Neptune Wellness Solutions Inc., a diversified and fully integrated health and wellness company focused on plant-based, sustainable and purpose-driven lifestyle brands, today announced its financial and operating results for the three-month period ended on June 30, 2021.
First Quarter Financial Highlights
- Revenues of $12.4 million compared to $11.2 million in the comparable period in fiscal year 2021, and exceeded our pre-announced revenue range of $10 to $12 million. First quarter revenues of $12.4 million increased 83% versus revenues of $6.8 million in the fourth quarter of fiscal year 2021.
- Gross profit loss of $2.9 million or (23.0%) compared to gross profit of $3.3 million or 29.0% for the comparable period in fiscal 2021. By excluding from costs of sales: depreciation and amortization expenses, various fixed and indirect costs, as well as costs related to SugarLeaf, a consolidated gross profit of 13% could be derived, a positive difference of 36 percentage points when compared to the 23% gross profit loss of the quarter.
- Net loss of $23.0 million compared to a net loss of $11.4 million in the first quarter of the previous year.
- Adjusted EBITDA loss was $15.9 million compared to an Adjusted EBITDA loss of $2.5 million in the comparable period in fiscal year 2021.
“Our first quarter revenue exceeded our expectations with sequential improvement of 83% as we delivered innovative products across multiple verticals and expanded our Sprout distribution” said Michael Cammarata, President and Chief Executive Officer of Neptune Wellness. “The executive team recognized more needs to be done to maximize shareholder value, and we asked the Board of Directors to establish a Strategic Review Committee to explore options to accelerate our path to profitability.”
First Quarter Business Highlights
- Neptune’s cannabis brand, PanHash™, was launched in Quebec.
- Neptune announced a multi-year licensing agreement between Sprout® and CoComelon, the world’s leading children’s entertainment brand, owned and operated by Moonbug Entertainment.
- Neptune announced Mood Ring™ cannabis product launches, including flower, in British Columbia.
Subsequent Events and Business Updates
- The Company launched Forest Remedies’ plant-based Omega 3-6-9 gummies and soft gels.
- Sprout products launched into Canada, in Metro grocery stores in the province of Ontario.
- The Mood Ring™ branded flower product was launched in Alberta.
Strategic Review Committee
The company’s executive management team asked the Board of Directors to form a Strategic Review Committee to evaluate the company’s business plan, capital deployment, and long-term strategy to identify alternatives to enhance shareholder value. These strategic options could include, but are not limited to, changes in strategy or operations, strategic business combinations, divestitures, or spin off a portion of the company, or continuing to execute the company’s current business plan.
About Neptune Wellness Solutions Inc.
Headquartered in Laval, Quebec, Neptune is a diversified health and wellness company with a mission to redefine health and wellness. Neptune is focused on building a portfolio of high quality, affordable consumer products in response to long-term secular trends and market demand for natural, plant-based, sustainable and purpose-driven lifestyle brands. The Company utilizes a highly flexible, cost-efficient manufacturing and supply chain infrastructure that can be scaled to quickly adapt to consumer demand and bring new products to market through its mass retail partners and e-commerce channels. For additional information, please visit: https://neptunewellness.com/.
