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

About this update from Fermentalg Sa

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. [1] Pierre Josselin, CEO of Fermentalg, says: " One year after launching our company transformation plan, [2] 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 ?rigins TM /Everzure TM [3] 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. 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). Analysis of the income statement (in K€) 2023 2024 Turnover 4 058 11 497 Operating result before payment in shares 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 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. Perspectives As announced on February 6th [4] , 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           Contact for journalists: Investor relations: ACTUS finance and communication Fatou-Kiné N'DIAYE Phone: +33 (0)1 53 67 36 34 [email protected] ACTUS finance and communication Jérôme FABREGUETTES LEIB Phone: +33 (0)1 53 67 36 78 [email protected] Appendices STATEMENT OF COMPREHENSIVE INCOME (in thousands of euros)   31/12/24 31/12/23 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-recurring items   -9 100 -10 907 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-current items   -9 220 -11 808 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, not reclassified to profit or loss)   37 52 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 BALANCE SHEET (in thousands of euros)   31/12/24 31/12/23 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 CASH FLOW (in thousands of euros)   31/12/24 31/12/23 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 and before tax   -6 327 -8 655 Stock variation   5 750 -395 Variation in accounts receivable (customer receivables, other assets and liabilities related to customer contracts)   -1 672 266 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 [1] 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. [2] Please refer to the investor presentation from January 26, 2024. [3] Givaudan owns the EverzureTM [4] Press release dated February 6, 2025. This publication embed "🔒 Actusnews SECURITY MASTER ". - SECURITY MASTER Key: lm2bY8WZZ5mVyGtpasmWaWlpl2uSyGGXbmXGnGicasqZnZ9pxpuSaZ3LZnJhmmpo - Check this key: https://www.security-master-key.com . Regulated information: Inside Information: - News release on accounts, results Full and original press release in PDF: https://www.actusnews.com/news/90552-algae_cp_ra_2024_veng.pdf Receive by email the next press releases of the company by registering on www.actusnews.com , it's free © 2025 ActusNews

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