Wednesday, 16 October 2013

Neptune 2nd Quarter Conference Call – Are The Stars Aligning?

Neptune Technologies and Bioressources 
TSX: NTB – NASDAQ: NEPT 
Basic Shares: 60.0 million 
Fully Diluted: 67.5 million
**************************************

Just before the market opened this morning, Neptune management hosted its 2nd Quarter Investor Conference Call. On the call, Neptune CEO Henri Harland acknowledged that its Sherbrooke manufacturing plant is expected to be completed by the end of this fiscal year (Feb. 28, 2014). Once completed the capacity will be 150 MT and the company is currently evaluating plans for further expansion. He also discussed Neptune’s recent licensing and supply agreement (800 MT over three years) with Rimfrost. During the Q&A management acknowledged investors will see royalty payments from this agreement showing up in the coming quarters. During the financial overview Andre Godin provided a very interesting overview of the margins for the neutriceutical side of the business. He said that the margins from the resold krill oil have steady improved over the past three quarters.Q4-2013 – 5%; Q1-2014 – 10%; Q2-2014 – 12%.

An archived version of the conference call is currently available on Neptune’s website. Click here to listen - http://www.media-server.com/m/p/nayp846h