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Saturday, May 28, 2022
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.

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Neptune reports Q3 revenue up 17% to $18.4M, net loss of $21M

Taking a recent majority stake in a baby food maker, Neptune joins other pot firms expanding broadly into different CPG categories

Neptune reports Q3 revenue up 17% to $18.4M, net loss of $21M
Photo via Neptune Wellness

Canadian producer Neptune Wellness Solutions Inc. (TSX: NEPT) (Nasdaq: NEPT) continues to make incremental gains in its quarterly revenue, but the growth of its large debt pile is steady as well.

On Thursday, the company published its earnings results for the three months ended Dec. 31, with revenue up 17 per cent to $18.4 million over $15.7 million last quarter — marking the fourth quarter in a row of sales growth.

But the firm also reported a net loss of $20.9 million, following a loss of $14 million last quarter.

Adjusted earnings before interest, tax, depreciation and amortization fell 3 per cent to a loss of $9.8 million.

Neptune ended the quarter with $16.6 million in cash.

Read more: Neptune Wellness reports 3rd straight quarter of revenue growth

During the quarter, the company said it implemented cost-cutting initiatives, while improving supply-chain efficiencies for Sprout Foods, a plant-based baby food maker that Neptune acquired majority interest of in February.

It also launched Mood Ring pre-roll products in Ontario and Alberta, as well as vapes nationwide.

In October, the firm secured a U.S. patent for a low-temperature cannabis extraction method.

Over the past year, management has worked to transform Neptune into a high-growth consumer-packaged-goods company, president and CEO Michael Cammarata said in a statement.

“As we look ahead, we will continue to focus on controlling our costs while executing on our high-growth opportunities within our food and beverage, cannabis, and personal care and beauty brands.”

Company stock traded around US$0.38 Thursday on the Nasdaq. Neptune is on notice to lose its listing on the exchange on Feb. 28 if its share price doesn’t reach US$1.00.

 

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