Euglena Co., Ltd. Announces Dividend Distribution

Source disclosure: February 13, 2026

Euglena Co., Ltd. [2931.T]

TOKYO, Feb 13 (Pulse News Wire) -- Euglena Co., Ltd. (2931.T), led by Chairman and CEO Shizumu Degumo, announced today that its board of directors has decided to propose reducing the company's capital reserve fund and distributing surplus funds at an upcoming annual shareholders' meeting scheduled for March 24, 2026. The proposal includes a special dividend of ¥2 per share to commemorate the company’s 20th anniversary on August 2025.

The reduction in the capital reserve fund is aimed at addressing accumulated losses and improving the company's financial health while allowing greater flexibility in implementing shareholder return strategies such as dividends and stock repurchases. According to the announcement, the company plans to decrease its capital reserve fund by ¥13 billion from its current level of ¥17.924516248 billion, leaving it at ¥4.924516248 billion. This reduction will be offset by increasing other capital surplus reserves and retained earnings.

Additionally, the company intends to transfer part of the reduced capital reserve fund to cover accumulated losses. Specifically, the company will reduce other capital surplus reserves by ¥3.58056629 billion and allocate this amount to retained earnings to address past deficits. These changes are set to take effect on March 24, 2026, contingent upon approval during the shareholders’ meeting.

Regarding the proposed dividend distribution, the company aims to distribute a total of ¥273.156876 million based on the number of shares outstanding as of December 31, 2025. Each eligible shareholder will receive ¥2 per share, marking the first time the company has distributed a dividend since its establishment. The dividend payout date is tentatively set for March 25, 2026, assuming all necessary approvals are obtained.

Euglena also outlined several key dates related to these proposals. A creditors' objection notice is expected to be published on February 18, 2026, followed by a final deadline for creditor objections on March 18, 2026. If approved by the shareholders, the capital reserve reduction and surplus fund reallocation will become effective on March 24, 2026, alongside the dividend payment on March 25, 2026.

In a statement, CFO Toshihiro Wakahara emphasized that the proposed actions would not affect the company's net asset value or performance metrics. However, he noted that the exact impact on net assets would be disclosed once calculations were finalized. The company remains committed to maintaining robust financial stability and rewarding long-term investors through strategic financial management decisions.

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