SOURCE: Fermentalg

Fermentalg

September 19, 2014 08:49 ET

2014 Interim Financial Statements: Sales and Industrial Growth Ingredients Are in Place

LIBOURNE, FRANCE--(Marketwired - Sep 19, 2014) - Fermentalg (EURONEXT PARIS: FALG), an industrial biotechnology company that specializes in the production of oils and proteins derived from microalgae, has published its interim financial statements as at 30 June 2014. The statements have been reviewed by the company's Statutory Auditors and were approved by its Board of Directors on 4 September 2014. Fermentalg's interim financial report will be available to the public by 30 September 2014 at the latest.

Fermentalg's exceptional scientific research and development and financial and industrial performance over the first six months of 2014 mean it is now extremely well-equipped to conquer the microalgae market. Key developments over the first half of the year have included:

  • the renegotiation of its non-exclusive agreement with Sofiprotéol, leaving it free to market its first products (essential fatty acids) and sign new partnerships;
  • the launch of the project to build its Industrial Development Unit, which is scheduled for completion by the end of 2015;
  • the filing of a request for approval for its first product, which is the last stage before its sales launch;
  • the implementation of a new organization, which is focused on Business Development and market penetration.

Scientific Research and Development
The first half of 2014 saw Fermentalg consolidate its intellectual property portfolio with the filing of 2 new families of patents. On 30 June 2014, the company had 22 families of patents to its name (25 at present), primarily linked to the state-of-the-art industrial exploitation of microalgae (bred in a predominantly heterotrophic mixotrophic environment).

More recently, the company was granted its 1st active ingredient patent, protecting its technology and strengthening its position as the world's technological leader in its field (see press release dated 10 September 2014).

Fermentalg has also enriched its organization with the appointment of Doctor Hywel Griffiths (PhD) as VP in charge of Research and Development (see press release dated 2 September 2014). Doctor Griffiths has extensive experience of the world of microalgae and was named "Young Biotechnologist of the Year 2013" at the NZBIO annual awards.

Financial position at 30 June 2014
The first half of 2014 was marked by the out-and-out success of Fermentalg's IPO on Euronext in Paris which raised EUR 40.4 million to fund its industrial and commercial development.

On 30 June 2014, the Group's extremely healthy financial position included cash assets of EUR 42.8 million.

Operating income from partnerships, research tax credits and subsidies amounted to EUR 1.1 million in the first half of 2014, up 130% on the first six months of 2013. Operating expenses amounted to EUR 2.6 million, up EUR 1 million on the same period in 2013. These figures reflect a substantial increase in scientific investment (+90% in net R&D costs) and in sales and administrative expenses (+23%).

As a result, current operating income stood at EUR -1.5 million on 30 June 2014 (EUR -1.2 million on 30/06/2013), and operating income including expenses related to share-based payments and other non-current items stood at EUR -2.1 million (EUR -1.3 million one year earlier).

After financial items and its theoretical tax expense, Fermentalg posted a net profit of
 EUR -1.8 million for the first half of 2014 (EUR -0.8 million for the first half of 2013) for equity of EUR 51.0 million.

Industrial development
As announced at the time of its IPO, Fermentalg has decided to commission its own industrial and commercial unit which will handle:

  • the pilot development phases of the different projects to which it is committed;
  • pre-sales production;
  • production for the partnerships that have already been signed.

The initial design of the Industrial Development Unit should enable it to process more than 500 tons of microalgae oil per year (or 1,200 tons of dry matter biomass). The building permit was filed on 14 May 2014 (see press release dated 14 May 2014) and the unit is scheduled to be commissioned at the end of 2015. The investment for this first tranche is estimated at EUR 20 million.

Furthermore, the scalability of the unit which is currently being developed should also enable Fermentalg to meet a significant proportion of its medium-term targets without having to reinvest in new production capacity.

Business development
On 1 July 2014, Fermentalg reinforced its organization to focus more strongly on Business Development. 5 new Business Units have been created whose role will be to use the company's scientific, industrial and corporate resources to cement its economic development with new industrial and commercial partnerships.

In line with the Group's strategic roadmap, the 5 Business Units will focus on the following priority markets:

  • Human nutrition;
  • Animal feed;
  • Cosmetics;
  • Green chemistry;
  • Health.

On the 1st target segment of essential fatty acids for human nutrition (Omega-3 and Omega-6), the market launch of the first molecules by 2015 is taking concrete shape, with Fermentalg applying to market a substantially equivalent Novel Food ingredient last July, and the recent signing of an agreement for the filing of a Novel Food dossier for a new product and new claims.

For Pierre Calleja, Founder and Chairman and CEO of Fermentalg: "It has been an exceptional start to the year for Fermentalg and we now have the technological, financial and industrial resources we needed to seize the myriad of opportunities that lie ahead. As well as the partnerships already signed with the likes of Adisseo, Polaris or Sofiprotéol, the talks underway with other industry operators regarding existing or new products are clear proof of the formidable potential for development on our markets."

About Fermentalg

Founded in 2009 by Pierre Calleja, Fermentalg is an industrial biotechnology company that specializes in producing sustainable oils and proteins derived from the exceptional properties of microalgae. Its patented technology allows it to target a range of fast-growing global markets, from nutrition and animal feed to cosmetics and health, green chemistry and energy. Fermentalg has already signed its 1st industrial and commercial joint-venture for the production of Omega-3 oils rich in EPA and DHA as well as several other partnerships with leading industrial groups. Fermentalg shares are listed on Euronext in Paris (FR0011271600 - FALG). For more information, visit the Fermentalg website at: www.fermentalg.com.

Contact Information

  • Press Relations:

    Fermentalg
    Pierre Calleja
    Chairman and CEO
    Tel: +33 (0)5 57 25 02 20
    Email Contact

    ACTUS finance & communication
    Alexandra Prisa
    Tel: +33 (0)1 53 67 35 79
    Email Contact

    Investor Relations:

    Fermentalg
    Paul Michalet
    Chief Finance, Strategy and Business Officer
    Tel: +33 (0)5 57 25 79 76
    Email Contact

    ACTUS finance & communication
    Jerome Fabreguettes-Leib
    Tel: +33 (0)1 77 35 04 36
    Email Contact