Fermentalg (FALG) H2 2024 earnings summary

Executive summary

• Achieved nearly threefold revenue growth in 2024, reaching €11.5 million, driven by the Origins™ range and new market segments such as infant nutrition.

• Strategic partnership with Huvepharma enhanced industrial capacity and competitiveness; Huvepharma also became a shareholder.

• Natural blue dye product ready for commercialization pending FDA approval; progress in expanding product portfolio with Origins™/Everzure™.

• Recognized for CSR excellence, ranking first in biological chemistry by Ethifinance and receiving a Gold Medal from EcoVadis.

Financial highlights

• Revenue rose to €11.5 million in 2024 from €4.1 million in 2023, mainly due to strong Origins™ sales.

• Gross margin improved from 13% in 2023 to 17% in H1 2024 and 22% in H2 2024.

• Operating result before share-based payments and non-recurring items improved to -€9.1 million from -€10.9 million year-over-year.

• Net result improved to -€12.9 million from -€14.1 million in 2023, despite a €3.1 million non-cash charge for CarbonWorks asset depreciation.

• Diluted net earnings per share improved to -€0.17 from -€0.32 year-over-year.

Outlook and guidance

• Targeting strong growth in 2025 and aiming to exceed €25 million in revenue by 2026.

• Focused on diversifying income, controlling gross margins, and stabilizing operational expenses to achieve break-even EBITDA by end of 2026.