Interim report
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DISCLAIMER : This document has been translated from a part of the Japanese original for reference purposes only . In the event of any discrepancy between this translated document and the Japanese original , the original shall prevail . Consolidated Financial Results for the Six Months Ended June 30 , 2026 ( Under Japanese GAAP ) Company name : Listing : Euglena Co. , Ltd. Tokyo Stock Exchange Securities code : 2931 URL : http://www.euglena.jp/ Representative : Inquiries : Telephone : Mitsuru Izumo , Representative Director , President Tomohiro Wakahara , Director , Representative Executive Officer , Co - CEO & Finance Officer + 81-3-3453-4907 Scheduled date to file semi - annual securities report : Scheduled date to commence dividend payments : Preparation of supplementary material on financial results : Holding of financial results meeting : August 7 , 2026 - Yes Yes ( for analysts and institutional investors ) August 7 , 2026 ( Yen amounts are rounded down to millions , unless otherwise noted . ) 1. Consolidated financial results for the six months ended June 30 , 2026 ( from January 1 , 2026 to June 30 , 2026 ) ( 1 ) Consolidated operating results ( cumulative ) Net sales Adjusted EBITDA Operating profit Ordinary profit ( Percentages indicate year - on - year changes . ) Profit attributable to owners of parent Six months ended Millions of yen % Millions of yen % Millions of yen % Millions of yen % Millions of yen % June 30 , 2026 26,507 8.0 3,804 8.5 1,871 14.3 1,709 45.8 73 June 30 , 2025 24,553 3.8 3,507 65.3 Note : Comprehensive income For the six months ended June 30 , 2026 : For the six months ended June 30 , 2025 : Basic earnings per share 1,636 ¥ 1,189 million ¥ ( 507 ) million 716.3 1,172 625.7 ( 559 ) [ - % ] [ - % ] Diluted earnings per share Six months ended June 30 , 2026 Yen Yen 0.52 June 30 , 2025 0.53 ( 4.10 ) * From the perspective of shifting to cash flow - oriented management , we disclose Adjusted EBITDA as an indicator of the Company's ability to generate cash flow . For a definition of Adjusted EBITDA and how it is calculated , see 3. Consolidated Financial Forecast for the fiscal year ending December 31 , 2026 ( January 1 , 2026 ~ December 31 , 2026 ) ( 2 ) Consolidated financial position As of June 30 , 2026 December 31 , 2025 Reference : Equity Total assets Millions of yen 69,272 72,332 As of June 30 , 2026 : As of December 31 , 2025 : ¥ 33,115 million ¥ 30,919 million 2 . Cash dividends First quarter - end Second quarter - end Yen Yen 0.00 Net assets Equity - to - asset ratio Millions of yen % 31,569 47.8 42.7 28,526 Annual dividends per share Third quarter - end Fiscal year - end Total Yen Yen Yen 2.00 2.00 Fiscal year ended December 31 , 2025 Fiscal year ending December 31 , 2026 Fiscal year ending December 31 , 2026 ( Forecast ) Note : Revisions to the forecast of cash dividends most recently announced : None 0.00 0.00 3. Forecast of consolidated financial results for the fiscal year ending December 31 , 2026 ( from January 1 , 2026 to December 31 , 2026 ) Net sales Adjusted EBITDA Operating profit Ordinary profit Millions of yen % Millions of yen % Millions of yen % Millions of yen % 0.00 ( Percentages indicate year - on - year changes . ) Profit attributable to Basic earnings per owners of parent Yen % share Yen
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Fiscal year ending December 31, 2026 53,000 5.2 7,000 0.9 3,200 2.5 2,800 18.4 - - - Note: Revisions to the earnings forecasts most recently announced: Yes Reference: Adjusted EBITDA is calculated as EBITDA (operating profit + depreciation and amortization, including amortization of goodwill) + subsidy income + stock-related compensation.
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* Notes (1) Significant changes in the scope of consolidation during the period: None (2) Adoption of accounting treatment specific to the preparation of semi-annual consolidated financial statements: None (3) Changes in accounting policies, changes in accounting estimates, and restatement (i) Changes in accounting policies due to revisions to accounting standards and other regulations: None (ii) Changes in accounting policies due to other reasons: None (iii) Changes in accounting estimates: None (iv) Restatement: None (4) Number of issued shares (common shares) (i) Total number of issued shares at the end of the period (including treasury shares) As of June 30, 2026 139,521,762 shares As of December 31, 2025 136,599,260 shares (ii) Number of treasury shares at the end of the period As of June 30, 2026 20,918 shares As of December 31, 2025 20,822 shares (iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year) Six months ended June 30, 2026 139,001,367 shares Six months ended June 30, 2025 136,421,223 shares * Semi-annual financial results reports are exempt from review conducted by certified public accountants or an audit firm. * Proper use of earnings forecasts, and other special matters The forward-looking statements, including forecasts of financial results, contained in these materials are based on information currently available to the Company and on certain assumptions deemed to be reasonable. However, the Company makes no guarantee that these forecasts will be achieved. Actual financial results, etc. may differ substantially due to various factors.
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Semi-annual consolidated balance sheet (Millions of yen) As of December 31, 2025 As of June 30, 2026 Assets Current assets Cash and deposits 21,163 17,174 Notes and accounts receivable - trade 5,043 4,807 Merchandise and finished goods 2,237 2,496 Work in process 332 295 Raw materials and supplies 1,608 1,692 Other 3,241 4,634 Allowance for doubtful accounts (188) (152) Total current assets 33,437 30,948 Non-current assets Property, plant and equipment Buildings and structures 7,587 7,541 Machinery, equipment and vehicles 3,923 3,941 Tools, furniture and fixtures 1,057 1,005 Land 1,912 1,912 Leased assets 81 79 Construction in progress 9 10 Other 24 30 Accumulated depreciation (8,845) (8,882) Total property, plant and equipment 5,750 5,639 Intangible assets Goodwill 11,107 10,823 Customer-related intangible assets 18,310 17,490 Other 1,546 1,707 Total intangible assets 30,964 30,022 Investments and other assets Investment securities 1,523 2,093 Guarantee deposits 443 441 Deferred tax assets 106 81 Other 158 101 Allowance for doubtful accounts (52) (56) Total investments and other assets 2,179 2,662 Total non-current assets 38,894 38,323 Total assets 72,332 69,272
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(Millions of yen) As of December 31, 2025 As of June 30, 2026 Liabilities Current liabilities Notes and accounts payable - trade 1,882 1,834 Short-term borrowings 3,938 17,058 Accounts payable - other 3,518 3,308 Contract liabilities 1,367 1,321 Lease liabilities 10 12 Income taxes payable 1,635 1,042 Provision for bonuses 660 331 Asset retirement obligations 21 - Other 943 796 Total current liabilities 13,978 25,707 Non-current liabilities Bonds payable 1,000 1,000 Convertible-bond-type bonds with share acquisition rights 4,800 2,800 Long-term borrowings 17,916 2,178 Lease liabilities 16 13 Provision for retirement benefits for directors (and other officers) 6 7 Retirement benefit liability 440 442 Asset retirement obligations 164 164 Deferred tax liabilities 5,480 5,387 Other 2 1 Total non-current liabilities 29,827 11,996 Total liabilities 43,805 37,703 Net assets Shareholders' equity Share capital 16,373 17,423 Capital surplus 16,924 14,121 Retained earnings (3,066) 587 Treasury shares (34) (34) Total shareholders' equity 30,196 32,097 Accumulated other comprehensive income Valuation difference on available-for-sale securities 14 18 Deferred gains or losses on hedges (0) (3) Foreign currency translation adjustment 710 1,000 Remeasurements of defined benefit plans (2) 2 Total accumulated other comprehensive income 722 1,017 Share acquisition rights 39 65 Non-controlling interests (2,431) (1,611) Total net assets 28,526 31,569 Total liabilities and net assets 72,332 69,272
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Semi-annual consolidated statement of income (Millions of yen) Six months ended June 30, 2025 Six months ended June 30, 2026 Net sales 24,553 26,507 Cost of sales 7,404 8,170 Gross profit 17,148 18,336 Selling, general and administrative expenses 15,512 16,465 Operating profit 1,636 1,871 Non-operating income Interest income 34 69 Foreign exchange gains - 1 Subsidy income 26 115 Commission income 28 31 Share of profit of entities accounted for using equity method 1 - Other 55 42 Total non-operating income 146 261 Non-operating expenses Interest expenses on bonds 7 6 Interest expenses 231 304 Commission expenses 193 62 Foreign exchange losses 121 - Share of loss of entities accounted for using equity method - 21 Other 57 28 Total non-operating expenses 610 423 Ordinary profit 1,172 1,709 Extraordinary income Gain on reversal of share acquisition rights 0 0 Gain on sale of non-current assets 2 1 Total extraordinary income 2 1 Extraordinary losses Loss on valuation of investment securities - 0 Business restructuring expenses 265 - Total extraordinary losses 265 0 Profit before income taxes 909 1,709 Income taxes - current 860 896 Income taxes - deferred (84) (74) Total income taxes 775 821 Profit 133 888 Profit attributable to non-controlling interests 692 814 Profit (loss) attributable to owners of parent (559) 73
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Semi-annual consolidated statement of comprehensive income (Millions of yen) Six months ended June 30, 2025 Six months ended June 30, 2026 Profit 133 888 Other comprehensive income Valuation difference on available-for-sale securities 3 4 Deferred gains or losses on hedges (0) (3) Foreign currency translation adjustment (642) 289 Remeasurements of defined benefit plans, net of tax (1) 10 Total other comprehensive income (641) 301 Comprehensive income (507) 1,189 Comprehensive income attributable to Comprehensive income attributable to owners of parent (1,207) 369 Comprehensive income attributable to non-controlling interests 699 819
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Semi-annual consolidated statement of cash flows (Millions of yen) Six months ended June 30, 2025 Six months ended June 30, 2026 Cash flows from operating activities Profit before income taxes 909 1,709 Depreciation 1,185 1,207 Amortization of goodwill 477 421 Business restructuring expenses 265 - Share-based payment expenses 184 192 Loss (gain) on valuation of investment securities - 0 Loss (gain) on sale of property, plant and equipment (2) (1) Increase (decrease) in allowance for doubtful accounts 0 (32) Increase (decrease) in provision for bonuses (161) (326) Increase (decrease) in provision for retirement benefits and retirement benefits for directors (and other officers) 21 18 Interest and dividend income (34) (69) Subsidy income (26) (115) Gain on reversal of share acquisition rights (0) (0) Interest expenses 231 304 Interest expenses on bonds 7 6 Foreign exchange losses (gains) (19) 15 Share of loss (profit) of entities accounted for using equity method (1) 21 Decrease (increase) in trade receivables (146) 232 Decrease (increase) in inventories (639) (284) Increase (decrease) in trade payables 264 (48) Increase (decrease) in accounts payable - other (341) (190) Increase/decrease in consumption taxes payable/consumption taxes refund receivable (139) (86) Other, net 112 (345) Subtotal 2,147 2,629 Interest and dividends received 34 69 Interest paid (239) (320) Subsidies received 26 113 Payments for business restructuring expenses (247) - Income taxes refund 246 39 Income taxes paid (745) (1,446) Net cash provided by (used in) operating activities 1,221 1,083
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(Millions of yen) Six months ended June 30, 2025 Six months ended June 30, 2026 Cash flows from investing activities Decrease (increase) in time deposits (2) 1,643 Purchase of property, plant and equipment (107) (118) Proceeds from sale of property, plant and equipment 4 1 Purchase of intangible assets (134) (288) Payments for acquisition of businesses - (250) Purchase of investment securities - (548) Proceeds from sale and redemption of investment securities - 3 Decrease (increase) in short-term loans receivable (255) (1,097) Proceeds from collection of long-term loans receivable 973 - Proceeds from refund of guarantee deposits 65 5 Payments of guarantee deposits (27) (4) Payments for asset retirement obligations (2) (21) Net cash provided by (used in) investing activities 514 (674) Cash flows from financing activities Increase (decrease) in short-term borrowings (69) (224) Repayments of long-term borrowings (3,164) (2,407) Purchase of treasury shares (0) (0) Dividends paid - (270) Repayments of lease liabilities (1) (6) Net cash provided by (used in) financing activities (3,235) (2,908) Effect of exchange rate change on cash and cash equivalents (26) 4 Net increase (decrease) in cash and cash equivalents (1,526) (2,494) Cash and cash equivalents at beginning of period 13,731 15,903 Cash and cash equivalents at end of period 12,204 13,408
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(Notes on segment information, etc.) Segment Information I. Previous interim consolidated accounting period (January 1, 2025 to June 30, 2025) 1. Information on sales and the amount of profit or loss for each reported segment, as well as information on the breakdown o f revenues (Millions of yen) Reportable segments Total Adjustment amount (Note 1) Interim Consolidated Statements of Income (Note 2) Health care Business Biofuel Business Other Business Sales Direct sales (Note 3) 16,703 - - 16,703 - 16,703 Wholesale (Note 4) 1,939 - - 1,939 - 1,939 OEM, Ingredients Supply, Overseas (Note 5, 6, 7) 3,993 - - 3,993 - 3,993 Others (Note 8) 33 457 1,425 1,916 - 1,916 Revenue from contracts with customers 22,670 457 1,425 24,553 - 24,553 Revenues from external customers 22,670 457 1,425 24,553 - 24,553 Transactions with other segments 0 - 7 8 (8) - Total 22,671 457 1,432 24,562 (8) 24,553 Segment profit (loss) 2,760 (114) (218) 2,427 (790) 1,636 Note: 1. Adjusted for segment profit or loss (loss) of (790) million yen is mainly general and administrative expenses and ot her company-wide expenses that are not allocated to each reporting segment. 2. Segment profit or loss (loss) is adjusted for operating income in the interim consolidated statements of income. 3. Direct sales are a form of selling the Group's functional foods and cosmetics directly to consumers via the Internet, tele phone, etc. 4. Wholesale is a form of wholesaling the Group's functional foods and cosmetics directly to various retail stores or through food trading companies, beauty trading companies, etc. 5. OEM is a business model in which product specifications are determined jointly with business partners, and the Group manuf actures products such as functional foods and cosmetics based on orders from business partners, and sells them to business partners . 6. Ingredients Supply is a business model that provides euglena powder to food manufacturers. 7. Overseas, we are developing our business mainly in East Asia to create the Euglena market outside of Japan. 8. Others are mainly income from the sale of off-the-shelf products, contract analysis services, genetic analysis services, biofuels and fertilizers, etc. II. Interim Consolidated Accounting Period (January 1, 2026 to June 30, 2026) 1. Information on sales and the amount of profit or loss for each reported segment, as well as information on the breakdown o f revenues (Millions of yen) Reportable segments Total Adjustment amount (Note 1) Interim Consolidated Statements of Income (Note 2) Health care Business Biofuel Business Other Business Sales Direct sales (Note 3) 17,652 - - 17,652 - 17,652 Wholesale (Note 4) 2,035 - - 2,035 - 2,035 OEM, Ingredients Supply, Overseas (Note 5, 6, 7) 4,604 - - 4,604 - 4,604 Others (Note 8) 25 764 1,423 2,213 - 2,213 Revenue from contracts with customers 24,319 764 1,423 26,507 - 26,507 Revenues from external customers 24,319 764 1,423 26,507 - 26,507 Transactions with other segments 0 - 4 4 (4) - Total 24,319 764 1,428 26,512 (4) 26,507 Segment profit (loss) 3,039 (160) (202) 2,676 (805) 1,871 Note: 1. Adjusted for segment profit or loss (loss) of (805) million yen is mainly general and administrative expenses and ot her company-wide expenses that are not allocated to each reporting segment. 2. Segment profit or loss (loss) is adjusted for operating income in the interim consolidated statements of income. 3. Direct sales are a form of selling the Group's health foods, cosmetics, and other products directly to consumers via the I nternet or telephone. 4. Wholesale is a form of wholesaling the Group's health foods and cosmetics directly to various retail stores or through food trading com panies, beauty trading companies, etc. 5. OEM is a business model in which product specifications are determined jointly with business partners, and the Group manufactures products such as functional foods and cosmetics based on orders from business partners, and sells them to business partners. 6. Ingredients Supply is a business model that provides euglena powder to food manufacturers. 7. Overseas is a business model that provides euglena and chlorella powders, and related products outside of Japan. 8. Others are revenues from the sale of ready-made products in the healthcare business and income from the biofuels business and other businesses.