Fermentalg sales ahead of target, successful production transfer

Libourne - May 14, 2024 - Fermentalg, France's leading microalgae company listed on Euronext (ALGAE), provides an update on its 2024 roadmap, on the opening day of Vitafoods Europe 2024, one of the world's leading events for the nutraceutical industry.

An acceleration in sales in the 2^nd quarter of 2024, with the prospect of a first half well ahead of the annual target of €10 million

After a 77% growth in the 1^st quarter of 2024, which enabled Fermentalg to record its best sales quarter since the beginning of 2022 and confirms its new sales momentum, the trend accelerated further in the 2^nd quarter of 2024.

Based on orders and contracts to be delivered and invoiced by the end of June 2024, Fermentalg expects sales to exceed those of the 1^st quarter 2024 (€2.7 million).

As a result, Fermentalg should end the 1^st half-year 2024 with sales in excess of €6 million, well ahead of its sales target of €10 million for the full year, compared with €4 million in 2023.

This dynamic performance confirms the relevance of strategic choices: specific product innovations by segment and a new sales organization.

At Vitafoods Europe 2024, Fermentalg will expand its DHA ORIGINS range, focusing on the following segments:

• For pregnant women and the development of young children, Fermentalg offers a DHA ORIGIN® range capitalizing on its unique position as the only company authorized by EFSA to propose a daily intake of 1g of DHA/day and the only company producing within the European Union.
• This offer can also be completed by combining DHA with ARA (omega-6) to provide a global response to the demand for essential fatty acids in infant formulations, thanks to a supply partnership.
• For pets, Fermentalg has created an ad-hoc range to be used as a supplement and/or incorporated into petfood.
• In the dietary supplements segment, Fermentalg has co-developed customizable sugar-free, flavored gummies with a high DHA content, specially adapted for the whole family, launched in collaboration with the IRATI company.

Through these initiatives, Fermentalg confirms the strategic pillars of its roadmap, whether through product innovation, targeted partnerships or expansion into new market segments supported by its new sales organization.

The transfer of Fermentalg production to HuvePharma, a partnership for a sustainable, sovereign solution at the heart of the European Union

In addition to its capacity for innovation, Fermentalg can now boast enhanced industrial excellence and environmental performance thanks to a strategic partnership with the HuvePharma group[1] , a leading company in the field of precision fermentation and active in the animal and human health sectors.

By joining forces, the two partners have created the only producer of algal omega-3 in the European Union capable of meeting the needs of all market segments, and with the ambition of becoming a viable alternative to American and Chinese production.

Announced at the end of 2023, this alliance was implemented in record time. Technology transfer and the first industrial-scale fermentations were completed in less than 3 months, with the aim of full production at nominal performance by summer 2024.

"Thanks to our partnership with HuvePharma, we are becoming a key player in the omega-3 market with our DHA ORIGINS range," says Pierre Josselin, CEO of Fermentalg. "This alliance also meets the expectations of major industrial customers, for whom production in the European Union reduces geopolitical supply risks, but also meets their growing demands in terms of sustainability, particularly in terms of carbon footprint, where HuvePharma is aiming for neutrality by 2030."

Algal DHA: the only sustainable answer to growing demand in the face of dwindling fish stocks

With 80% of the world's population lacking the omega-3 intake recommended by the World Health Organization, the marine resources that traditionally supply these fatty acids are under increasing threat from climate change and intensive industrial fishing. In this context, Fermentalg's DHA ORIGINS®, the most naturally concentrated on the market, offers an innovative response.

Cultivated by fermentation in a controlled environment, algal DHA guarantees a secure supply of stable quality, while preserving ocean biodiversity. By opting for algal DHA, consumers are choosing a natural, sustainable solution that not only promotes personal health, but also contributes to the health of the planet.

The Fermentalg team will be presenting these innovations and this strategic partnership at Vitafoods Europe 2024 in Geneva, from May 14 to 16, 2024, on stand #M163.

Next publication: 1^er half-year sales 2024,
July 4, 2024 (after market close)

About Fermentalg

An expert in the research and bioindustrial exploitation of microalgae, Fermentalg aims to offer sustainable solutions and innovative products that contribute to the development of healthy, natural and high-performance products. Our business: the development, production and marketing of sustainable solutions and active ingredients derived from microalgae, for nutrition, health and the environment. Nutritional lipids, alternative proteins, natural food colorings and innovative environmental solutions make up our company's current and future offering. Fermentalg shares are listed on Euronext Growth Paris (FR0011271600 - ALGAE) and are PEA-PME eligible. It has received an Exemplary rating (90/100) from EthiFinance ESG Ratings, a rating agency specializing in the ESG performance of SMEs listed on European markets, in favor of Socially Responsible Investment (SRI).

For further information: www.fermentalg.com

^[1] Through its subsidiaries HuveNutra and Biovet