reflecting a full-year consolidated contribution from its FY2024 Q2 consolidation together with organic growth in orders. Q’sai group expanded on both direct sales and wholesale, while MEJ declined. The materials state that FY2025 Healthcare sales of ¥47B broke down into Direct Sales 72%, OEM etc. 18% and Wholesale 9%.

Company	Metric (JPY million)	FY2025	FY2024
Euglena Healthcare	Sales	8,996	8,613
Euglena Healthcare	Adjusted EBITDA	1,294	871
epauler	Sales	3,613	3,540
epauler	Adjusted EBITDA	353	262
MEJ	Sales	891	1,114
MEJ	Adjusted EBITDA	83	129
Q’sai group	Sales	26,651	25,596
Q’sai group	Adjusted EBITDA	6,051	4,541
Saticine Medical group	Sales	7,443	4,548
Saticine Medical group	Adjusted EBITDA	1,109	672

FY2026 Forecast

For FY2026 the company forecasts sales of ¥52,000 million and Adjusted EBITDA of ¥7,000 million, maintaining profitability while initiating growth investments. Operating profit is expected to remain broadly flat at ¥3,200 million, while ordinary profit is forecast to increase to ¥2,800 million following the elimination of temporary cost. The company aims to achieve positive net income attributable to owners of parent in FY2026 for the first time in nine fiscal periods, but does not disclose a specific figure because a reasonable estimate is difficult.

Item (JPY million)	FY2026 (Forecast)	FY2025 (Actual)
Sales	52,000	50,370
Adjusted EBITDA	7,000	6,939
Operating profit	3,200	3,123
Ordinary profit	2,800	2,366
Net income attributable to owners of parent	Specific forecast figures are not disclosed	-806

Shareholder Returns

The company will pay a first-ever 20th anniversary special dividend of ¥2 per share, funded from other capital surplus, subject to approval of the relevant proposals at the Annual General Meeting of Shareholders scheduled for March 24, 2026. The materials note that ¥13B of capital reserves is used to secure distributable profits after returning to profitability, and that a dividend for investment recovery was received by Euglena (¥4B) following strong performance at the Qsai group. The future shareholder return policy remains undecided and will be reviewed based on business performance, financial condition and investment plans.

Mid-Term Business Outlook

The company set 2030 Goals of sales at a ¥100B-size and Adjusted EBITDA at a ¥16B-level, with an illustrative FY2028 image of ¥55-60B in sales and ¥8-9B in Adjusted EBITDA. The roadmap is built on “Biomass 5F” and “Ambidexterity” strategies, deepening existing domains while exploring four microalgae-based new domains: healthcare overseas expansion, the CKD disease area, algal oil development and agri-business.

In the Biofuel Business, the 15% investment in the Malaysia joint venture was finalized in July 2025, allowing the company to handle approximately 100 ML per annum of biofuel. A groundbreaking ceremony was held in November 2025 for the plant to be constructed in PETRONAS’s Pengerang Integrated Complex, with a project size of approximately $1.3B and operations targeted by the second half of FY2028. The plant is to have production capacity of approximately 725 ML/year.

Company Overview

Euglena Co., Ltd. was founded on August 9, 2005 and is listed on the Prime Market of the Tokyo Stock Exchange under ticker 2931. As of the end of December 2025 the company had capital stock of ¥16,373M, 1,042 consolidated employees, 15 consolidated subsidiaries including 4 Qsai group companies and 1 overseas joint venture, and 112,085 shareholders.

This article is an analysis based on publicly available information and is not a recommendation to buy or sell any specific securities. Investment decisions are your own responsibility.