Neptune Reports Fiscal Second Quarter 2023 Financial Results

1.7 min readPublished On: December 16th, 2022By

LAVAL, QC, Dec. 16, 2022 Neptune Wellness Solutions Inc. Today announced its financial and operating results for the three-month period ending September 30, 2022.

Neptune recorded second quarter revenue of $12 million driven largely by Sprout, our organic children’s food brand, which consistently shows revenue growth year-over-year and today remains a top five organic baby food brand currently outperforming the category in sales growth. In nutraceutical products, Biodroga achieved $3.2 million in revenue in the second quarter of fiscal 2023, a decline of 22% from the quarter ended September 30, 2021, primarily due to shipment timing.

Despite having mostly exited the cannabis business in the second fiscal quarter (the sale of the cannabis assets was closed on November 9, 2022) the Company saw only a small reduction in sales due to the strong performance of Sprout, up 19% year-over-year.

Second Quarter 2023 Financial Highlights:

  • Net sales for the fiscal second quarter 2023 revenue totaled $12 million, down from $12.5 million for the same period last year.
  • Gross profit in fiscal second quarter of $1.1 million compared to a gross loss of $(1.2) million for the same period last year.
  • Net loss of $37.3 million for second quarter compared to a net loss of $12.1 million in the prior comparable period in fiscal 2022.
  • Gross profit margin of 9.2% for fiscal second quarter compared to (9.4)% for the same period last year.

Second Quarter Events and Business Highlights:

  • Post quarter end, completed the divestiture of the cannabis assets, including the Sherbrooke plant and the Mood Ring and PanHash brands.
  • Announced amendment and expansion of Sprout secured promissory notes led by Morgan Stanley to expand the facility from US$22.5 million to a maximum of US$37.5 million and additional notes received of $3.25 million in the second quarter.
  • Sprout Organics distribution coverage increased to 90%.
  • Organic children’s food products in 27,337 doors vs 19,756 doors a year-ago, a 38% increase.
  • Expanded into new product categories into Up-Age meals beyond the Baby Food Aisle. 

    The Company will host a conference call at 4:15 p.m. (Eastern Time) on Friday, December 16, 2022, to discuss these results.

 

(This information is primarily sourced from Neptune, Inc.  Highly Capitalized has neither approved nor disapproved the contents of this news release. Read our Disclaimer here).

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Newsteam at Highly Capitalized are some of the most experienced writers in cannabis and psychedelics business & finance. We cover capital markets, finance, branding, marketing and everything important in between. Most of all, we follow the money.

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