Neptune projects continued growth on the heels of recently announced earnings increases and record revenues Print E-mail
By Staff and Wire Reports   
Friday, 01 June 2012 04:27
Shares of Neptune Technologies and Bioressources Inc. (Nasdaq:NEPT) (TSX:NTB.TO) erased earlier losses to close slightly higher on Thursday; prior to a conference call and webcast for investors.

During the call, management for the Canadian based firm reviewed details about their recently announced record earnings and increases in revenues. In addition, they informed the market that they anticipate continued growth as manufacturing, production and commercialization capacities for their nutraceutical, pharmaceutical, and cosmetic products derived from marine biomasses are forecasted to continue.

Current production capacity is 150,000 kg/year and it will increase to 300,000 kg/year at the completion of a Phase I project scheduled to complete during the first quarter calendar 2013.  Officials said that capacity is expected to increase to 500,000 kg/year at the end of Phase II a year later.

The Firm's Sherbrooke Plant will be in a position to support approximately $80 million in sales per year, at the end of the expansion, starting in 2014.

"Neptune reported a record $19 million in revenue for the fiscal year ended February  29,  2012. This represents an increase of 15% compared to fiscal 2011 Neptune also reported an increase in revenue of 32 % in Q4 2012 from Q4 2011," said Henri Harland, CEO & President of the company.

"The increase is attributed to our worldwide key distribution partners as well as the rollout of our NKO and EKO krill oil across the United States.  In the production front, Neptune has reached a new high of 140, 000 kg per year in 2012 and has maintained its gross margin above 50 %."

"I am pleased to report that on the nutraceutical side of the business Neptune recorded a net income of $2.4 million compared to $1 million last year.  The consolidated group, including Acasti Pharma and NeuroBioPharm resulted in a loss of $4.6 million due mostly to the subsidiaries' R&D programs, including the two Phase II clinical studies by Acasti Pharma.

Neptune reported that their consolidated working capital is currently over $24 million and since Neptune nutraceutical business is profitable, that they have sufficient fund to support all their activities and projects.

Since January 1st, shares of the company are trading +28.42% higher.

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