Krill oil producer Neptune posts record revenues

31-May-2010 - Last updated on 01-Jun-2010 at 16:56 GMT

Quebec-based Neptune Technologies & Bioressources has announced eight percent growth in revenues to reach $12.7m for its 2010 fiscal year ended February 28, 2010, including $12.6m for its nutraceutical business, despite the temporarily closure its krill oil production plant to boost capacity.

Commenting on company’s nutraceutical sector, vice president, administration and finance, André Godin said: “Revenues reached a record level of $12.6 million despite the impact of the plant shut down on the second quarter results. The plant shutdown and increased research and development investments and reduced EBITDA (Enterprise Value/Earnings Before Interest, Taxes, Depreciation and Amortization or Enterprise Multiple) levels for the fiscal year.”

Overall, net losses fell by 52 percent to reach a loss of $1.54m generating a consolidated negative EBITDA of $1.19m.

Nutraceutical business

Neptune’s nutraceutical business achieved an EBITDA of $688,000, compared with $1.51m during the same period ended February 29, 2009.

Upgrading the company’s omega-3 Neptune Krill Oil (NKO) facility boosted capacity by 50 percent. “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,”according to a company statement.

Neptune expects further increases in production will be delivered without more disruption to production. They will be financed mainly through grants, loans and/or partnerships.

Improved capacity at the plant will be directed towards serving existing and new customers including Bayer Healthcare.

The company expects its European business to grow following novel food approval for NKO from European Food Safety Authority (EFSA). Plus it expects PARNUTS approval which covers what EFSA terms "foods for particular nutritional uses", " dietetic foods" or " dietary foods.”

Coercive or unfair

Included in the company’s financial results is a Shareholder Rights Plan which became effective on May 26, 2010. Its purpose is to discourage what the company describes as “coercive or unfair,” takeover bids for the company.

It will provide the board of directors and shareholders with “…the time to fully consider any unsolicited takeover bid for the company without undue pressure, and to allow the Board to pursue, if appropriate, other alternatives to maximize shareholder value and to allow additional time for competing bids to emerge.”

Meanwhile, the company looked forward to growth in revenue and improved operating profitability during the next fiscal year.