LAVAL, Quebec— Neptune Technologies & Bioressources Inc. (NASDAQ:NEPT, TSX.V:NTB) released its 2010 fiscal (FY10) financials for the period ended Feb. 28, 2010. General revenues were up 8 percent to $12.7 million, an increase also seen in the nutraceutical business, which posted $12.6 million in revenues for FY10. Consolidated EBITDA was negative $1.19 million, although net loss decreased by 52 percent to a loss of $1.54 million. Earnings in the nutraceutical business reached $340,000 for FY10, compared to a net loss of $2.28 million for FY09. The fiscal results were similar to those posted for the fourth quarter of 2010 (4Q10), in which revenues hit a record $4.66 million, compared to $3.77 million for 4Q09.
“Revenues reached a record level of $12.6 million despite the impact of the plant shut down on the second quarter results,” said André Godin, vice president, administration and finance. “The plant shutdown and increased research and development investments reduced EBITDA levels for the fiscal year. We expect growth in revenue and improved Neptune operating profitability during the next fiscal year.”
In fact, while the shut-down of the plant to increase production capacity did affect the financial results, the outcome has been a 50 percent capacity increase for Neptune’s NKO®. Yearly production capacity of NKO is above 100,000 kg, with plans to increase to up to 130,000 kg by the end of 2010. The capacity will serve its existing and new customers, a roster that now includes Bayer Healthcare; European Food Safety Authority (EFSA) novel food and PARNUTS approval of NKO should also expand business in Europe.
The company also announced the establishment of a Shareholder Rights Plan, effective May 26, 2010, to allow the board of directors and shareholders time to consider any takeover bids and explore other competing offers. According to the company, the plan is intended to discourage “coercive or unfair take-over bids,” and is not a response to any pending proposal. The plan must be approved by shareholders at its June 22, 2010, annual meeting.
