NEPT - Earnings call transcript Q4 2022 | Neptune Wellness Solutions Inc.

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Operator

Good morning, ladies and gentlemen and welcome to the Neptune Wellness Solutions Inc. Fourth Quarter and Fiscal 2022 Earnings Conference Call. [Operator Instructions] Also note that the call is being recorded on Monday, July 11, 2022. And I would like to turn the conference over to Morry Brown, Vice President, Investor Relations for Neptune Wellness Solutions. Please go ahead, sir.

Morry Brown

hello and operator you, everyone. Thank joining Thank Wellness for Neptune today fourth you quarter call. for Solutions’ conference and the earnings us fiscal XXXX Officer; are and Chief today Cammarata, Officer. and Executive Financial me Interim Randy With Weaver, Michael Chief President All in amounts are discussed today U.S. contain may to as subject information representing remarks of our our and today and forward-looking dollars maybe change. expectations that performance provide may GAAP our supplemental measure the conference contains measures, non-GAAP with apparent in be call otherwise financial trends specifically our not investors and operating when Today’s core on highlight business adjusted EBITDA to solely thus of relying measures. EBITDA order meet period to budgets adjusted uses also comparisons annual assess performance and facilitate our from capital Management period, operating prepare in requirements. to expenditure ability operating and our to capital working defined or recognized, under a GAAP. measure not standardized is EBITDA Adjusted

are undertake in update forward-looking conjunction not comparable Canadian by entirety statement, from laws. financial most securities a as adjusted with and do them by prepared from or comparability on review maybe measures of cautioned and EBITDA used are encouraged including peers, not to differ our disclosures and should reliance substitute the to put in with in We as measures. maybe required GAAP any non-GAAP measures measures to financial obligation accordance likely their will be and not statements that our undue definition considered for limited. therefore, GAAP. companies, view Investors other isolation Our except in any and Non-GAAP U.S.

over will now out were and I on our the found which subject call public SEDAR Assumptions are to risks these preparing in to as laid made in statements, forward-looking EDGAR. Michael. turn filings

Michael Cammarata

ended reported the hello fourth everyone. fiscal full and XX, Thank you, period XXXX. XXXX quarter our results and morning, the This we for March Morry

to macroeconomic Taking account XXXX providing year moment including and fourth current review environment further all centers recently becoming these to made. a conditions, Neptune company. of management Board we our decisions the I fiscal the the plan, believe shareholders. operational our for company are early its launch into we take June, details would consumer a the in goods of and packaged and the discuss strategic strategic have on the like Before the In quarter, our which financial highlights decisions to best related interest factors, pure-play announced

business focus XX% million. cannabis maximize estimated the efficiencies, an annual accelerate our highest operational and was operation. to One, part cost payroll our we the sale of As and the us ultimately towards of has we action put and provide primary therefore Canada Sherbrooke good In cannabis company to two, you good have at refine to cost winding up value. large divestiture order current are plan categories strategic an of of two in a of is XX% cannabis path that and and shareholder Quebec, the on the cost recently the accelerated in This the plan, intended PanHash focusing reduction significant Mood focus savings savings, along planned appraised and costs, resulting $XX intended workforce the of to culminated planned in the reduce we facility with include where and and in addressable the intended Ring the over business so most our far. markets realignment would savings on enhance growth demand that The seeing our actions consumer-branded profitability and which brands of total resources help planet our $X.X and for products for million. of potential. in operational are portfolio the reduction and The

has external consultants. been also level. reduced includes corporate $X.X corporate level This enacted corporate reductions savings in to a which headcount at initial in of payroll the the costs. XX%, at result million have additional by we and expect We the cuts in cost Headcount

growth. review in final of fall XXXX took simplifies and initial and business goods the review enables to packaged synergies purpose-driven, cannabis the the fall, when we million a builds focused step place the they pure-play, reopened continue to since This savings our the on our We we businesses and of look strategic reductions corporate employees. units. have the involve beginning, payroll will strategic across approximately areas review strategic announced These plan for positioned we and of that corporate cost have get cost the company. hyper of of $X.X believe are the $XX is It the in on our month. are our In for and valued structure best overall profitability This last total, structure announced for our consumer last million. to includes and additional decisions cuts difficult transition us

positioned we decision long-term to achieve ensure its Neptune financially believe value. the shareholder increase goals However, to is this and is to prudent make

move I’d our I Before like and of we few about executive recent invite to a Julie the Chair our Phillips, have to highlights, to words appointments to made team. on say Board operational Board, our

Julie Phillips

and hello everyone. Michael you, Thank

shared, two have the made of we over strategic Michael last several appointments leadership weeks. As the to Neptune

Sanford for positive next of are of Neptune’s financial The knowledge Philip path First, the expertise we next growth as former the well Chairman deep guidance of a stage end, this and of as further the Phil Board as our seeing of post we Philip Organics. commercial navigate addition brands of this bolsters at already the for impact quarter experience Board’s growth Chair. Neptune. and stage we the of board to holds Audit advisory Sprout first-hand as welcomed as

and of the will further of area the pleased XX, CFO the He very particularly Raymond Financial more strategic CPG. positioned recently and leading companies record opportunity the strong to to XX as transitions years warm In Ray like is drive Officer, the a we of both On and offer our to team, to achieve I’d Board say cost further has few public the words. growth. efficiencies well long-term management say were a experience success Ray of the announce help XXXX. for of and appointment Neptune Chief companies, support take him welcome track execution a July shift, on behalf addition, of Neptune’s effect Silcock performance than and strategic across brings in to through private to which of and

Raymond Silcock

with pivotal Julie be history the delighted many Thank at also entire team you and the morning I and in Neptune on once call I on become CFO. that words, the company’s am as look well. you closely moment team expect working forward joining this will board, I kind for those once everyone. again, I speaking to to this of have good to be the

I So to will call Cammarata. Michael? Michael back with that, turn the

Michael Cammarata

team. welcome to and Thank you, Ray the

and our profitability, a on to have Board our which highlights, made our and trajectory Turning a achieving. team CPG progress year-over-year remain significant to operational on growth laser-focused to path company on we management becoming with

business growth, was brand, continued food Sprout care our During our very innovation. continued including: organic our to our on exciting positioning and Organics, primary and margin the QX, beauty food one, we toddler brand; baby make areas Starting with in fourth personal and focus quarter BXB Sprouts beverages, core being brand. for Biodroga, significant our with and growth for strides our two,

their I of time shows the chain. These illustrate challenging X from of in execution full worked weeks to for Importantly, want our Nielsen periods gains the period supply the the and measured each of work who our the the share to hard hard difficult category the with thank Sprouts, data in-stocks during along a Sprouts’ across at XX weeks. for outperforming brand the the value May that member time the team a category, during team last for all proposition have to Sprouts maintain power period. the personally board

We this in Sprouts revenue delivered. be a for Sprouts ever into should to translate expect quarter which has QX, the quarter highest record

market, rate to Nielsen According baby food now represent a expand baby accelerated to whole. the meal baby from retail confidently up-aged range. shows food into XXXX, an category sales billion to on increase size of can expect improve well a the growth double volume two, the more data $X.X the as items: increasing. of four grown gross XX% four, year market. infrastructure and price believe at warehousing gross where as we meals the categories, driven the the certain food meals improved data, management; their we costs with three, for discounts the to improvement result logistic XXXX, movement cost a With mainly by increase; mix; strong margins level turnkey for place full the have than of the the the product one, as in in growth key toddler category realization organic in Sprout We of of this the and margins sales profit full Up-aged organic September XX% a outpacing by model Sprouts distribution of as to

was will Our launch on available into over are Organics rollout Walmart on Walmart to of quarter of in hitting website sector build expansion CoComelon Organics scale In nationwide Sprouts in products Sprouts with food initial co-branded P&L food CoComelon level CoComelon. already with Organics in the Their market. organic pleased first-ever parallel Walmart.com Walmart, Sprouts organic first to Walmart Sprouts this began quarters. a fiscal launch coming allow cash XXX achieved. product XXXX in is with and expansion also stores impact a to children’s available With the into the higher line efforts the in our we this from and of runway. and baby released our and now at to without strategy XX% cost Sprout products on and a the March approximately market products disrupt expect food decreasing to our Amazon. direct-to-consumer the the revenue effective on

launch quarter, of nationwide. toddlers bars select announced Sprouts the we at available CoComelon also Following snack online fourth for and organic the retailers and fiscal co-branded

supply movement. to which industry, to being QX, managed chain fill Despite we caused inflated remain immune growth. rates. with not trends, the experienced this, the were sector to some has delays the across organic released across shipping maintain and performing was with strong promote Metro increases challenges lines we at costs our Sprouts to We and with from kids Consistent rollout Walmart’s expectations. Canada were XXX% In displays some CoComelon into initial Drugstores initial these strong in of our price portfolio. are the offering across increase in progressed Sprouts London reads It offset partially sell-through to showing CoComelon with over with and and educational SKUs in ingredients. allows products and products doors also food revenue to product number real partnership rated to the X,XXX one the September. CoComelon co-branded add is great Sprouts will Their opportunity surpassing sales additional Walmart featuring world for adding projections entertainment and our Sobeys, several educate, positive product by increased stores. and show shipping has also be costs and August The the able international also product further

Moving to care and personal beauty.

BXB quarter, fourth have brand. beauty and at significant Biodroga, the we our personal made During care progress

a simplified Biodroga mitigate Biodroga more control have distribution ownership supply chain some to delays. of remove middle to within the step, take We its and process and allowing

but our some network, in that lost has result measures costs. strategic capacity decreased of out to coming the further of quarters. manufacturing pushed QX QX. is however, revenue, saving more important revenue our in the capabilities of a gel chain to As cost has our that delays compared increasing brought has supply spend also Biodroga will liquid achieved the into Biodroga the and It not result note, reducing review, soft in and prior it

in acceleration our best during We at reported come have revenue X revenue in Biodroga and QX in over quarter already this seen our revenue resulting a QX, versus years. revenue meaningful

our The the In that network brands the new Biodroga for of well growth in of resulting addition, also to are co-manufacturers for its days. that flowed attended seen we the launching QX QX of one prior and expanded Sales portfolio existing so achieved number through still achieved in agile quarters of partners in products to our allows from be by are into grow from to as quarters sales. will translate delivers tradeshows in customers XX to prior within offerings. an few starting customers. increased is customers flexibility continue with as pipeline Biodroga’s as lines leads momentum product

growth to clinical and revenue underlying the focused expect XXXX. MaxSimil We drive has Biodroga industry studies technology. our growing the its been in this to presence fiscal increase the activity credentials fortify undertaking pipeline of on in

its to absorption. segment. current For and XXx Pacific MaxSimil’s KX offering increasing unmatched the of lines further expanding standard also example, fish results MaxSimil our enable providing communicate Xx vitamin and increase showed dedicated on differentiate us products, Biodroga is customer our to study to and These effectiveness positive MaxSimil KX recent into for bioavailability technology compared about its oil. traditional

of launched this including has products overall the Biodroga products kids. strategy, formulated of portfolio supplement Kids recently of for launch part a product As new

launch Forest a The initial Moving oil, the Awards Market for feedback growth positive, oil. in product be Forest the which rollout expect finalist product category. Xx to In Ahiflower nationwide. in recognized the is to fish of than revenue Farmers multi-Omega to March, plant-based and XXXX. to vegan Sprouts for flow has the NutraIngredients-USA through fiscal with The announced we been as the Market more from in Sprouts and Remedies Farmers Ahiflower effective the has is Remedies. year up we a omega-X supplement alternative this to to proven stores oil the flaxseed oil made of

healthy Forest is see growth of Neptune Remedies the how across to XXX to over stores launched and in more recently is Remedies rolling discuss larger to example expect another both regional this I retailers. and In national into With addition, detail. out results the will that, This call Forest smaller, financial turn from now we launch. CBS have Randy

Randy Weaver

Thank Michael, and everyone. you, hello,

in GAAP. GAAP are wanted in our reporting that our retrospectively been and in XX, this has currency and quarter, The We’ve in and GAAP included to dollars amounts effective I all consolidated from notes nowadays. currency in financial so note accompanying Canadian reporting couple changes in the XXXX. March that dollars of instead change Before the a filing the to are dollars, reporting I recap changed U.S. are fourth statements IFRS expressed we the of U.S. applied

respective translation translation consolidated number respective exchange end effect Those and cumulative periods. in historical rate statements the flows average change assets exchange purposes, of in of and a for at translating comparative recast rates. dollars comprehensive used as a by reported of rate financial Expenses as For are adjustment liabilities equity and loss. the the gains accumulated historical at effect under are in converted is included the equity closing cash transactions currency for and at the There the component losses. period, are shareholders’ and are of part other in

orders Turning a the of revenue, virtually supply are had quarter strong. fiscal we translate industry. timing in revenue factors our which XXXX were million, at which Neptune XXXX that timing of of which experiencing fourth revenue issues, every issues, seen million fourth reported capsules, of QX to to industry-wide some results. quarter XXXX, decrease and issues to those $XX.X revenue all from been third quarter. in in impacted Biodroga particularly We’ve particularly quarter with has revenue There slight very now that our chain we chain In $X.X $XX.X shipment impacted million. due cannabis, supplying

XXXX, XX% $XX.X revenues million. our increase XXXX. totaled XX-month $XX.X the the of million For million ended period in XX, or consolidated $XX.X March compared That’s to fiscal revenues an and

transition company. to year Michael our in As over spoken refocused we’ve a significant strides to, past made the has CPG

slightly continuing seen of impacted chain and but from fact to into supply timing margins organic $XX.X refined improve Sprout that year. the that was to fiscal the reported Organics, we’ve brand and baby XXXX challenges, million profitability. shipping we the by strategy higher our expect revenue drive growth, have revenue happen. anticipate first adopted flow delayed our we in for and of growth food quarter, We shipments Revenue

to Sprout $X.X expect the QX We $X.X to million. in post range in of revenues million

in BXB and achieved year. On the the build margins prior Sprout gross margin $XX.X remarks. personal our million continue front, we the revenue Michael to his million to the $XX.X in beauty driven mentioned care brand factors expect compared opening in Biodroga, to by

driven in to of in segment, we we revenue only which been is $X.X be in we’ve prior million highest as year. the from translation million expansion in come We leads of expect the The for will quarter. experiencing quarter $X years to orders The the than in, cannabis less well divesting, It Last million, quarters which the in comparable. revenue the revenue was of Biodroga revenue is not new brand. improvement product recorded the operation by X during are because really range process for $X.X $X.X are a QX in acquired year lines. of as for primarily million QX of

on costs expenses have end We’re we focusing cut actions since Have very of significantly several and reducing the the continually already business. taken XXXX. throughout

divestment profitability measures for of parts in million, and is For cannabis estimated Neptune example, $X.X announced we division in-house intended savings, January, winding significant divestiture we to further. cost The business us reduction spend. up potential and efficiencies. most The over legal in overall cannabis resulting of in operational brought and a simplify reducing believe, services to To achieve Neptune’s our build cost costs workforce overall will upon XX% savings XX% all hold expenses structure our the focus these an corporate on business cannabis initiatives cost savings our payroll expedite the the operations. will enable greatly total June improved in the growth. Subsequently, reduction and its in of annual of cut

reduction to expect professional lower overhead to also business. gain related We from the cost corporate costs cannabis further fees and

reduce These further taken $X.X the cost impact to corporate vendors addition measures cutting corporate well expenses measures back reduction divestiture, million as to headcount the as of are cannabis we’ve savings. including and and to in XX% also financial expected in outside In consultants. achieve of on further a

past quarter, XX%. to decrease XX prior $XX.X expenses months. the streamlining the of million result million measures and a of for a fourth over we’ve year, or This net is subsidies already cost business period compared the same the SG&A savings million For were implemented the $XX.X $X.X of

ago this hand. On with adjusted the mainly actions was improvement of million of million the use lower expansion decisive period. Our to intends March. proceeds profitability. year $XX.X announced working and to from in and to to near-term, $X The EBITDA $X.X an EBITDA is ensure in following an $XX we towards margin our the million to company’s our execute general we divesting growth attributable offering versus million million of capital drive recently and the year-over-year. path continuing the of balance bolstered the in positioned goods $X In on to adjusted purposes. in the direct strategic loss business business, net registered We’ve improvement company. adjusted the we further our are a while also ended quarter other cannabis improve revenue and our registered increased $X.X consumer corporate we offerings these cash EBITDA direct to offering million, on the on for sufficient June, the in and Neptune better our packaged savings expenses capital financing, taken year loss working strategy throughout sheet, invest With accelerating position cost announced have in sheet priorities our balance during focusing

While debt seeing taken and And for the we food in and and options, its continue including funding strong outlook. personal conclusion, requirements our immediate long-term in care of to fiscal to allow beauty. we’re financing our in financial to ensure meet revenue areas thus stability, explore in term, XXXX additional measures far the QX Neptune core growth beverage

into fiscal that expect XXXX. to trend We continue

and business sustainable profitability We’re streamlining growth. expenses laser focused to our achieve and on reducing

to has realign For exit financial sector shareholders. position brands add that for our CPG our we’re the on this opportune best our raise place fiscal improved year, an our and value to cannabis and additional steps confident focus funding,

I’ll you. turn back the to Michael Now now. call over Thank

Michael Cammarata

you, Randy. Thank

reducing progress touch and to strategic continuing profitability, grow. great of costs made our have priorities striving We on

We but difficult be pulled the would it was future years the for order anticipated a towards XXXX, strategy CPG ready prepared very off we it What future same few view consumers last the becoming future, took not. where where we in that challenging that to to Neptune. been should our required. have be with A market for company we for because they to know, with, you could future not we presented the pulled we not whether time put must. we looks than realities heading good of have or continue for mildly. off, a a rather choose the In wait at planet only want change the we’re products, this As are

BXB become Our a that Sustainability also need a with is to in ultimately CPG mind good We not tool. are To company but company a sales necessary. from just extraction mission options modern good the you, a that that what is wake we’re than is even are planet. change consumers for important. doing of That’s for ground goal to a we just in harder products a up. built think but was value, the are why pandemic thought, global with the company from not CPG

we end light Finally, to in a the see of position are tunnel. at the the

and completion prepared cannabis of the announcement can With excited what the $X of our divestiture business, are our for of the million our and do. we raise brands

cannabis are business. to We sad be our exiting

We them. macroeconomic of a ultimately too regulatory, is family. be watching Mood look even Neptune business on put our so in to of But will proven for proud the part PanHash and intensive to time We to other are grow insurance they and no they capital pressures uncertainty. though Ring legal of Neptune be longer ultimately, they central forward have our brands. The disadvantageous

to the for healthy is as actions the for products growth and here company intended world live Neptune’s are it we sustainable support to goods where future profitability path in. that a the All are buy position of prepared and our for packaged consumer we

country’s now products largest Our available retail chains. of the in some are

CPG new We record you, for cannot product we growing relevance done and are with companies of have our without everyone a this right appreciate joining lines have the open with I strategic shareholders our now key you. line have is To offerings and company with our we and thank XX-year our co-branded track you sharing pursuing for the challenges recognize the this crucially, questions. though who that here, us, been also who the in difficulty for strategically and forward to got may our brands, I consumers And CFO Operator, our categories. future maintaining everyone success. customers’ and product by the through, transition. of stuck we teams, positioning partnerships a expanded look us we gone who felt I have know

Operator

[Operator Alliance Please at Instructions] be will question go Global And your Grey from ahead. first Partners. Aaron

Aaron Grey

and the morning you Good Hi. thank questions. for

So, first question for Sprout. on just me,

I trying back there then the how towards. know but of XQ there billion XX-K, kind relative at – how for guide for going in message growth $X.X Sprout to was Thanks. in million, performed to some CAD dollar that at of first. and switched XQ, and it to you be might then in you interest I be the to of that. some you guided might just looking want the color I looks that wanted now U.S. further terms something terms non-controlling sequentially get then the of to you in leave further It billion. so $X.X from $X.X were color I So, of XQ And like speaking just Just XQ I will because off for the what about to get some is? of

Randy Weaver

for question, Aaron. Thanks the

for we QX, in the the expect I about we fingertips where growth we challenges we the going do my but with fingertips see throughout the have We numbers but preliminaries have shipments. to and don’t year. QX to are we to exactly all the of continued at numbers are the my I expecting continue that to XXXX, wind up are always have It’s at growth. supply chain shipments that or seeing strong QX, don’t see subject talked continuing growth that, are

Aaron Grey

Okay.

said but clarify, for you preliminary to correct? [ph], I believe of X.X% Just Sprout, you gave

Randy Weaver

Yes, I believe that’s correct, yes.

Aaron Grey

in I what first. That’s believe said, we the just

don’t to just I that figure a didn’t was number, what I XQ XQ, I Because hard out you So, to have compares trying guess. yes. –

Randy Weaver

Yes.

Let me if up. can look I that see

Aaron Grey

going that am be I to will follow-up later, Yes. fine.

Randy Weaver

Yes.

fingertips would I preferable. the That at don’t moment. have my number But the at QX Okay.

Aaron Grey

Fantastic. Okay.

Sprout, that I for you the and thanks right? XQ. target, think Secondly, profitability, So, said by XX% on for

fourth to the least stood about gross the it the on Sprout Again, more Just looking nine fourth non-controlling, near-term, terms like of does here quarter today improvement the can near-term timing to gradual you when do had that of cost inflation start that there some in third see months for or XX% the XX%, get quarter of in gross seeing you due a a more XQ, And profit? where But at you. where still impact. at worsened USD. look kind being uptick we of to there? the the translation know on big quarter, wanted of loss for something or I from on is doing that profit or increased whether not again, some fourth Thank to to get for whether to – CAD maybe relative a to talk we prior,

Randy Weaver

I to the increases some There through. are see going of automatically. – is changes think be we to gradual part improvement. to you huge are challenges continue through put that And going changes not having, we some price price

those in continuing through the QX, impact see will mentioned continue of during benefit not in – will those his as of remarks. getting full you to XXXX. see even are fully fiscal Michael impact that of And but of yet the the the get We products you new some we

Aaron Grey

for one some into And initiatives maybe a Michael and you partnership with had are a more Thanks. here. Can you the moving and question of meals. and Sprout, great. of talk lot about the the you obviously, toddler for last Okay, top CoComelon now line strategies Sprout

for also how now do we and new then as on are kind high well the think bar. the level, broader seeing kind of just of lines, a months snack adding distribution ago product especially SKUs, on the and few these doing are kind you toddler you key meals for those of about of So, focusing couple

also where do how lines. the liquidity new SKUs you product add in and self-existing kind of to adding you. need during time terms to especially you between also SKUs, then is juxtapose something deepening on So, cost of two on consider the new Thank a

Michael Cammarata

Yes.

are been others. when the think Gerber already So, the we results having market and have like looking great we against meals had toddler at I in and

it XX% because is margins market. if up-age of a babies going which baby profile look them meals, retailers, category like are in organic had to category will offerings entering when our go are meals, that for about you look the offering. even some that up-aged – instance, XX% of you meal, organic the meals, $X.X the to at We the less. is gross higher. When is And food comes expand at baby and there from like to the it’s in much up-aged profit margin like billion of one be some When meals. you It’s actually

to grocery expand. going at for into in that When supply simplified comes up-age we is So, to to we it feel be us our win meals have it huge able a Sprouts. opportunity chain, to

the have won over world some of us North from we ingredients from lot have banking allow So, the of growth house enabled And strategic it stakeholders to with. different will opportunities. being of from has a open attritional chain of exit and support a supply to that of cannabis side American able additional handful partnered to all the with brand, a which vendors to we co-packers all in our that additional up the us Sprouts get and support

time margin rollout and categories up-age out food we that as years. same going of see do the use time our At to of the aisle part So, eventually expand our food over is in baby next to footprint our then profile. the as of couple into That meals other chain. break baby from existing supply to

with strategically we in taking with some organic. give the edge, going in are in us also with to we branding these in are competitive current less some utilizing of CoComelon the competition SKUs, while in So, higher that’s And our core partnership a price categories retailers. categories margins increases

through just also already that the we and uptick as are will the to margin. and is will breaking that. while increases thought get continue into be CoComelon brand its good up-age transition be the have the special distribution, keys the have like then we working And baby And X,XXX something we the aisle have hitting which And toddler the while. alone as we walking meals, of September, helpful. get start promotion. So, to monitor price we we that a also seen stores in in very with are in of we the kind Walmart starting results going like that’s a are in have also expanding to in we to meals, for success, we already a taken, and have certain And we out already been a map on

Aaron Grey

Okay, color now. you. on you just then great. for kind And any once both cannabis of at us question just of the can further last kind Thank wind up me sales, you are right in or doing just give

the of be that you up, you. Thank timing sale do up about and the So, you capital? any in of process potentially able that in terms on bring the inventory the might wind in And to the new timing you color think what potentially legacy on of terms have? the might then some wind provide of

Michael Cammarata

with footing on it process in actively those And possible are quickly all now through brands new and of we stakeholders support as that Yes, the cognizant move going to for acquisitions. as we are to trying new with and people. to continue

Aaron Grey

of considered. something just capital Okay, great. are timing I different as you being in considering, terms of me, previously it’s for that mentioned the financing And last have debt still one know talked about we options you and well. additional

You the to current XX-K operate of for go recently balance terms in forward. the business the disclosed of kind in

just the you for can have whether look of that you to avenues that you. going ensure as capital the to debt And timing might you have business evaluating? the Thank about financing? forward are then So, talk you

Michael Cammarata

Yes.

And Stanley level, already in So, to into the comes and potentials are a Morgan the divestiture profitable. cannabis a on with has lot Biodroga, obviously, Sprouts up of of others. then it it’s we there when project joint opened

to transition of so you needs. corporate cash the cannabis as out start that, the it unit, out taking we reduces support overhead And of the when needed

very So, that. cognizant we definitely are of

We have and for then then when out half partners, of fast to been the a cannabis overall Biodroga, are which corporate efficient to more working is levels our definitely an moving in for a to us area or are with the reduce and our the the us. burn more accommodate profitable which with suitable opportunities allowed open partners definitely that side getting working business on different way which track, into is that us towards and we already has supporting in on definitely we Sprouts, is we growth. But able be

Aaron Grey

will color. jump Alright. I Great. for in a queue. the lot Thanks the

Operator

attending. Thank this disconnect your at you. you the ask concludes conference. for of no lines. this Thank do questions which And rest please time, Enjoy you at further we we And today’s that time, have your day.

Neptune Wellness Solutions (NEPTF) 11 Jul 222022 Q4 Earnings call transcript