NEPT.TO - Earnings call transcript Q4 2021 | Neptune Wellness Solutions Inc.

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Operator

Good afternoon, ladies and gentlemen, and welcome to the Neptune Wellness Q4 Conference Call. [Operator Instructions] This call is being recorded on Thursday, July 15, 2021. I would now like to turn the conference over to Steve West. Please go ahead.

Steve Wayne West

Thank you, operator, and good afternoon, everyone. are Rinow, President Operating Chief afternoon Officer; Chief Officer. this Toni and Financial me Michael and Cammarata, Executive With and Global

laws. dollars, and do as statement, be of As are and any may contain amounts forward-looking all to today U.S. any information and change. required obligation subject Canadian update We forward-looking expectations a may may undertake our by except our discussed representing securities as be Canadian remarks not reminder, in today to

made these out subject our SEDAR preparing were to risks public on are Assumptions statements, which in forward-looking found as in and laid EDGAR. filings

to Before say all investors and With to I'm over of Michael. our Michael, that, to officially soon. now turn I to to just forward be over part like and turning the meeting the excited team, call the analysts I call Neptune will would look I

Michael Cammarata

Thank you, good everyone. Steve, afternoon, and

value I packaged proud company excited consumer and our you relationship of officially everyone, my Holdings, Street slow-growth BXB for both to family begin strategic with nutraceuticals, and a the to selling program. are new the Bread, and of proven met Steve lasting expansion contributed growth diversified and of industry. create in a Acreage XX-year-old good of approach to low-margin, introduce to in Investor market. value. a want partnerships, U.S., restaurant investor acquired streamlining organic long-term businesses challenges a I welcome At him focused a health company those analyst established We transforming challenging know MSO branded and positive world-class already year a which beauty personally operations products, I'm X to Relations. exited lead cannabis, the cannabis leading goal the cannabis prepare personal Canada The care. business X a Neptune, goal the has chain our took we as Steve as brands the in extraction Investor our rebranded with now up head legal to at We've Good records team wellness develop Neptune creating from professionally. to to our verticals. and assets about with sustainable global his brought and company, more, and to from prepared on, a our and pandemic change across Before DICK'S beverage, brands Panera scaling Officer margin a time the recently, Canadian Wall multipronged President We and extraction across Vice Many I'm We food remarks, on our full track moving Relationship to verticals: U.S. potential. new Sporting strong, of together XX% the delivering higher-margin our for shareholder both and

to well-being. We core consumer an to social highest decades medical are innovation with core and and products use do. our the created adult to eventually carbon negative packaged the far plant-based we and consumer everyday of carbon company. pioneering beyond environmental and good extraction, produce goods. are of accessible the with lives packaged values, and Neptune aspire product in and Today, neutral standards chain experience have consumer of is everything cannabinoids Through we innovation be other our and our leveraging go ingredients central at goods that super better-for-you innovative widely building We supply nutraceutical on and and

wellness to Quite At drive we opportunities become our by to our higher a grow long-term align to continue same that M&A creating purpose you, eventually single good everyday and products new will simply, and verticals to by large margin time, explore transform carbon-negative leading consumer continue goals. with with the across planet distribution brand, We strategic existing for a the lifestyle packaged good portfolio health company organically prepared and for brands the driven carbon-neutral of our Our unique sales. to the to for suite plant-based, our expand vision is multiple consumer markets a all-natural, leveraging tap a partnerships our are will of innovative globe. and brands good into strategic healthier tomorrow across

verticals. Mood products oil to developed recently CBD I to launched we our successfully Ring cannabis leveraging vertical, reflect turn We call CBD roots review, you heritage. want extraction of over financial our the I brands. PanHash a was PanHash update our and Now capsule have there, Toni launched and business and her high our for to our experience. Quebec In few on before our

very early, still has of in sales been feedback response the encouraging. very and terms initial While consumer

other Ring, sold this in sales Alberta brand, to is Our cannabis British with in and Ontario currently Mood consumer begin Columbia plans summer.

and our Today, As legacy our Kush, with our including scratching and quarter and introduced Columbia, are capsules, oils British total additional Ring Florida PanHash, followed the we flower Mood experience, we branded ever product. After initial our by in product just our the of service products products THC assortment Ring bringing full Mood to X product, both hash ended, CBD extraction potential. our in first Citrus X leveraged SKUs.

market. products XX% the summer, products licensed existing And stores into our our Alberta will representing in consumers XXX to Canada's Today, XX% about access of legal we we total are X,XXX we this total in once sold selling be to. launch and about market. into selling are approximately legal about We have of markets of

stores addition factors. cannabis products and business have form ramping the of we new So high expectations continue as to new as well our through

company expanding Biodroga, delivery technologies omega-X division Moving with patented our nutraceuticals, MaxSimil, this exclusive through on like our focused are leading technology. we to nutraceutical

Biodroga's supplied customers. customer through new licensed These CBD-enhanced During have oil which oil the fish of be marketed supplement, well we as included base. quarter, supplement as our technology, our using MaxSimil developed and CoQXX-enhanced to supplements will both and fish X a

catalog U.S. by partnerships the we largest held our launching Additionally, extended line vitamin soft new in X product products. and have privately gel retailer with the

As milestone superior second clinical Furthermore, when of MaxSimil with showed are MaxSimil important of fish technology across even that leverage with study supplements CoQXX compares Press, first publication of in reached the ever absorption. other combined we study continue to MaxSimil oils a an versus Journal undergoing Nutrition other and we of the territories supplements and omega-X oil the this University we our efficacy fish in which new Oxford by efficacy against quarter, our and supplements. bioavailability

ongoing research with support will even the and long-term THC to We MaxSimil this of to impact carrier as oil We evaluate believe help KX, growth. groundbreaking curcumin have several vitamins, combined or other the when studies an CBD.

costs, gross our strategy Looking on chain profit return base, the on and capital. increased supply forward, to is margins higher and nutraceutical manufacturing lead growth focused our expansion should invested lowering production which of

clock plans, While our is the we're in to not globe new working nutraceutical around yet to a growth around our further profitable drive details group the position on and discuss growth.

Turning beverage. to and newest vertical, our organic food

all fiscal distribution end more rapidly Target across States we our to strong leading with food the to acquired After the packaged children's already consumer that licensing of have million expanding the plant-based United just We more network, global CoComelon all top in toddler show and interest was ended, subscribers by an alone of also an views done than entertainment on Towards XXX controlling on YouTube #X health acquired the Securing sales expansion was supports a is walmart.com. forward agreement kid's the with agreement no-brainer and worldwide. intent good exclusive with months. into CoComelon, YouTube. is consistently The and in grow within leveraging by we a diversification XX announced the to organic company. Sprout's with on license Sprout billion Sprout. achieved #X we genres entertainment a show and ranked dominant wellness exclusive baby our baby the our acquisition vision This world's few the than Sprout year, become quarter Netflix. and the snack also with plant company. food a XX

for have the children. North is for organic associate with are their targeting across believe and We We parents very Sprout our future to nutritious America purchased foods CoComelon bright. Sprout

have throughout we up front, Summing cannabis more have come. slow-growth exited While distribution significant there is made progress we marketing the on transition, and business to progress this extraction our much still X are preparing we in chain. share. to launch value upstream Ring and The market scale take the Mood brands, and expectations, our and cannabis of move to exceeded our have PanHash,

the our Sprout to I being am We with we through to have made retail with discuss company claims leveraged run globe. diversified technology with the supplements hemp extractor progress supporting to a possible. is rate results. call our acquisition BXB growth scale, new expansion with will where opportunities of Toni across significant a to are fully packaged clinical establish partnerships, our to and across come.Our strong say and turn from MaxSimil consumer now disruptive financial studies open to an good over proud transformed more cannabis I and full

Toni Rinow

Thank year-end everyone. and we reported fourth results. quarter good fiscal you, XXXX and Today, Michael, afternoon,

was the a $X.X food Our offset our XXXX, year-over-year million the $XX.X $XX.X decline was ago reported transformation year Sprout fourth Canada. by loss increased the million during million. exiting compared our branded in $X.X partially verticals, $X.X This which reported we increase of by of quarter the process.Gross revenue, in the our fiscal in through in new decreased business significant XX% quarter the quarter was but of the an reported profit a revenue lower-growth and million the consolidation our versus driven to our fiscal million, approximate partially year profit our growth reported packaged offset to diversified million BXC revenue versus launch XXX% of gross million. This reported fourth to increase of beverages due which addition about company, transformation $X.X businesses fiscal fourth of and period. third This revenue approximately quarter cannabis XXXX loss the $XX.X by by more including was comparable was consumer versus in XX% recent primarily was acquisition.For goods XXXX,

the $X.X offset million $XX increase to a the fourth year. year profit balance primarily $XX.X represents in the EBITDA diversified company, and gross CPG previous the loss loss of fair our quarter lower net during the for revenues as prior the partly the ended innovations the $XX.X SG&A discussed.Moving loss on loss an ago due decline EBITDA in combined $XX.X amounts is million cost to and comparable cash in The fourth from and As previously fiscal $XX.X decrease increase CAD the year were in vertical for due the million our is transformation loss of assets.Adjusted compared losses attributable to to profit we year. of an for year in in decrease million XXXX, loss and mainly EBITDA increase quarter new positive revaluation in versus declined sheet. $XX.X the the Michael gross sold versus offering our approximately for during amounted net was fiscal million the to to million cannabis adjusted ramping position on million in $X.X XX.X equity year mainly which the adjusted value attributable with to hand. which by expenses, brands.Net raised in to goods the year the period. declined in previous prior compared loss cash quarter million, impairment Gross to changes $XXX.X The with period. Net proceeds million to million, was The third We the quarter.

access our year.Before strength to Michael for position, over continue additional and discuss his capital for capital anticipate the do fiscal outlook for turning the raise to be to a a for to this wanted of cash not and overall back call sheet XXXX. concluding we Our I company, to need our remarks, the balance strength

efforts. While in XXXX. want in I fiscal to color to forward in I X U.S., want not which some sources as were help we modeling significant provide revenues, Thinking about to revenue guidance, Canada discussed, touch and exited on we do offer do your extraction items.First, the

will million started from are While with the we products our in products. so cannabis it Canada, ramping business said, expect take revenue branded our meaningful scratch, from businesses quickly $X the time we of about the of PPE, for protective of part part equipment, expectations to realize ahead global as significantly latter market year.Second, personal quickly or of global the exceeded of slowed in rate run supply a in the latter achieve very year month per last fiscal replaced That launch branded cannabis those and we demand. to

do we not with order result, a previously PPE. fulfill announced to expect As associated the purchase

the due smaller be in still the their our Additionally, is to orders initial associated the due of in again. We $XX XXXX, the the distribution given our first an expectations do will do $XX disclosure in we plan not quarter provided early U.S. range the preannounced quarter magnitude much delay for over, purchase agreement, quarter to timing of with revenue and fiscal to PPE million and exclusive be earnings delay to in outlook while million. to first viable, this nature.For fourth pre-announcements

transparency While continued the revenues to revenue million revenue significant long-term year-over-year fourth of improved expect returns. company $XX represents and recently manufacturing-related true motion in and we fully a IFRS rules reported growth transformation concluding we decline, accounting throughout noncash support new we reflection his beginning to improve our contribution margin. gross for the gross gross we transformation better believe will scale all call $XX line represent introduce we and to to year.Now distribution shareholder believe to our expense.For goods, a Michael? I in beverages. be a range impact quarterly XXXX, and hit reported with financials, it addition with cannabis excludes be included such we organic contribution non-IFRS let lead to fiscal the efforts, in took touch we product of support we branded This through.While margin, cost first back me quarter and the for a finally, does as gross generally which required as launches this And manufacturing-associated which margin. quarterly turn reporting has our corporate million the gross accelerating as we short-term our peers significantly validates remarks. our In continue will on expenses, and acceleration what margin, lap fiscal depreciation and food corporate expand to versus now to went amortization be gross margin to and to significant to a refer margin expect Michael provide and XXXX, IFRS will profitability, the sequentially a briefly on we economic to in expect require margin. negative will revenues

Michael Cammarata

Toni. Thank you,

we I've for Before the over which to the company some our strategy recent past opening some several transformations, the I are like of that of and have proud from changed direction recap questions, of times year. the call heard very the we would you of, and

wellness did to goal top a change more While I be understand that line sentiment, growth the ago. financial long-term Ultimately, remains or our same did management What how outlook. vision the around achieve years margins than improve it and today bleak and is returns. the the leading faced we and XX as health company significant our endure to decision team rapidly and were our likely drive with us, a Board as is evolve to goals.Just those changes world

some chains history than most size.To were more time global disrupted offer global in global insights, global War While II. so by since its our impacted, supply pandemic, all to was chains faced the of any us than pandemic unprecedented significantly more in arguably World an Neptune given exposure networks, with supply

in Additionally, the was extraction clear It that generate that shareholder to not focused Neptune value the was on a slow-growth, businesses. while could reality set low-margin race cannabis long-term bottom.

or by against our protective also helped it disruption spread of PPE, to was in supply brands.In So personal short-term States, moved the we up higher-margin, higher-growth and critical under conjunction business. felt the extraction both also focused upstream move and voids fight Neptune's sell to value the exited proprietary COVID-XX. we moving our quickly the United to manufacture on which diversify products fill Canada instead cannabis, the We global and in chain caused in to equipment chain businesses, in with

global brands future quickly suppressed While organic a beyond. by cautiously distribution the and for beverages, helped part continue Foods. our the innovating us of like from the into organic expanded strategic which global and which up We to of into see optimistic we can our in innovations contribute transition, ahead, retailers higher units team, to core demand purchases cannabis, the business.So our forward, foods to X supply PPE through growth verticals parent-influenced chain also we and fueled worst lead our significant growth I organic which the including caught world's beverages, entertainment opportunities and this move foods complete. such cannabis high-growth rapidly quickly the to into line on can groundbreaking year business future led Sprout us which a margins for is nutraceuticals, and acquisition exclusive distilled we can will We X.Neptune's should licensing lead food moving time.Looking executed be as These agreement top brighter believe to and have the less to prove come over Target pillars. with key X and and by will and transition our largely more growth be period in believe gotten and this the we with largest business driven children's also walmart.com show, continue than segment, to chunkier the beverage. revenue predictable remain much be will and other of diversify, returns.Our

as First, significant fixed costs; growth the acquisition line our with and secondly, acquisitions growth CoComelon and licensing driving partnerships complementing recent organic top agreement. strategy the Sprout and such leverage

returns world. the profitability over We improved company a lead built consumer have we pillars as good and the in that's ultimately will Neptune's to margins for future long optimistic about main modern be force the could a not good growth outsized expect and package term.I shareholder more

for questions. transition the growth for you amazing company work open line now wellness diversified packaged for Neptune may to for and consumer future.Operator, I health the company with foreseeable runways a Finally, our would like rapidly into thank to their the good multiple associates

Operator

Partners. question your Aaron Global first Grey from And from Instructions] Alliance comes [Operator

Aaron Thomas Grey

want store as to we of kind one for expectations longer those to growth do forward high-level within included the look the ask question of force think kind per we XXXX to looking kind be as first me. ranking is of of drivers. our recent no I fiscal year about a So kind with How expectations. forward

color Canadian, gave you well. Sprout some stations for good You now have as

million maybe So to when about what's if you you which year terms fiscal meaningful couple XXXX of the forward would be $XX for helpful. contribution? you in next driving some of the most color of be And the the in $XX do we opportunities growth going quarters, expect acceleration could in think think will about in the give and been quarter kind revenues how X million the

Michael Cammarata

and I'll a that the can in stab at take then rest. Toni fill

I Sprout forward. to think a obviously, QX be going contributor and is big in moving

then that think and our into Biodroga we're Toni as let and now that nutraceuticals color will SKUs. flower But high-volume supporting increasing business I'll cannabis and brands distribution are some that especially followed I give to be by their our that. more tapping

Toni Rinow

Michael. you, Thank

So and for -- the Aaron, thanks, question.

X businesses not revenue full are where on on growth And did a do the announcement Sprout an the it currently earnings understanding the of growth revenue or for But all we that release Those business the yes, to fiscal year the and earlier going. So QX mentioned press vertical you we trajectory. give we provide Michael February. are basis, announced for XXXX. neither provided core in was a when we in

a it annual gives for rate. the good you So run idea

Aaron Thomas Grey

helpful. That's Great.

So in adult bit in terms I'd to ask the opportunity love of a use. Canadian deeper little

SKUs. difficulty the adding into conversation flower terms on lot some Canada. a been in listed now, of getting in There's So new of SKUs in terms going more you mentioned of

can have. initial can that these listed some doing of within on sure you're to gotten But have or consumer. You to traction, the total get about in in XX% an success guys some to provinces make talk going of be get those the you you the sales things SKUs products you front shelf good you some have

Michael Cammarata

add little pick color of Toni I'll and then a bit up. to that can

of look think And Canada, a strand how of specifically different with year for are We the looking all really saw through. that they to business. were we I that weren't had the in purchasers, we have variations, in data they the same the especially cannabis unique. what seasonal that approach the round, lot very is and consumer to market, like looking is side flower they

want to and over have adopted waiting lower digestible experience can a feedback awards we instead that developers we're a how see about that. are And consumers how and and And little we we market hunt clinical bit treasure But and my give heard one they effect X like more some that's that now, rolling consumption, to SKU really at more where can So And the of approaching enter some his there'll a available with shorter I because that's of have as look us certain should territories you but but an the to out, of for specifically data adult they that strain a want that time. want have first and better they the different. you our and we're to get approach XX kind And program of a globally higher strains. experience very right they flower we digestible times. edibles and that amount more for MaxSimil limited who very period available minutes at the be -- a in for be is we product strains can XX development. opening potency we people kind talked great more in market experience a of and how edge exploring and looked remarks, area different different consumer an are minutes also to within starting good new won

out to unique and So R&D come we've researching our with have the we development the usage. we and and ones when about about felt their and impact we shelf. we biggest for many that our can SKUs SKUs and been in formats unique and many consumer wasn't at on what with have could brands want how especially Canada, that put how specifically we're looking the SKUs.It It's

rolling out seen starting our we've in offerings. how our competitors in We've very certain in seen great a already have success, adjust we adjust some Canada, to strategic we're to plan pricing capsules markets. their trying on especially and and So

-- And so the chunk and we're roll in just to but we're starting starting to beginning, out. take a good

So we to it when comes about have are really the business.We a flowers. different excited definitely cannabis approach

good. some vapes formats especially give comes have the unique And that I think with we've to that it -- made been are listening that feedback on have ground consumer getting other the with consumers the I having. the but consumer be potentially off We on our in making we've that coming and we'll the a to good X think that also entering because choice edge. on the the gotten background address that are strategic the the by and out us territories provinces when right and from of value really markets extraction that offerings we're will later and focusing bat, sure And problems to and the really

bit started to the already color. think the So something into is additional we're that market deploying consumer. going really add with And we a I think very connects little that competitive the And Toni can edge. I and have strategy be good unique deploying that's a and

Toni Rinow

Michael. Thanks,

all for we them. launched yes, about progressing market. we took products share, constantly. to now the gaining that proposed Quebec us, The we all and in So market And the of ramping it's are up SQDC and

took they SKUs X all. developed So we have and proprietary them

gaining share and Canada in So really, all other it's now provinces. about in market

Aaron Thomas Grey

Okay. Michael Great. Toni. helpful That's really color, and

squeeze in could I then. it Just one, last if one

gross on then. just profits So

just the when profit like But might number like forward. comment, profit today. to looks would reported be that think write-downs that gross that you was there positive it Toni, So get you some do going gross inflect impacted some

You going some talked saw greater forward. about success margin product we

just expectation? on So you any going believe forward? you I margins give inflect margin might gross what don't guidance specifically, that gross but usually have might know positive do you like

Toni Rinow

throughout Sure. this my growth Yes, I remarks, we in said margins are expect in time. gross as not financials point the year. But giving we or sequential prepared at guidance on other revenue

and fixed So believe margins we -- will to year-over-year our seen costs growth. over And sales. get And this could gross on to due think will improve be costs. we will leveraging that growth fixed I in certainly able leverage year-over-year also be

Operator

from Your next comes Gerald question Pascarelli from Cowen.

Gerald John Pascarelli

bridge to sequential surprised wanted not just around $XX I if guess trying I'm I million, in source a Canadian a I XX% XQ guide, was be The go the is summer. of to going And getting questions the it that. remarks one back XX% And acceleration, previous sorry revisit Just I to to a acceleration, that to the $XX hear in really at to contributor seeing. Aaron's least just the a it, to missed the is by in near commentary prepared term to do being the provides this that and but that in with I think not to included at guess different nice sequential market if we're cannabis of of midpoint. XX% I'm upside little million going be over cannabis I way.

about, you I expect the P&L come revenues more meaningful talk a these hit way? to in when cannabis-specific just can and guess, you So in

Michael Cammarata

jump Yes, and Toni then in. I'll color give some can that on

market. we're have out. we access and stores, X,XXX now, of right to XXX the So We're of to out continuing roll XX% in

overall grow. amount up when which continue amount the get the stores reporting we the we're in stores will in of to bit a and summer, volume. we will to to, the so it the increases Obviously, increase as a which that market, get lag in we access of because -- also recognition. XX% of selling from So the of it the behind we'll But can sales be lags data, little revenue POS cannabis comes there's the report to shipment

vapes it. big this And there yes, we is fully believers our into So business. even rolled upside out And we're is -- tremendous upside also really flowers. in cannabis before and

other we're any X going So I SKUs be we lot in expanding to there's can Toni, targeted a have, only if more the in color. obviously rollout, And areas. and have current

Toni Rinow

the Absolutely the out business ramping sell Whatever we different Yes. about cannabis Neptune, provinces. and up into pretty It's quarter-to-quarter. accelerating all much can buildup. from at rolling produce inventory we

out. just it it's about rolling So

products recognition, In these are terms new of for Neptune. revenue

provinces, different we product revenue not on based so that at the for time recognize in shipped being that recognition can So point sale. provinces final back, is guaranteeing are us at revenue a and buildup the the it's inventory

will it's to quarters this quarters XXXX. X be will Back So the you. fiscal recognition why to -- behind year X -- X shipments revenue for the

Gerald John Pascarelli

color. magnitude expected the declines call line to maybe growth in margin in the That's expecting. revenue quarter-over-quarter With margins, that of, with the helpful it, improve, you're with

offset look temporarily P&L, depressed to do what term? on there we -- near that SG&A at if maybe gross temporarily over depressed can to going anything there opportunity is cut the As down operationally seems line, like be what a the costs, a margin, the you to least it's is

Toni Rinow

Yes.

we So color Michael have the again, of on we're can fixed on we year. giving the revenue have can that some given guidance also ramping see But starting and/or not the growth cannabis. are and you levels on you with up of leverage mentioned gross, imagine, EBITDA for now the and operating QX, the And and that you this to Sprout we as with costs either sale, with -- CoComelon.

growth expect in verticals. our all we revenue So

we detailed on are for will over And we -- -- but this lead full giving guidance year the gross other more year. not improvement financial certainly data. to So have margin not the last

Michael Cammarata

is optimizing P&L also hasn't that fully the And cost that extraction the a inherent because we lot there's as off. of -- with been we've rolled business

in the want and that do, focusing moving definitely are on be as we focusing optimizing to growth on forward. of the those areas So we P&L

Operator

from next Instructions] [Operator from Your Chu Desjardins. John question comes

John Chu

was so. USD order as orders referring there a $XXX question wellness to on agreements X was which a agreement And specifically was Heinz. Unilever. and the the over subsidiary new last health and in $XX announced that that side, back just we back million XXX what one that that also conservative a then November, was order. that Kraft purchase and And to is million one my announced purchase There the were was some listed was range, with of assumed was was or in million -- third months and So first

can mean I those expect stand? give there what the we So just you any us COVID-related with if just an know of of those. protective no an And of touch if where those I on minimum idea can any were But PPE, all -- those? not, And to us from related you order give equipment? was status update to might

Toni Rinow

sure. Yes,

the nitrile global There announcement for available, literally were we orders, the make were so fast that was but $XXX These So were purchase to prices some with these endeavor regards mainly raising of gloves. Neptune. million. for inventory over a profitable this couldn't

sourcing than fulfill more around XXX the been have world, and these couldn't we suppliers around POs. we So

PPE challenge. moment, challenge that a we don't for believe we on those logistics the have can POs and So sourcing fulfill a side. we And the

John Chu

the of there what coming announcements Right. from on other Kraft any and anything, anything Heinz, potential those? there then regarding was was we that? Unilever -- thought with But revenue updates any Is

Michael Cammarata

Yes.

So because the heavily side. the into definitely that has have PPE products adapted one are Unilever did they some

it had our from Unilever focusing to that the to look long But view is of we're we're So Heinz. like that at point the to relationship. We're Unilever's balance focusing really wasn't and something one definitely shareholders sheet. not believing Kraft a drive what term. we on focusing biggest on -- return We're in of on anything regarding

risks out And agent or downs we things ups stay that had deliver of that so too and versus recognitions. of of wanted revenue principal couldn't to profitably we had dynamic much and

John Chu

Okay. that number? have that rate, now? is million month about, you an just more And you behind is you introduced can monthly cannabis SKUs year, to per that talk actually the just reach SKUs that that based you revenue run Or rate in to later regarding $X need this on What's guess? being expect have $X to there run X that then the assumption hit I million

Michael Cammarata

can that. It's on out Toni with but expanding, and into the detail go definitely more SKUs starting X

Toni Rinow

Yes. Yes. Yes.

and you So some to we cannabis color the revenue. on give -- wanted

want we much conservative. that, increase course, of business the SKUs. than be to So And to and but all we want will this grow include this aggressively more

the Quebec, which So the a all the in has SKUs of portfolio from provinces. separate in rest SKUs the

John Chu

I Okay. Sprout. And last for question -- guess the then on

had million annualized revenue they $XX you like in that So had it looks realized.

million And so getting of $X quarter, that. presumably, I XX% but guess that's a you're

the at going looking forward? the contribution P&L? feel we the you're first and upcoming how how revenue on that's quarter Is So for the recognizing then that

Toni Rinow

These no. fully are No, consolidated.

acquired within a position controlling So Sprout. Neptune

owners in OCI into income equity consolidating And line we financial the full way Sprout sheet. belongs at the the on other comprehensive statement. and of revenue the to can ownership both Neptune other be the are the of that portion So Sprout P&L in balance seen

Operator

participating We you this concludes Ladies for gentlemen, and for call today. your please disconnect thank your conference that you and ask lines.

Neptune Wellness Solutions (NEPTF) 15 Jul 212021 Q4 Earnings call transcript