Tuesday, 31 May 2011

Another Banner Year at Neptune

Neptune Technologies & Bioressources
NTB - TSX V) (NEPT - NASDAQ)
Basic Shares: 48.2 million
Fully diluted: 53.9 million

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Neptune's Fiscal 2011 (Feb. 28th) saw record results recording a consolidated revenue increase of 32% over the previous year by bringing in $16.6 million, compared to $12.6 million in F2010.


That achievement came despite currency losses due to the surging Canadian loonie against the U.S. dollar. That hurts when roughly 60% of Neptune`s sales are in U.S. dollars.

But as management said in releasing its year end and fourth quarter results, it is addressing the currency issue by persuing markets in Asia and Europe where currency differences aren't as sharp.

"...We increased our revenues by more than 30%, which represents our best performance in the past five years," said Frédéric Harland, Neptune`s Finance Director. Neptune`s main business is on the nutraceutical side and those numbers were impressive given that:
  • Nutriceutical revenues rose 33% compared to the same period last year to hit $16.7 million;
  • EBITDA from nutracueticals shot up 326% over last year to reach $2.9 million;

  • Net income on the nutracuetical side climbed 513% over the previous year to reach just over $2 million.

The only flat note in Neptune`s fiscal performance came in the fourth quarter with consolidated revenues falling 11.5% from the record-busting 2010 fourth quarter. Revenues were $4.1 million in last quarter of fiscal 2011, compared to the stellar revenues of over $4.6 million in Q4, 2010.

We asked management about Q4, 2011 and it said while sale quantities were up, revenue was negatively affected by over $400 thousand in the currency loss brought on by the rising loonie.

The income ledger for the final quarter was also adversely affected for the above reason and higher-than-normal legal fees due to Neptune`s ongoing litigation against companies allegedly infringing on Neptune`s patents or competitors improperly using Neptune`s proprietary research.

"We are extremely pleased with the fiscal year outstanding results, in spite of the Nutraceutical business results for the three-month period ended February 28, 2011 that were negatively affected by non-recurring professional expenses," said André Godin, Neptune`s CFO.

To view the full news release, please click here.