Neptune revenues rise 165%17 Oct 2016
Neptune has reported revenue a year-on-year revenue increase of 165% to $11.6 million, with gross margin on sales rising to 20.4%, compared with 14% last year. Net loss was $668,000 for the current quarter.
Neptune has reported revenue a year-on-year revenue increase of 165% to $11.6 million, with gross margin on sales rising to 20.4%, compared with 14% last year. Net loss was $668,000 for the current quarter, versus a net loss of $1.9 million in the prior year."We are very happy to report substantial year over year revenue growth and also a sequential increase in revenue over the first quarter of Fiscal 2017," stated Jim Hamilton, President and CEO of Neptune. "These results reflect continued progress in our transformation into a provider of great nutrition solutions for optimal health and wellbeing.""Growth in the second quarter and the successful evolution into a nutrition solutions provider reflect the contribution of both our Biodroga turnkey solutions and our specialty ingredients business. Turnkey solutions now amount to approximately 55% of revenue and we are targeting an average annual growth of 20% over the upcoming years. Furthermore, our specialty ingredients business has now recorded its first sale in the Chinese market, while we realized the first sales from our newest specialty ingredient, MaxSimil. We are very enthusiastic about MaxSimil and have secured expanded worldwide distribution rights to fully capitalize on its market potential.""Subsequent to the quarter end, we were pleased to announce that we have entered into a broad patent cross-licensing agreement with Aker Biomarine, thus ending all outstanding litigation. The settlement provides Neptune with $6 million US in net royalty payments, which will strengthen the balance sheet and enable us to further invest in and grow wellness solutions.""Our growth and diversification strategy has continued to gain momentum. As a result, we have revised our annual revenue guidance for Fiscal 2017 and now expect revenues of above $45 million (from $43 million) and continue to anticipate a double-digit Adjusted EBITDA margin."
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