Neptune Wellness Solutions Inc. (NASDAQ: NEPT) (TSX: NEPT) announced its financial results for the fourth quarter and full-year ending March 31, 2022. The fiscal fourth-quarter revenue totaled $11.5 million, an increase of 147% versus $4.7 million for the same period the year prior. However, it was a big drop from the company’s fiscal third-quarter revenues of $18 million. Neptune also trimmed its fourth-quarter net loss to $36.2 million versus a net loss of $43.5 million for the same quarter in 2021.
Neptune reported that its fiscal year 2022 revenue totaled $48.8 million, an increase of 37.8% as compared to $35.4 million for the same period the year prior. The company also cut its fiscal year 2022 net loss to $84.4 million versus a net loss of $124.3 million for the fiscal year 2021. The company noted that it announced further reductions in corporate overheads by expanding in-house legal capabilities.
The company had announced in June that it was launching a new Consumer Packaged Goods (CPG) focused strategic plan to reduce costs, improve the company’s path to profitability and enhance current shareholder value and that it was also selling its Canadian cannabis businesses. The sale of the cannabis business includes the sale of the Mood Ring and PanHash brands, along with the company’s Sherbrooke, Quebec facility, in one or more transactions. The value of the facility was recently appraised at C$21 million by a third-party appraisal company. In order to accelerate its cost savings, Neptune said that the divestiture of this business will result in savings of $4.4 million.
“Neptune made significant progress on our path to become a pure-play CPG company, with growth year-over-year and positive momentum in our key focus areas of Sprout and Biodroga during the fourth quarter. We expect this trend to continue into our fiscal 2023, with both Sprout and Biodroga continuing to expand their existing popular product offerings, as well as releasing new product lines that cater to different customer groups.”
“Neptune’s management and Board have made several strategic decisions recently that we believe are in the best interest of the company and its shareholders. In particular, significant cost saving initiatives, the planned divestiture of our cannabis business, and a refocusing of resources on our renewed mission of becoming a leading CPG company. In addition, we have continued our strategic review to help identify further synergies and cost savings. We are looking forward to the next phase for Neptune as we seek to capitalize on our large target addressable markets of personal care & beauty and organic food & beverages, which we believe have the most exciting growth potential. We remain steadfast in our goal to deliver on profitability and shareholder value.”
The company also noted that it has been granted a 180-day extension by NASDAQ in order to meet the minimum bid requirement.