Krill oil boom: Neptune reports 32% revenue increase for FY2011

By Stephen Daniells

- Last updated on GMT

Related tags United states dollar

Krill player Neptune Technologies & Bioressources has reported a 32 percent increase in revenues for the full year 2011, but a weak US dollar has impacted the final quarter.

According to the company’s results for its nutraceutical business, EBITDA for the financial year rose by 326 percent to $2,934,000, up from $688,000 the previous year.

"Revenues reached a record level of $16.6 million despite the impact of the increasing competitiveness of the market and the negative impact on revenue from the strength of the Canadian dollar versus the US dollar,” ​said Frédéric Harland, Director Finance.

“Nevertheless, we increased our revenues by more than 30 percent, which represents our best performance in the past five years,"​ he added.

Q4/2011 versus Q4/2010

Results from the most recent quarter, however, took a hit from a strong Canadian dollar versus the US dollar, with EBITDA for the three-month period ended February 28, 2011 posted at negative $135,000, compared to $775,000 the previous year.

In an email with NutraIngredients, Harland explained that, in terms of quantities sold, the company sold “a lot more [krill oil] than the year before”.

“The devaluation of the USD currency had an impact of $400k to $500k and keep in mind that Q4/2010 was our best ever quarter,” ​added Harland.

The company launched the new ECO Krill Oil-EKO at Health Ingredient Europe 2010 in Madrid. The product is reportedly similar to the established NKO ingredient but with slightly lower specifications and a lower selling price.

“We also have reduced slightly our NKO pricing to be more competitive and sold a little bit more EKO (lower price to NKO, same margin),”​ said Harland.

"This year's consolidated profitability is a major achievement considering the Research & Development expenses incurred by Neptune, NeuroBioPharm and principally by Acasti with the development of its drug candidate, CaPre,''​ added André Godin, CFO.

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