Monday, 25 June 2012

Additional Clarification On Neptune's Announcement Of $25 Million In New Orders


Neptune Technologies & Bioressources
TSX: NTB - NASDAQ: NEPT
Basic Shares: 48.2 million
Fully diluted: 53.9 million
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Last Thursday (June 21), Neptune announced $25 Million in new orders for calendar 2013. At that time, The Howard Group committed to obtaining additional details from Neptune management as follow-on questions arose from the news release. Please see below:

  • The majority of the revenue will be recorded in F2014, which starts March 1st with the remainder in early F2015. The exact breakdown is still to be determined as is whether or not some of the new orders will find their way into the current F2013 year.
  • Details about phase 3 of the Sherbrooke, Quebec plant expansion are in the planning stages and will be announced once finalized. Previously, NTB management publicly discussed a phase 2 expansion that would take annual krill oil production capacity to 500,000 kg/year and generate potential annual sales of $80 million. The timeline for completion was during 2014. This recent news suggests a  greater expansion but additional details are not yet known.
  • The $25 million in additional projected sales consists of orders from a major group in Asia, Europe (from the Vitafoods conference in May) and its North American distributors.
  • Joint Venture partner, SKFC was not involved with the order from Asia.

In F2012 (ended February 29) Neptune reported just over $19 million in revenue.