Neptune has announced its financial and operating results for the third quarter ended November 30, 2016. Revenues reached $12.3 million, up 122% versus last year for what its CEO described as its "best quarter ever."
Neptune has announced its financial and operating results for the third quarter ended November 30, 2016. All amounts are in Canadian dollars.Revenues reached $12.3 million, up 122% versus last year. It was, the company said, the best quarter in terms of krill oil sales volume in the last four years. Gross margin on sales rose to 25.9% compared to 23.8% last year"For the third quarter, we're excited to announce our best quarter ever,” said Jim Hamilton, Neptune's President and CEO. “This quarter also marked significant year over year, as well as sequential, revenue growth. Additionally, we are pleased to have reported a settlement agreement during the quarter ending all litigation with Aker Biomarine, proceeds from which we will see over the next 12 months."The specialty ingredients and Biodroga turnkey solutions businesses both performed well with more than 20% organic growth. In the specialty ingredients business, the addition of new customers and repeat sales at higher volumes from our existing customer base occurred. In the turnkey solutions business, an operational study has been completed and a new structure and operating processes to capitalize on great potential demand is now being implemented. Our objective is to grow this area by an average of 20% annually moving forward. Moreover, new revenues from NKA, our feed ingredient product, as well as from MaxSimil were recorded."To reflect the change in our fiscal year-end, which will be comprised of 13 months, we now anticipate Fiscal 2017 revenues, excluding the settlement royalty with Aker Biomarine of $13.1 million, at approximately $48 million (from prior guidance of $45 million) and continue to anticipate double-digit Adjusted EBITDA margin," concluded Hamilton.