AFYREN Announces Its 2025 Half-Year Financial Results

• Continuous production and acceleration in commercialization
  • Industrial continuous running of the plant achieved, and hundreds of tons of bio-based acids produced
  • Over 100 tons already commercialized for several clients and applications
• Good control of expenses and solid financial position
  • Stable cash consumption in H1 2025 vs. 2024, including plant start-up financial support
  • Solid cash position of 27.5 million as of June 30, 2025
• Short- and medium-term outlook
  • First significant production revenue starting in 2025, plant breakeven (positive current EBITDA) within a few quarters
  • Plant optimization program initiated

Regulatory News:

AFYREN (Paris:ALAFY),a greentech company offering manufacturers bio-based, low-carbon ingredients through a unique fermentation technology based on a circular model, announces today the half-year financial results for the period ended June 30, 2025, which have been subject to a limited review by the statutory auditor and approved by the Board of Directors on September 10, 2025.

Nicolas SORDET, Chief Executive Officer of AFYREN, stated: "In the first half of 2025, we reached a key milestone in AFYREN's history with the launch of continuous production, reflecting major operational progress. This advancement was accompanied by strong financial discipline, with cash consumption remaining stable compared to the same period last year. Looking ahead, our roadmap is clear: ramp up industrial output, accelerate the commercialization of our acids, and continue optimization work at the plant to meet European market expectations swiftly. The experience gained over the past two years is a valuable asset in achieving our global ambition, while maintaining strict budgetary discipline."

Recent MILESTONEs

Update on AFYREN NEOXY's progress

Production and commercialization

In June 2025, AFYREN announced that continuous production¹ had been achieved at the plant. This major milestone is the culmination of two years of efforts by the AFYREN and AFYREN NEOXY teams to ensure the reliability of the equipment and master operations on an industrial scale, enabling the continuous operation of this unique biorefinery.

This significant achievement marked the beginning of a new phase that will see the gradual ramp-up of AFYREN NEOXY's industrial production, with the prospects of manufacturing and commercializing several hundreds of tons of products in the second half of 2025.

Since this announcement and following a qualification phase lasting a couple of weeks, AFYREN has shipped product to several clients, exceeding 100 tonnes delivered and invoiced as of the date of this press release.

AFYREN NEOXY Optimization Strategy

While ramping-up production at AFYREN NEOXY, AFYREN is aiming to implement operational improvements which, with an additional investment of around €20 million, would enable the company to increase production capacity to c.20 kt a 20% increase compared to the initially planned capacity of 16 kt.

This optimization of the plant would enable the company to meet growing commercial demand and improve the plant's financial performance: AFYREN would be able to raise the projected EBITDA to €14 million, representing a 40% increase over current forecasts of €9 million.

To support the planned investment and the ramp-up of AFYREN NEOXY, AFYREN will draw on part of its available cash, while ensuring it maintains sufficient financial flexibility for operations. With the aim of preserving a balanced and sustainable financial structure, other sources of financing are being explored, part of which already secured in the form of grants and loans (see PR released July 8, 2025).

Commercial partnerships

Commercial relationships and partnerships

The industrial ramp-up of AFYREN NEOXY allows for regular updates on AFYREN's commercial progress. The recent deliveries mark the materialization of commercial relationships between AFYREN and its clients, some of which were initiated as early as 2018 and are based on a shared vision of sustainability and innovation.

The current contracts, worth €165 million in the next few years, include several take-or-pay agreements and secure clients for several years of production. This visibility on sales sets AFYREN apart from many other greentech companies.

A differentiated and unique offering at the commercial stage

AFYREN sells 100% bio-based acids which can be directly integrated into the products of clients in the human food, animal feed, flavors and fragrances, and life sciences sectors, enhancing the perceived value of their offerings, at a competitive cost.

Industrial customers are leveraging the natural origin of the ingredients including their fermentation-based and 100% bio-based nature and/or their low carbon footprint, which is also due to their local sourcing and the fully circular approach of the manufacturing process. For example, AFYREN acids are COSMOS-certified the internationally recognized standard for organic and natural cosmetic products²

To date, AFYREN has not identified any direct competition. The few 'pure players' in bio-based carboxylic acids are currently at the pilot stage, with no short-term prospects of achieving industrial-scale production capacity.

CSR roadmap³

Integral to AFYREN's value proposition and supported by an ambitious corporate governance, CSR is at the heart of the Company's strategic orientations.

The H1 2025 achievements include:

• Obtaining the "Responsible Care Confirmed diagnosis" certification from France Chimie for the AFYREN NEOXY site;
• Publishing our second Sustainability report, deliberately drawn up in the spirit of ESRS (Environmental, Social, and Governance Reporting Standards). This document is available and can be consulted and downloaded from the Company's website: https://afyren.com/en/purpose/
• A further increase in EthiFinance's extra-financial rating to 85/100 (Platinum Level), highlighting AFYREN's efforts to put CSR considerations at the heart of the corporate strategy.

A solid financial position

Stable operating loss reflecting tight control of operating expenses

Simplified P&L (€k)	06/2025	06/2024	Var.
Revenue (CA)	1 204	1 364	-12%
licensing and development of industrial know-how		709
other services provided	1 204	656	+84%
Operating loss	(3 641)	(3 590)	+1%
Net financial result	851	978	-13%
Share in loss of AFYREN NEOXY4	(4 134)	(2 710)	+53%
Net loss	(6 924)	(5 322)	+30%

Revenue in H1 2025 amounted to €1.2 million, compared with €1.4 million in H1 2024. As services provided as part of the industrialization phase are ending recognized as license revenue since December 2018 revenue now solely consists of income from various administrative and technical service agreements signed with AFYREN NEOXY. The increase in H1 2025 compared to the same period in 2024 is due to the expansion of the scope of services accounted for by AFYREN.

Net current operating expenses⁵ amounted to €4.8 million, slightly below the €5.0 million recorded at the end of H1 2024.

Expenses include:

• purchases and other external charges decreasing by €0.3 million, including costs incurred for the development of future plants;
• an increase in payroll costs by €0.2 million, mainly due to compensation costs. The average number of full-time equivalents (FTE) reached 48 (ex NEOXY), compared with 44 as of June 30, 2024.

Within operating expenses, research and development expenses recognized as costs amounted to €0.9 million, stable compared to the same period in 2024.

Current operating loss is broadly in line with the same period last year, with tight control of operating expenses offsetting the decrease in revenue.

Net financial results were positive in H1 2025: financial income from investment of cash was €0.9 million, compared with €1.1 million in H1 2024. Financial expenses amounted to €41,000, reflecting the low level of debt at AFYREN holding levels.

The Group's share in AFYREN NEOXY's net loss amounted to €(4.1) million at the end of June 2025, compared with €(2.7) million at the end of June 2024. This result is mainly due to the plant's operating expenses, while first meaningful revenue of the plant is expected in H2 2025. It also reflects an increase in financial expenses due to new financing secured at the end of 2024.

Net loss was €(6.9) million at the end of June 2025, compared with €(5.3) million at the end of June 2024, reflecting an overall stable cost structure pending a positive contribution from production and sales at the AFYREN NEOXY plant.

Cash position of 27.5 million

Simplified balance sheet (€k)	06/2025	12/2024
Non-current financial assets	9 334	13 454
of which equity-accounted securities	4 485	8 618
Current assets	42 124	45 106
of which cash and cash equivalents	27 468	33 538
Total assets	51 458	58 560
Equity	46 156	52 698
Non-current liabilities	2 452	3 019
of which loans and financial debts	1 496	2 035
Current liabilities	2 849	2 842
of which loans and financial debts	1 205	1 282
Total liabilities	51 458	58 560

At the end of June 2025, AFYREN had a solid cash position of €27.5 million, reflecting cash consumption of around €6 million over the period, of which €2.9 million was granted to its subsidiary AFYREN NEOXY, in the form of a shareholder loan.

Total financial debt was kept at €2.7 million⁶ at the end of June 2025. Loan repayments represented €0.7 million over the first semester.

COMPANY Outlook

AFYREN NEOXY expects production revenue in 2025 to be in the low single-digit million euros range⁷. The plant is expected to break even (positive current EBITDA) within a few quarters.

AFYREN's medium-term objectives will be updated to reflect the progress of the AFYREN NEOXY ramp-up. The core operational and financial targets remain unchanged specifically the plan to build and operate three production sites, generating a combined €150 million in revenue at full capacity⁸ with a target Group EBITDA margin of around 30%.

Instead of adhering strictly to the current target of having three plants installed, including two in continuous production by 2028, AFYREN is exploring a phased approach. This would allow the company to consolidate the achievements of its first biorefinery and leverage the operational experience gained before moving forward with the development of Plants 2 and 3.

This approach will enable the Group to maintain a safe degree of agility and keep good control of AFYREN's cash burn and should enable the financing of future plants under optimized conditions.

2025 Half-year Financial report availability

The Company will make its 2025 Half-Year Financial Report in French available today. An English version will follow shortly.

About AFYREN

AFYREN is a French greentech company, founded in 2012, focused on providing innovative, sustainable solutions to reduce reliance on fossil-based resources. AFYREN's proprietary, nature-inspired fermentation technology valorizes local biomass from non-food agricultural co-products to produce 100% biobased, low-carbon carboxylic acids. The company's sustainable solutions address decarbonization challenges in a wide variety of strategic sectors, including human and animal nutrition, flavors and fragrances, life sciences, materials science, plus lubricants and technical fluids. AFYREN's competitive, plug-and-play, circular technology enables manufacturers to adopt sustainable solutions without modifying production processes.

The company's first industrial plant, AFYREN NEOXY, a joint venture with Bpifrance's SPI fund, is based in the Grand-Est region of France, serving primarily the European market. AFYREN is also pursuing a project in Thailand with a global leader in the sugar industry and is building its presence in the Americas, based on existing distribution agreements.

At the end of 2024, AFYREN employed 130 people across sites in Lyon, Clermont-Ferrand and Carling Saint-Avold. Committed to continuous innovation, the company invests 20% of its annual budget in R&D to further develop the range of sustainable solutions.

AFYREN is listed on Euronext Growth Paris since 2021 (ISIN code: FR0014005AC9, ticker: ALAFY).

For more information, visit www.afyren.com and follow us on LinkedIn.

APPENDIX

1. Income statement

In k€		06/2025		06/2024
Revenue		1 204		1 364
Other income		277		242
Purchases and external charges		-1 390		-1 675
Payroll costs		-3 249		-3 029
Depreciation of fixed assets and rights of use		-424		-405
Other expenses		-59		-88
Current operating income		-3 641		-3 590
Non-current operating income
Operating income		-3 641		-3 590
Financial income		892		1 051
Financial expenses		-41		-73
Net financial income		851		978
Share in income of equity-accounted company (net of tax)		-4 134		-2 710
Income before tax		-6 924		-5 322
Income tax		-0		0
Net income for the year		-6 924		-5 322
Earnings per share
Basic earnings per share (in euros)		0.27		0.20
Diluted earnings per share (in euros)		0.27		0.20

2. Balance sheet

In €k		06/2025		12/2024
Intangible assets		2 795		2 940
Property, plant and equipment		290		325
Rights of use		242		254
Equity-accounted securities		4 485		8 618
Non-current financial assets		1 523		1 317
Non-current assets		9 334		13 454
Trade receivable		513		432
Current financial assets		154		107
Other current assets		13 988		11 030
Cash and cash equivalents		27 468		33 538
Current assets		42 124		45 106
Total assets		51 458		58 560
Share capital		522		522
Issue premiums		85 406		85 406
Reserves		7 995		(9 435)
Retained earnings		24 854		(14 042)
Net income for the year		6 924		(9 754)
Equity attributable to the owners of the Company		46 156		52 698
Non-current borrowings and financial liabilities		1 382		1 972
Non-current lease liabilities		115		62
Defined benefit liabilities		64		73
Non-current provisions		14		14
Non-current deferred income (customer contract liabilities)
Non-current deferred income (subsidies)		877		898
Non-current liabilities		2 452		3 019
Current borrowings and financial liabilities		1 083		1 093
Current lease liabilities		122		188
Trade payables		253		526
Current deferred income (customer contract liabilities)
Other current liabilities		1 391		1 035
Current liabilities		2 849		2 842
Total liabilities		5 301		5 862
Total equity and liabilities		51 458		58 560

3. Cash-flow statement (simplified)

In k€	06/2025	06/2024
Net income for the year	- 6 924	- 5 322
Total elimination of expenses and income with no cash impact	4 038	2 574
Total cash flow	- 2 885	- 2 748
Total change in working capital	196	- 635
Net cash from operating activities	- 2 690	- 3 383
Acquisitions of PPE and intangible assets, net of disposals	-84	-52
Capitalised development expenses	40	19
Investment grants (incl. CIR offsetting capitalised costs)	2	49
Subscription to AFYREN NEOXY capital increases	2 900	2 500
Current account contributions AFYREN NEOXY	369	838
Interest received		62
Increase in non-current financial assets		12
Increase in current financial assets (liquidity contract)		1
Net cash used in investing activities	- 2 657	- 1 735
Capital increase		129
Purchase/sale of treasury shares	37	306
Proceeds from new borrowings and financial liabilities
Repayment of borrowings and financial liabilities	588	702
Repayment of convertible bonds
Payment of lease liabilities	130	110
Interest paid on borrowings and financial liabilities
Interest paid on bonds	32	38
Interest paid on lease liabilities	9	10
Net cash used in financing activities	- 723	- 1 039
Net change in cash and cash equivalents	- 6 070	- 6 157
Cash and cash equivalents as of January 1st	33 538	49 559
Cash and cash equivalents as of June 30	27 468	43 402

_____________________________________

¹ Simultaneous operation of all stages of the process from fermentation to finished products, in a stable and repeatable manner

²https://www.cosmos-standard.org/en/

³ Environmental, social and governance criteria

⁴ Joint-venture between AFYREN and BPIfrance which is equity-accounted

⁵ Net of other income, mainly operating subsidies

⁶ Including lease liabilities

⁷ Projections subject to operational adjustments to be made to increase production rates during the ramp-up phase

⁸ After a ramp-up period

View source version on businesswire.com: https://www.businesswire.com/news/home/20250910623363/en/

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