LAVAL, Quebec—Phospholipid ingredient supplier Neptune Technologies & Bioressources Inc. (NASDAQ:NEPT) reported a decline in first quarter (1Q) fiscal 2010 revenues and earnings, but announced the new plant opening that affected these results is now operational and on its way to the targeted increased capacity.
Sales in 1Q slipped 8 percent to $ $2.88 million, from $3.13 million in the same quarter of last year. Net earnings dropped to a loss of $1.41 million or $0.04 per share, compared to a net loss of $1.28 million or $0.03 per share in 1Q the year prior. Results were negatively affected by a planned temporary shut down of the company's Sherbrooke, Quebec plant during the integration of new equipment and other improvements to increase production capacity. Neptune management reported the plant expansion process has now been completed and the manufacturing plant is currently scaling up its production to the new capacity expected to exceed 90,000 kg annually.
Despite the challenges to the 1Q numbers, Neptune noted Neptune Nutraceutical, , turned in positive 1Q EBITDA of $36,000. These gains excluded Acasti Pharma and NeuroBioPharm, whose increased R&D expenditures helped drop consolidated EBITDA for the whole company to a loss of $284,000, compared to positive EBITDA of $270,000 the year prior.
In addition to the financial results, Neptune reported its board of directors welcomed a newly appointed member, Jean Claude Debard, president of Hyundai Automobile France. Neptune management said it hopes to benefit from Debard's experience, knowledge and network, particularly relative to the upcoming geographic expansion in Europe following the recent Novel Food notification.
