ENVALITH
株式会社ユーグレナ logo

Euglena Co.,Ltd.

2931・Prime Market・Foods

Official website
株式会社ユーグレナ logo
Euglena Co.,Ltd.2931

Business

Euglena Co., Ltd. develops its business under the purpose of "contributing to the sustainable well-being of people and the planet," building on its technology that achieved the world's first successful outdoor mass cultivation of Euglena for food use in 2005. The Group consists of the Company, 15 subsidiaries, and 2 affiliates, with the Healthcare business (development, manufacturing, and sales of health foods and cosmetics) serving as the core profit driver, while the Biofuel business (commercialization of SAF and HVO) and other businesses such as Agri and Bioinformatics are cultivated as next-generation growth drivers. Major customers span a wide range, including general consumers (direct sales and e-commerce), corporate customers (OEM and raw material supply), and energy-related companies (biofuel). Consolidated net sales for FY2025 (ending December 2025) reached a record high of ¥50,370 million.

Business Model

The core of revenue is the Healthcare Business's direct sales channel (FY2025 (ending December 2025): ¥34,049 million), which generates stable cash flow through subscription-based recurring purchases. In addition, the company has a multi-channel structure combining wholesale distribution, OEM supply, raw material sales, and overseas expansion (same period: ¥8,631 million, up 47.5% year-on-year). Using the operating cash flow from the Healthcare Business as a funding source, the company adopts a portfolio management approach in which "earning businesses support growing businesses," investing in new areas such as the Biofuel Business (construction of the Malaysia Commercial Plant) and agriculture.

Company Strengths

In 2005, the company succeeded for the first time in the world in mass outdoor cultivation of Euglena for food applications, and has since continued technological improvements over 20 years to stabilize cultivation, scale up production, and reduce costs. It possesses all three cultivation methods—autotrophic, heterotrophic, and photoheterotrophic—and its ability to switch between them depending on application constitutes an entry barrier that competitors cannot easily replicate.

In addition to its own brands such as "Karada ni Euglena," "CONC," and "one," the company has QSAI (Coraricchi, etc.), Epola, MEJ, and the Satis Pharmaceutical group under its umbrella, operating through multiple channels including direct sales, distribution, OEM, and overseas markets. In FY2025 (ending December 2025), Healthcare segment sales were ¥47,020 million, with segment profit of ¥5,487 million (up 85.8% year on year), reflecting a significant improvement in profitability.

For paramylon, a rare component unique to Euglena, the company has already launched foods with function claims for improving sleep quality, easing stress, and reducing feelings of fatigue. In FY2025 (ending December 2025), it succeeded in standardizing refined paramylon (purity of 80% or higher), and published functional research findings on the gut environment, immunity, and skin care in academic journals such as PNAS. This has laid the groundwork for full-scale B2B sales as a core material in the Fine Chemical field.

ENVALITH's Perspective

Operating profit of ¥837 million and adjusted EBITDA of ¥1,821 million for Q1 FY2026 (ending March 2026) both progressed at a pace exceeding plan, increasing confidence in achieving the full-year forecast (operating profit of ¥3,200 million, adjusted EBITDA of ¥7,000 million). However, it should be noted that the company plans to expand advertising investment from Q2 onward, and has kept its earnings forecast unchanged citing uncertainty in the external environment, including trends in raw material and energy prices against the backdrop of Middle East tensions.

Quarterly net loss attributable to owners of the parent for Q1 FY2026 (ending March 2026) was ¥32 million (compared with a loss of ¥507 million in the same period of the previous year), a significant improvement, but a loss nonetheless persists. This is because net income attributable to non-controlling interests related to the Kyusai Group (¥385 million) and income taxes (¥428 million) exceed quarterly net income of ¥353 million, remaining a structural issue at the consolidated level. Amortization of goodwill and intangible fixed assets related to M&A deals (¥629 million per quarter in the Healthcare Business) also continues to be a factor pressuring profits.

The Biofuel Business segment loss expanded to ¥132 million in Q1 FY2026 (ending March 2026) (compared with a loss of ¥50 million in the same period of the previous year), attributable to an allowance for doubtful accounts recorded in connection with product and raw material trading. The Malaysia Commercial Plant (Joint Venture) is scheduled to commence operations in the second half of 2028, meaning the investment-ahead phase will continue until then. As an external factor, global supply and demand for biofuel feedstocks such as waste cooking oil remain tight, and the risk of rising feedstock procurement costs could affect business profitability.

Growth Strategy

Advancing multi-layered profit foundations across three pillars: deepening the healthcare business, commercializing biofuel, and exploring the agriculture domain

Continuing price revisions for core products, factory productivity improvements, optimization of advertising investment efficiency, and reduction of logistics costs and sales commission ratios. Measures to enhance LTV through strengthening EC mall sales channels, improving retention rates, and cross-selling have proven effective, expanding Healthcare business segment profit in Q1 FY2026 (ending December 2026) to ¥1,499 million (up 24.6% year-on-year). Advertising investment is planned to expand from Q2 onward.

Driven by expanded orders at the Saatvic Pharma Group, OEM, raw materials, and overseas sales in Q1 FY2026 (ending December 2026) grew significantly to ¥2,501 million (up 52.0% from ¥1,646 million in the same period the previous year). The company is simultaneously pursuing expansion of OEM and raw material transactions to strengthen recognition of microalgae as a health food ingredient, and strengthening distribution development with the QSAI Group.

Through a joint venture (the Malaysia JV, 15% equity stake) with Petroliam Nasional Berhad and Enilive S.p.A., a commercial plant is under construction in Malaysia with a feedstock processing capacity of approximately 650,000 tons per year and a biofuel production capacity of up to 12,500 barrels per day. Construction is progressing on schedule, with operations planned to commence in the second half of 2028.

In March 2025, the company was selected as the representative company for the Tokyo Metropolitan Government's "New Energy Promotion Technology Development Support Project," and is promoting the strengthening and demonstration of a domestic HVO supply chain together with eight other companies. As feedstock such as used cooking oil faces tight global supply-demand conditions, the company is working to develop large-volume procurement sources, primarily in Asia, and to build long-term partnerships.

The company is advancing the sophistication of cultivation and extraction technology at research facilities in Japan and Malaysia, centered on heterotrophic cultivation using indoor tanks. Utilizing the Ministry of Economy, Trade and Industry's "Global South Future-Oriented Co-Creation Project Subsidy," the company continues research and development into the potential use of palm agricultural residue biomass in Malaysia as a low-carbon sugar source.

Improved market conditions expanded profits at Daikyo Hiryo and the Euglena Taketomi Shrimp Farm. The company launched a new brand, "Ikimonotachi ni Euglena," and has begun full-scale development of fertilizers and feed utilizing microalgae. In Q1 FY2026 (ending December 2026), sales in the Other Business segment were ¥756 million (down 0.9% year-on-year), with a segment loss of ¥107 million.

Last updated: July 17, 2026