Neptune Wellness (TSX: NEPT) (NASDAQ: NEPT) last night reported dismal third quarter financial results. The company saw revenues decline 88.4% on a quarter over quarter basis, with company posting revenues of just $3.3 million, with a gross loss of $8.9 million reported.
The poor revenues were blamed on a “strategic transition” that saw the company change its focus to that of consumer packaged goods from the extraction of hemp and cannabis. The result, is that the company reported just $3.3 million in revenue for the third quarter, as compared to $28.7 million in the second quarter.
One thing that remained unchanged quarter over quarter, is that the company posted a gross loss on a quarterly basis. Whereas last quarter the company saw a gross loss of $4.6 million, that figure grew to $8.9 million in the current quarter, even after subsidies of $0.9 million were factored in.
Things didn’t get any better from here, with the loss from operating activities coming in at $78.6 million. Contributing to this was selling general and administrative expenses of $31.6 million, impairments related to property plant and equipment of $2.0 million, impairments related to right of sue assets of $0.1 million, and impairments related to goodwill and intangibles of $35.6 million.
All told, the company reported a net loss of $73.8 million for the quarter.
Looking at the balance sheet, the company reported cash and cash equivalents of $32.2 million, as compared to $9.1 million in the previous quarter. Trade and other receivables meanwhile fell from $22.4 million to $19.1 million, while inventories fell from $21.6 million to $19.4 million. Overall, total current assets climbed from $56.7 million to $76.5 million.
Trade and other payables meanwhile fell from $16.2 million to $13.3 million, while loans and borrowings were flat at $3.3 million. Overall, total current liabilities were down slightly from $21.7 million to $19.1 million.
Neptune Wellness last traded at $3.53 on the TSX.
Information for this analysis was found via Sedar and Neptune Wellness Solutions Inc. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.