Neptune Wellness Expects YoY Growth In 2021 Preliminary Report

Neptune Wellness Solutions Inc. NEPT NEPT, a Canada-based cannabinoids extraction company, disclosed Thursday its preliminary financial results for the 2020 fiscal year and what it expects in 2021.

The company expects the year ending March 31, will yield a revenue of roughly $28 million to $29.6 million versus $24.4 million in the previous fiscal year.

The year-over-year change in revenue is a result of Neptune's acquisition of Sugarleaf in July. The purchase of North Carolina's cannabis supplier is anticipated to add up to about $150 million in revenue over three years.

The company also expects to have a negative gross profit between $500,000 and $2 million over the 2020 fiscal year, attributing it to start-up costs related to the company's cannabis operations.

The 2020 fourth quarter estimations suggest the company will report revenue of $8 million to $9.6 million, compared to $5.7 million it recorded in the same quarter of the prior year, which is a growth rate ranging from 40% to 69%.

The first quarter of the next fiscal year is expected to generate a revenue ranging from $18 million to $22 million.

The quarterly milestones, which sparked growth in revenue, include the introduction of hand sanitizers and Neptune Air non-contact thermometers; the launch of new brands Forest Remedies and Ocean Remedies; and various changes to the company's management, operations, and sales departments.

Last month, the company teamed up with Jane Goodall, the primatologist and anthropologist, to develop plant-based hand sanitizers, essential oils, and hemp-derived products.

Neptune plans to report its financial results for the period ended March 31, 2020, on June 10 following the market close.