Libourne – 29 March 2017 – Fermentalg, an industrial biotechnology company that specializes in the production of oils, proteins and pigments derived from microalgae, has published its results for financial year 2016. Its Board of Directors, which met on 8 March 2017 under Chairman Philippe Lavielle, has approved the Group's accounts as at 31 December 2016. The financial statements have been audited in full and the yearly financial report will be available to the public no later than 30 April 2017.

Primary development strategies

2016 saw Fermentalg focus its resources on its priority short- and medium-term programs (1 to 3 years), including:

  • the industrialization and commercialization of Omega-3 algal oil, DHA350;
  • the industrialization and commercialization of concentrated Omega-3 algal oil, DHA550;
  • the development of processes and the industrialization of a natural blue pigment for food derived from Phycocyanine;
  • the development of processes and the industrialization of an antioxidant algal protein for human nutrition and animal feed.

The company also decided to pursue its partnership with the SUEZ Group linked to the development of urban and industrial carbon sinks designed to purify the surrounding atmosphere through the capture of carbon dioxide (CO2) and other pollutant particles.

Lastly, Fermentalg has also continued with its research on Astaxanthin, a natural red pigment for use in nutrition and cosmetics, and with its collaborative program with Adisseo linked to animal feed.

Adapting resources to roadmap

Fermentalg's operating income (revenue and research tax credit, subsidies) amounted to €0.7 million for 2016.

In line with the Group's strategic roadmap and budget, the number of employees assigned to R&D went from 46 in December 2015 to 37 in December 2016. Fermentalg had 20 families of patents at end-2016, including 2 new patents registered during the year. Taking into account the development partnerships signed by the company in 2016, the global R&D budget remained stable at €5.0 million.

Administrative and sales expenses assigned to structuring the company and preparing for its industrial and commercial development also remained stable at €4.3 million for the year.

As a result, current operating income [1] stood at -€6.2 million (-€5.7 million in 2015). After other operating expenses (€1.6 million primarily linked to the Group's strategic repositioning) and net cash proceeds (€0.3 million as against €0.5 million in 2015), net income amounted to -€7.6 million in 2015 compared with -€5.3 million in 2015.

Cash assets of €15.7 million at the end of 2016

After industrial investments of €5.3 million in the Libourne site and €1.5 million in the partner factory in Pomacle, equity amounted to €36.6 million for a gross cash position of €15.7 million on 31 December 2016 (€28.5 million on 31 December 2015). Financial debt consisted of €3.3 million in repayable advances on Fermentalg's innovation programs, leaving the Group with what it considers to be sufficient cash assets to finance its development plan in 2017. Fermentalg is already working on various financing solutions to accompany its industrial and commercial development.

Outlook: industrial and commercial launch of DHA350

2017 should see the actual industrial and commercial launch of DHA350. The priorities for the beginning of the year focus on:

  • the setting up of a sales team to be headed up by the new Sales Director;
  • the issue of samples to distributors and industrial operators from the agrifood industry to enable them to test and validate products;
  • the perfectioning of the production process at the Pomacle site.

In line with the calendar presented at the start of 2016, Fermentalg also intends to finalize the development and large-scale production of concentrated Omega-3 oil, DHA550. The preindustrial and regulatory developments needed upstream of the market launch of the antioxidant food protein and Phycocyanine will also be priorities in 2017.

About Fermentalg

Based in Libourne (Gironde), Fermentalg is an industrial biotechnology company and a global leader in the production of oils, proteins and pigments derived from the fermentation of microalgae. Its primary markets are the food and feed markets. Fermentalg shares are listed on Euronext in Paris (FR0011271600 – FALG). For more information, visit the Fermentalg website at: www.fermentalg.com.

 
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ACTUS finance & communication
Alexandra Prisa
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ACTUS finance & communication
Jérôme Fabreguettes-Leib
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jfl@actus.fr

Comprehensive income statement

(€ thousands)31/12/1631/12/15
Revenue137479
Other income from operations5681,185
Production costs-1330
Research and Development expenses-2,566-3,096
Administrative and sales expenses-4,250-4,236
Operating income before share-based payments and non-current items-6,244-5,668
Payroll expenses linked to share-based payments138-117
Other non-current operating income and expenses-1,594-50
Operating income-7,700-5,836
Income from cash and cash equivalents328581
Cost of gross financial debt-70-56
Cost of net financial debt258525
Other financial income and expenses-6116
Net tax expense-670
Consolidated net income-7,570-5,295
Minority interests116
GLOBAL CONSOLIDATED NET INCOME (GROUP SHARE)-7,559-5,288
Consolidated net earnings per share (in euros)-0.63-0.44
Consolidated diluted net earnings per share (in euros)-0.62-0.43

Balance sheet

(€ thousands)31/12/1631/12/15
ASSETS  
Goodwill00
Intangible assets6,0204,241
Tangible assets17,61312,455
Non-current financial assets140351
Deferred tax assets3,2363,302
TOTAL NON-CURRENT ASSETS27,00920,349
Inventories5580
Client receivables7516
Corporate income tax receivables015
Other non-financial current assets2,8143,969
Cash and cash equivalents15,70728,506
TOTAL CURRENT ASSETS19,08633,006
TOTAL ASSETS46,09553,355
LIABILITIES  
Capital484484
Premiums50,28956,632
Reserves and retained earnings-6,582-7,466
Global net income-7,559-5,287
Shareholders' equity (Group share)36,63244,362
Minority interests-4317
TOTAL SHAREHOLDERS' EQUITY36,58944,380
Financial debt3,3482,902
Retirement commitments6456
Provisions for non-current risks0300
TOTAL NON-CURRENT LIABILITIES3,4123,258
Bank overdrafts0900
Provisions for current risks5900
Supplier debt3,1751,881
Other current liabilities2,3292,936
TOTAL CURRENT LIABILITIES6,0945,717
TOTAL LIABILITIES46,09553,355

Cash flow statement

(€ thousands)31/12/1631/12/15
Global net income-7,570-5,295
Depreciation, amortization and provisions (excluding provisions against current assets)1,840992
Expenses on share-based payments-138117
Change in deferred tax660
Gains and losses on disposals2350
Cash flow-5,567-4,186
Cost of gross financial debt7056
Cash flow before cost of financial debt,
net of tax
-5,497-4,130
Tax150
Change in consumables-37312
Change in client receivables509-486
Change in supplier payables1,1651,078
Change in other current assets and liabilities (a)712-279
Change in working capital requirement linked to operations2,028325
NET CASH FLOW LINKED TO OPERATIONS-3,469-3,805
Production of fixed assets (capitalized R&D)-2,460-2,039
Share of subsidies and research tax credit linked to development projects underway595739
Acquisitions of other tangible and intangible assets-6,849-8,407
Change in fixed asset liabilities-304-264
Acquisitions of financial fixed assets0-1
Disposals of other tangible and intangible assets05
Disposals of financial assets2114
Cash linked to the acquisition and disposal of subsidiaries00
NET CASH FLOW LINKED TO INVESTMENTS-8,807-9,963
Capital increase linked to parent company0727
Capital increase reserved for employees049
Acquisitions and disposals of own shares-7-8
New borrowings and other financial debt332889
Change in current accounts51-54
NET CASH FLOW LINKED TO FINANCING3761,603
Change in cash-11,899-12,165
Opening cash (1)27,60739,772
Closing cash (1)15,70827,607
(a) o/w change in research tax credit:1,312-1,347

*: in 2015, €185,000 in inventory consumables was reported under non-financial currents assets.

 


[1] Operating income before share-based payments


Regulated information
News releases under ongoing reporting obligations:
– News release on accounts, results


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FERMENTALG : 2016 results

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