Neptune Reports Q2 Fiscal 2021 Results: Revenue Up, Profits Down

Neptune Wellness Solutions Inc. (NEPT), a constituent in the munKNEE Pure-Play Pot Stock Index, is simultaneously focused on B2C and B2B customer-oriented brand development to provide the Company with international reach and scale from its owned and operated facilities that extract and create product formulation, all the way to the sales floor at top global retailers. Today it reported its Q2, 2021, financial results for the period ended September 30, 2020, as follows:

Q3 Financial Highlights (All results are presented in Canadian dollars and compared to the previous quarter.)

• Revenue: increased 155% to $28.7M
• Gross Profit (Loss): decreased to $(4.6)M from $3.3M
• Gross Margin: decreased to (15)%
• Adj. EBITDA:  loss reduced 39.4% to $(12.9)
• Profit (Loss) per Share: $(0.20)

Q2 Operational Highlights

• began executing a plan to dramatically expand its global distribution network to the point where revenue from its Consumer Packaged Goods distribution will exceed 70% of total revenue in Q3.

Management Commentary

Michael Cammarata, Chief Executive Officer, said: 

• ..."The investments and operating efficiencies we implemented in the first and second quarters of fiscal 2021 and will continue to make in the third quarter of 2021, have us well-positioned to begin realizing the tremendous revenue from our purchase orders to come.  These orders, combined with the growth of our other areas, will drive profitable accretive growth with limited incremental capital investment, ultimately driving higher margins and higher returns..."

Dr. Toni Rinow, Chief Financial Officer and Global Operating Officer added:

• ..."Moving into the back half of fiscal 2021 we are sufficiently capitalized and well-positioned to deliver on growth in purchase orders in Q4, 2021, and as we move into the first half of fiscal 2022."

Stock Performance

Neptune Wellness is DOWN 30.5% in price YTD and has declined 9.5% since the end of September and virtually unchanged so far in November as illustrated in the chart below.