Neptune schedules its fourth quarter and
fiscal 2020 financial results conference call for June 10, 2020
First quarter fiscal 2021 revenue growth is
expected to accelerate significantly, reflecting YOY growth of 300%
to 400% to approximately $18 million
to $22 million
Fiscal 2020 revenue is anticipated to increase
15% to 21% to approximately $28.0
to $29.6 million from
$24.4 million in the prior
year
LAVAL, QC, May 14, 2020 /CNW Telbec/ - Neptune Wellness
Solutions Inc. ("Neptune" or the "Company") (NASDAQ: NEPT) (TSX:
NEPT), a diversified and fully integrated health and wellness
company, provides a business update and announces that it intends
to release its financial results for the fourth quarter and fiscal
year ended March 31, 2020 after the
market close on June 10, 2020,
followed by a conference call and audio webcast at 4:30 p.m. Eastern Time the same day.
First Quarter Fiscal 2021 Revenue Outlook
For the
first quarter of fiscal year 2021 ending June 30, 2020, Neptune expects to report strong
quarter-over-quarter growth in its company-wide revenues to a
range of between $18 million and
$22 million. This revenue growth is
driven by the accelerated expansion of Neptune's Health and
Wellness solutions and its agile adaptation to changing market
conditions and demands. This product portfolio expansion, with the
recent product announcements of hand sanitizers and Neptune Air
non-contact thermometers, utilizes a highly flexible and low cost
supply chain infrastructure, relying on internal and third-party
manufacturers that can be scaled up or down quickly to adapt to
market demand. In a currently volatile market that sees high demand
for these product categories, but also increased supply from a wide
range of providers, Neptune is not in a position to confirm
projected sales or revenue for these new products, beyond those
reflected in the first quarter revenue indication provided above.
The Company is also seeing growth of its extraction revenue,
reflecting the successful implementation of new capacity.
Recent corporate developments and drivers of accelerated Q1
fiscal growth include:
- The launch of Neptune's Forest Remedies™ and Ocean Remedies™
brands and growth of direct-to-consumer e-commerce operations
supporting new brand development
- Successful development of hand sanitizer products and
significant new retail orders and initial shipments
- An exclusive partnership with legendary wildlife
conservationist, Dr. Jane Goodall,
to co-develop natural health and wellness products under the Forest
Remedies™ brand
- The Phase II expansion of the Sherbrooke facility becoming operational and
the addition of new extraction business
- The launch of Neptune Air non-contact thermometers and
shipments to a large business service customer
- Significant enhancements to the Company's management,
operations and sales teams, including new talent with professional
experience with companies such as Unilever, Colgate-Palmolive,
Hanes, SmartyPants Vitamins and MediPharm, contributing to improved
production levels and new client wins
- Leveraging significant corporate partnerships with IFF and
American Media to accelerate product development, growth, brand
reach and distribution.
"We ended fiscal 2020 with strong year-over-year growth while
building world-class team and infrastructure to accelerate our
growth and achieve a fully realized B2B business and complementary
direct to consumer brands. We are now leveraging Neptune's strong
assets and history in the large and growing health and wellness
sector. We have quickly positioned ourselves as leading innovators,
partners and brand developers, rapidly bringing our new products
and brands to market through utilization of our turnkey supply
chain solutions and the collective experience of an impressive team
assembled over the past year. Our exposure to fast growing sectors,
strong customer relations and responsiveness to emerging trends is
establishing a strong foundation for growth," said Michael Cammarata, Chief Executive Officer of
Neptune Wellness.
"During the first quarter of fiscal 2021 we are beginning to see
the strong results of our efforts with accelerated revenue growth
and strong demand across all channels of distribution. Our recent
innovations are resonating, our pipeline for future product
introductions is robust and we have established significant new
relationships across the North American retail industry. These
accomplishments have come amid the significant challenges of
COVID-19, to which our entire team has responded rapidly and
effectively while executing our significant expansion efforts to
drive strong growth. Each of our operations continues to support
customers uninterrupted, and we have supplemented our growth
product offering with solutions for our valued retail customers and
consumers during this unprecedented time. We are thankful for the
tireless efforts of the entire Neptune team," commented Dr.
Toni Rinow, Chief Financial
Officer.
Preliminary Fiscal 2020 Financial Highlights
Neptune
also today announced that, based upon information currently
available to management, it anticipates reporting revenue of
approximately $28.0 million to
$29.6 million for the twelve months
ended March 31, 2020, compared to
$24.4 million for the twelve months
ended March 31, 2019, with the
year-over-year change resulting primarily from the acquisition of
Sugarleaf as well as the increase in revenues from the Company's
Cannabis segment. Neptune also announces that negative gross profit
between $0.5 and $2.0 million is expected for the twelve months
ended March 31, 2020, reflecting
costs associated with the start-up operations of the Company's
Cannabis segment. For the fourth quarter of fiscal 2020, the
Company anticipates reporting revenue of $8.0 million to $9.6
million, compared to $5.7
million in the prior year period, an approximate growth rate
of 40% to 69%.
Neptune announces that, given current market conditions, it has
undertaken a thorough review of all business operations and
concluded that certain long-lived asset values as at March 31, 2020 exceed current fair-market
valuations. As such, when Neptune formally reports its fiscal 2020
results, it expects to report additional non-cash long-lived asset
impairment charges. The long-lived asset impairment charge, net of
the gain on contingent consideration on the Sugarleaf asset
purchase price, is expected to be a maximum of $15 million.
Neptune announced that its consolidated cash position was
$16 million at March 31, 2020. This excludes capacity under its
current ATM program.
All figures reported above with respect to the fiscal year 2020
are preliminary and are unaudited and subject to change and
adjustment as the Company prepares its consolidated financial
statements for the year ended March 31,
2020. Accordingly, investors are cautioned not to place
undue reliance on the foregoing guidance.
Conference Call
Details
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Date:
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Wednesday, June 10,
2020
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Time:
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4:30 PM Eastern
Daylight Time
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Call:
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1 (888) 231-8191
(Canada and U.S.)
1 (647) 427-7450 (International)
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Conference ID:
9282248
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A replay of the call will be available shortly after the call's
completion and until July 10, 2020.
The replay can be accessed online in the Investors section of
Neptune's website under Investor Events and Presentations.
The Company does not undertake to provide preliminary results or
guidance in the future, nor to update the information provided in
the news release other than as required under applicable securities
laws. The preliminary results provided in this news release
constitute forward-looking statements within the meaning of
applicable securities laws, are based on several assumptions and
are subject to a number of risks and uncertainties. Actual results
may differ materially. See
"Forward-looking statements".
About Neptune Wellness Solutions Inc.
Neptune
Wellness Solutions is a diversified and fully integrated health and
wellness company. Through its flagship consumer-facing brands,
Forest Remedies™ and Ocean Remedies™, Neptune is redefining health
and wellness by building a broad portfolio of natural, plant-based,
sustainable and purpose-driven lifestyle brands and consumer
packaged goods products in key health and wellness markets,
including hemp, nutraceuticals, personal care and home care.
Leveraging decades of expertise in extraction and specialty
ingredient formulation, Neptune is a leading provider of turnkey
product development and supply chain solutions to businesses and
government customers across several health and wellness verticals,
including legal cannabis and hemp, nutraceuticals and white label
consumer packaged goods. The Company utilizes a highly
flexible and low cost supply chain infrastructure that can be
scaled up and down or into adjacent product categories to quickly
adapt to market demand. Neptune's corporate headquarters is located
in Laval, Quebec, with a
50,000-square-foot production facility located in Sherbrooke, Quebec and a 24,000 square-foot
facility located in North Carolina. For additional
information, please visit: https://neptunecorp.com/
Forward Looking Statements
Statements in this press release that are not statements of
historical or current fact constitute "forward-looking statements"
within the meaning of the U.S. securities laws and Canadian
securities laws. Such forward-looking statements involve known and
unknown risks, uncertainties, and other unknown factors that could
cause the actual results of Neptune to be materially different from
historical results or from any future results expressed or implied
by such forward-looking statements. In addition to statements which
explicitly describe such risks and uncertainties, readers are urged
to consider statements labeled with the terms "believes", "belief",
"expects", "intends", "projects", "anticipates", "will", "should"
or "plans" to be uncertain and forward-looking. Readers are
cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date of this press
release.
The forward-looking statements contained in this press release
are expressly qualified in their entirety by this cautionary
statement and the "Cautionary Note Regarding Forward-Looking
Information" section contained in Neptune's latest Annual
Information Form (the "AIF"), which also forms part of Neptune's
latest annual report on Form 40-F, and which is available on SEDAR
at www.sedar.com, on EDGAR at www.sec.gov/edgar.html and on the
investor section of Neptune's website at www.neptunecorp.com. All
forward-looking statements in this press release are made as of the
date of this press release. Neptune does not undertake to update
any such forward-looking statements whether as a result of new
information, future events or otherwise, except as required by law.
The forward-looking statements contained herein are also subject
generally to other risks and uncertainties that are described from
time to time in Neptune public securities filings with the
Securities and Exchange Commission and the Canadian securities
commissions. Additional information about these assumptions and
risks and uncertainties is contained in the AIF under "Risk
Factors".
Neither NASDAQ nor the Toronto Stock Exchange accepts
responsibility for the adequacy or accuracy of this release.
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SOURCE Neptune Wellness Solutions Inc.