Neptune Wellness Sees Revenues Crater 88.4% Quarter Over Quarter

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.

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