Neptune Wellness Reports Higher Net Loss, Negative Adjusted EBITDA, Says It Had 'The Most Challenging Year'

Neptune Wellness Solutions Inc. NEPT NEPT posted its first-quarter and full fiscal 2021 earnings results Wednesday, reporting quarterly revenue of CA$6.8 million ($5.41 million), compared to CA$9.5 million in the same period of fiscal 2020.

Quarterly Highlights 

• Revenue was 127% higher compared to the third quarter of fiscal 2021, which amounted to CA$3.3 million;
• Gross profit was a loss of CA$24.8 million, versus a gross profit loss of CA$1.1 million in the comparable quarter of the prior year;
• Total net loss for the quarter reached CA$60.3 million, which compares to a net loss of CA$39.2 million in the same period of fiscal 2020;

Adjusted EBITDA was a loss of CA38.2 million, compared to an adjusted EBITDA loss of CA$5.8 million in the comparable quarter of the previous year.

Fiscal Year Highlights 

• The fiscal year 2021 revenue amounted to CA$46.8 million, up by 58% from CA$29.6 million in the fiscal year 2020; 
• Gross profit loss was CA$36.2 million versus a gross profit loss of CA$1.8 million for fiscal 2020;  
• Net loss was CA$168.6 million, which compares to a net loss of CA$60.9 million for the prior fiscal year;
• Adjusted EBITDA loss was CA$52.7 million, which compares to an Adjusted EBITDA loss of CA$19.9 million for the fiscal year 2020. 

"Fiscal 2021 was the most challenging year in Neptune's history due to the global pandemic and our transformation into a diversified, health and wellness CPG company," Michael Cammarata, president and CEO of Neptune Wellness stated. "As indicated in our first-quarter revenue range of $10 to $12 million, we are now positioned to accelerate top-line growth and leverage costs. Neptune will continue driving organic brand growth through increased distribution and innovation, complemented by strategic, accretive acquisitions, which should lead to improved margins, and ultimately outsized shareholder returns longer-term."

The company’s management projects the first quarter of fiscal 2022 revenue to be within a range of CA$10 to CA$12 million, representing 47% to 76% growth from the previous quarter.

Recent Business Milestones 

• Neptune reached an agreement with Société québécoise du cannabis, a retailer of adult-use cannabis in Quebec, for the sale of recreational cannabis products under the PanHash brand;
• Obtained amended license by Health Canada for the sale of dried cannabis flower and pre-rolls;
• Developed and licensed CoQ10-enhanced and CBD-enhanced fish oil supplements;
• Acquired majority stake in Sprout Food;
• Raised gross proceeds of US$55 million in an equity offering.

Price Action

Neptune’s shares closed Thursday’s market session 1.83% lower at $1.07 per share.

Photo: Courtesy of Jeff W on Unsplash