Revenue Exceeds Pre-Announced Range for Q1,
And Grew 83% Sequentially Versus Fourth Quarter
Announces Strategic Review To Accelerate Path
To Profitability
LAVAL, QC, Aug. 12, 2021
/PRNewswire/ - Neptune Wellness Solutions Inc.
("Neptune" or the "Company") (NASDAQ: NEPT) (TSX: NEPT), 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.
Conference Call Details
Neptune will host a conference call with management on
Thursday, August 12th at
10:00 AM EDT. The call will be
webcast and can be accessed at
www.investors.neptunewellness.com. To listen to the live
call, please go to the website at least 15 minutes early to
register, download and install any necessary audio software. The
webcast will be archived for approximately 30 days.
The unaudited condensed consolidated interim financial
statements of Neptune Wellness Solutions Inc., which were prepared
in accordance with IAS 34, Interim Financial Reporting of
International Financial Reporting Standards ("IFRS"), on a basis
consistent with those accounting policies followed by the
Corporation in the most recent audited consolidated annual
financial statements, and the management discussion and analysis
report for the three-month period ended on June 30, 2021 have been filed on SEDAR at
www.sedar.com and on EDGAR at www.sec.gov/edgar.shtml, and may
also be found on our investor relations website at
www.investors.neptunewellness.com. All amounts are in
Canadian dollars except if specified otherwise.
Non-IFRS Measures
This news release contains a non-IFRS measure, specifically
Adjusted EBITDA. We use Adjusted EBITDA to provide investors with a
supplemental measure of our operating performance and thus
highlight trends in our core business that may not otherwise be
apparent when relying solely on IFRS financial measures. We
believe that securities analysts, investors and other interested
parties frequently use non-IFRS measures in the evaluation of
issuers. Management also uses Adjusted EBITDA in order to
facilitate operating performance comparisons from period to period,
prepare annual operating budgets and assess our ability to meet our
capital expenditure and working capital requirements. Adjusted
EBITDA is not recognized, defined or standardized measures under
IFRS. Our definition of Adjusted EBITDA will likely differ from
that used by other companies (including our peers) and therefore
comparability may be limited. Non-IFRS measures should not be
considered a substitute for or in isolation from measures prepared
in accordance with IFRS. Investors are encouraged to review our
financial statements and disclosures in their entirety and are
cautioned not to put undue reliance on non-IFRS measures and view
them in conjunction with the most comparable IFRS financial
measures. For more information on our Adjusted EBITDA, please refer
to our Management Discussion and Analysis for the quarter.
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/.
Disclaimer – Safe Harbour Forward–Looking Statements
Forward-looking statements contained in this press release
involve known and unknown risks, uncertainties and other factors
that may cause actual results, performance and achievements of
Neptune Wellness Solutions to be materially different from any
future results, performance or achievements expressed or implied by
the said forward-looking statements.
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.