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.
| Press Relations: |
Investor Relations: |
| ACTUS finance & communication Alexandra Prisa Tel: +33 (0)1 53 67 36 90 aprisa@actus.fr |
ACTUS finance & communication Jérôme Fabreguettes-Leib Tel: +33 (0)1 53 67 36 78 jfl@actus.fr |
Comprehensive income statement
| (€ thousands) | 31/12/16 | 31/12/15 |
| Revenue | 137 | 479 |
| Other income from operations | 568 | 1,185 |
| Production costs | -133 | 0 |
| 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 payments | 138 | -117 |
| Other non-current operating income and expenses | -1,594 | -50 |
| Operating income | -7,700 | -5,836 |
| Income from cash and cash equivalents | 328 | 581 |
| Cost of gross financial debt | -70 | -56 |
| Cost of net financial debt | 258 | 525 |
| Other financial income and expenses | -61 | 16 |
| Net tax expense | -67 | 0 |
| Consolidated net income | -7,570 | -5,295 |
| Minority interests | 11 | 6 |
| 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) | 31/12/16 | 31/12/15 |
| ASSETS | ||
| Goodwill | 0 | 0 |
| Intangible assets | 6,020 | 4,241 |
| Tangible assets | 17,613 | 12,455 |
| Non-current financial assets | 140 | 351 |
| Deferred tax assets | 3,236 | 3,302 |
| TOTAL NON-CURRENT ASSETS | 27,009 | 20,349 |
| Inventories | 558 | 0 |
| Client receivables | 7 | 516 |
| Corporate income tax receivables | 0 | 15 |
| Other non-financial current assets | 2,814 | 3,969 |
| Cash and cash equivalents | 15,707 | 28,506 |
| TOTAL CURRENT ASSETS | 19,086 | 33,006 |
| TOTAL ASSETS | 46,095 | 53,355 |
| LIABILITIES | ||
| Capital | 484 | 484 |
| Premiums | 50,289 | 56,632 |
| Reserves and retained earnings | -6,582 | -7,466 |
| Global net income | -7,559 | -5,287 |
| Shareholders' equity (Group share) | 36,632 | 44,362 |
| Minority interests | -43 | 17 |
| TOTAL SHAREHOLDERS' EQUITY | 36,589 | 44,380 |
| Financial debt | 3,348 | 2,902 |
| Retirement commitments | 64 | 56 |
| Provisions for non-current risks | 0 | 300 |
| TOTAL NON-CURRENT LIABILITIES | 3,412 | 3,258 |
| Bank overdrafts | 0 | 900 |
| Provisions for current risks | 590 | 0 |
| Supplier debt | 3,175 | 1,881 |
| Other current liabilities | 2,329 | 2,936 |
| TOTAL CURRENT LIABILITIES | 6,094 | 5,717 |
| TOTAL LIABILITIES | 46,095 | 53,355 |
Cash flow statement
| (€ thousands) | 31/12/16 | 31/12/15 |
| Global net income | -7,570 | -5,295 |
| Depreciation, amortization and provisions (excluding provisions against current assets) | 1,840 | 992 |
| Expenses on share-based payments | -138 | 117 |
| Change in deferred tax | 66 | 0 |
| Gains and losses on disposals | 235 | 0 |
| Cash flow | -5,567 | -4,186 |
| Cost of gross financial debt | 70 | 56 |
| Cash flow before cost of financial debt, net of tax |
-5,497 | -4,130 |
| Tax | 15 | 0 |
| Change in consumables | -373 | 12 |
| Change in client receivables | 509 | -486 |
| Change in supplier payables | 1,165 | 1,078 |
| Change in other current assets and liabilities (a) | 712 | -279 |
| Change in working capital requirement linked to operations | 2,028 | 325 |
| 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 underway | 595 | 739 |
| Acquisitions of other tangible and intangible assets | -6,849 | -8,407 |
| Change in fixed asset liabilities | -304 | -264 |
| Acquisitions of financial fixed assets | 0 | -1 |
| Disposals of other tangible and intangible assets | 0 | 5 |
| Disposals of financial assets | 211 | 4 |
| Cash linked to the acquisition and disposal of subsidiaries | 0 | 0 |
| NET CASH FLOW LINKED TO INVESTMENTS | -8,807 | -9,963 |
| Capital increase linked to parent company | 0 | 727 |
| Capital increase reserved for employees | 0 | 49 |
| Acquisitions and disposals of own shares | -7 | -8 |
| New borrowings and other financial debt | 332 | 889 |
| Change in current accounts | 51 | -54 |
| NET CASH FLOW LINKED TO FINANCING | 376 | 1,603 |
| Change in cash | -11,899 | -12,165 |
| Opening cash (1) | 27,607 | 39,772 |
| Closing cash (1) | 15,708 | 27,607 |
| (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
