Euglena

Basic Information

Stock Code
2931
Industry
Food Products
Category Detail
Food Manufacturing
Prefecture
Tokyo
Establishment Year
August 2005
Listing Year
December 2012
Official Website
https://www.euglena.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Sogo Rinsho Holdings, Yomeishu Seizo, AFC-HD AMS Life Science, Pharmafoods, Base Food, Sumitomo Pharma, Morishita Jintan, Cyberdyne, NTT

Overview

Euglena is a bio-venture established in 2005, a pioneering food manufacturer centered on research and production of microalgae, focusing on health foods, cosmetics, and the development of environmentally friendly biofuels.

Current Situation

Euglena achieved consolidated sales of 47.6 billion yen in the fiscal year ending December 2024, but recorded a net loss of 650 million yen. Its mainstay businesses are health foods and cosmetics utilizing the microalgae Euglena (midorimushi), and it possesses proprietary mass cultivation technology. It is also advancing the development of biodiesel and biojet fuel, engaging in demonstration tests and commercialization through collaborations with the government and major companies. Emphasizing sustainable business development, it offers the biofuel brand 'SUSTEO,' made from used cooking oil. It is promoting collaborations with the Marui Group and Rohto Pharmaceutical through capital and business alliances. While the market evaluates its growth potential, risks such as delays in biofuel commercialization and competitor movements are under watch. Moving forward, it aims to strengthen health food sales, accelerate the practical application of environmental technologies, and contribute to a sustainable society.

Trivia

Interesting Facts

  • First company in the world to succeed in outdoor mass cultivation of Euglena
  • Pioneering challenge in practical application of Euglena-derived biojet fuel
  • Euglena Mall named in Ishigaki Island's shopping street
  • Unique future strategy publicly recruiting under-18s as CFO (Chief Future Officer)
  • Track record of supplying domestic biofuel to government dedicated aircraft
  • Euglena-derived supplements widely recognized in health food market
  • Stock price once surged as a symbol of Abenomics growth strategy
  • Euglena-related technologies attracting attention from competitors due to limited patent applications
  • Some point out difficulties in achieving biofuel profitability targeted in medium-term plan
  • Applies proprietary technology not only to health foods but also to cosmetics business

Hidden Connections

  • Livedoor's Takafumi Horie was an early shareholder and provided venture support
  • Accelerated business expansion through alliance with Itochu Corporation
  • Expanding into multiple fields through capital and business alliances with Marui Group and Rohto Pharmaceutical
  • Acquired naming rights for Ayapani Mall in Ishigaki City, contributing to regional revitalization
  • Biojet fuel is a joint development project with All Nippon Airways and Isuzu Motors
  • Track record of equipping own fuel on Civil Aviation Bureau inspection aircraft
  • Unique format promoting future generations' involvement in management through CFO recruitment
  • Sports sponsorship providing fuel to Mazda's Super Taikyu race entry vehicles

Future Outlook

Growth Drivers

  • Expansion of demand for food and cosmetics based on Euglena's health benefits
  • Increasing demand for biofuels amid environmental burden reduction and decarbonization society
  • Market expansion through collaborations with Marui Group and Rohto Pharmaceutical
  • EC channel expansion via strengthened digital marketing
  • Tailwinds from strengthened environmental regulations domestically and internationally
  • Production efficiency improvements and cost reductions through technological innovations
  • Deepening of sustainable raw material procurement and product development
  • Utilization of government environmental policy support
  • Expansion of health-conscious consumer base
  • Improved brand recognition through scale expansion
  • Strengthened revenue base through diversified business expansion
  • Acceleration of entry into global markets

Strategic Goals

  • Achieve profitability through commercialization of microalgae-derived biofuels
  • Capture 30% domestic share in health foods and cosmetics business
  • Expand production of renewable fuels using used cooking oil
  • Elevate SUSTEO sustainable brand recognition to top class in Japan
  • Establish cutting-edge production technologies through continued R&D investment
  • Build sustainable business model through coexistence with local communities
  • Achieve 50% product export ratio to Europe, America, and Asia
  • Double mail order sales through strengthened digital sales
  • Achieve CO2 reduction targets and comply with environmental standards
  • Foster next-generation management talent and promote diversity

Business Segments

Biofuel Manufacturing and Sales

Overview
Business area involving research, development, demonstration testing, and sales of microalgae-derived biofuels.
Competitiveness
Proprietary mass cultivation technology and know-how for domestic fuel commercialization
Customers
  • Automotive Manufacturers
  • Airlines
  • Environmental Companies
  • Government Agencies
  • Transportation Operators
Products
  • Biodiesel Fuel
  • Biojet Fuel
  • Fuel Production Technology Licensing

Raw Materials Supply

Overview
Provides nutritional components from microalgae as raw materials for health foods and cosmetics.
Competitiveness
High-quality, stable raw material supply system
Customers
  • Health Food Manufacturers
  • Cosmetics Manufacturers
  • Pharmaceutical Development Companies
  • Research Institutions
Products
  • Euglena Powder
  • Lipid Extracts
  • Functional Ingredient Extracts

Product OEM Manufacturing

Overview
Manufacturing services for OEM supply to other brands.
Competitiveness
Development capabilities and production management specialized in microalgae
Customers
  • Health Food Brands
  • Cosmetics Manufacturers
  • Mail Order Businesses
Products
  • Health Food OEM
  • Cosmetics OEM

Consulting and Joint Development

Overview
Supports introduction of microalgae-related technologies and new business development.
Competitiveness
Extensive technology development track record and industry-academia collaboration know-how
Customers
  • Corporations
  • Local Governments
  • Universities and Research Institutions
Products
  • Technical Support
  • R&D Collaboration

Mail Order and Direct Sales Support

Overview
Operation of mail order sales and related services for own brands.
Competitiveness
Stable customer base and brand strength
Customers
  • Consumers
  • EC Companies
Products
  • Mail Order Products
  • Membership Services

Competitive Advantage

Strengths

  • Possesses proprietary Euglena mass cultivation technology
  • Broad lineup of health foods and cosmetics
  • Early investment in biofuel business with operational demonstration facilities
  • Strong brand recognition and market trust
  • Specialization in environmentally considerate product development
  • Resource utilization through diverse capital and business alliances
  • Diversified industrial bio-technology applications
  • High R&D capabilities and accumulation of patented technologies
  • Product lineup appealing to health-conscious users

Competitive Advantages

  • Pioneer and leading company in domestic Euglena commercial cultivation technology
  • Proprietary biofuel technology aiming for practical application of environmentally responsive fuels
  • Market development strength through capital and business alliances with multiple industries
  • Balanced expansion of consumer products and B2B businesses
  • Advancement of demonstrations through strong ties with government agencies and major companies
  • Enhanced reliability of health foods through advanced nutritional analysis
  • Direct sales strength leveraging robust mail order channels
  • Differentiation in cosmetics market via proprietary materials
  • Brand strategy centered on sustainability and health orientation
  • Risk diversification through diversified business expansion

Threats

  • Challenges in revenue realization due to delays in biofuel commercialization
  • Technology competition pressure from overseas companies' patents
  • Intense competition and price wars in health food market
  • Business risks from rapid technological innovations
  • Stock price volatility risks from market expectations
  • Impacts from raw material costs and regulatory changes
  • Decline in consumer spending due to economic fluctuations
  • Rising maintenance costs for production facilities
  • Pressure to maintain product quality and ensure safety
  • Impacts from changes in management policies of capital alliance partners

Innovations

2020: Commercial Demonstration Operation of Biojet Fuel

Overview
Successful flight of biojet fuel on Ministry of Land, Infrastructure, Transport and Tourism inspection aircraft
Impact
Leading the practical application of domestic SAF

2021: Launch of SUSTEO Brand

Overview
Expansion of biofuel brand using used cooking oil and Euglena-derived lipids
Impact
Building market foundation for sustainable fuel business

2023: Capital and Business Alliance with Marui Group and Rohto Pharmaceutical

Overview
Advancing joint ventures toward realizing a sustainable society
Impact
Business expansion and synergy enhancement

2022: Supply of Biofuel to Government Aircraft

Overview
Second refueling of government dedicated aircraft using domestic biofuel
Impact
Improved social recognition of practicality

2024: Improved Usability of Euglena through Variety Breeding

Overview
Product performance improvement using new Euglena strain developed with domestic technology
Impact
Product differentiation and production efficiency improvement

2021: Announcement of Joint Large-Scale Biofuel Plant Construction Plan

Overview
Considering construction of commercial-scale plant 400 times larger based on Yokohama demonstration success
Impact
With future business expansion in view

2020: Completion of Biodiesel Fuel

Overview
Start of fuel supply to Isuzu Motors shuttle buses
Impact
Market entry through practical application

Sustainability

  • Biofuel production using used cooking oil as main raw material
  • Promotion of raw material circular manufacturing processes to reduce waste
  • Strengthened compliance with safety and functional food labeling systems
  • Contribution to CO2 emission reductions through biofuels
  • Participation in environmental awareness activities for local communities
  • Utilization and coexistence with regional resources centered on Ishigaki Island
  • Product development aimed at reducing environmental impact
  • Promotion of energy-saving equipment introduction
  • Efforts for stable supply of sustainable raw materials