Biotechnology company Neptune Technologies & Bioressources reports that it has increased nutraceutical revenues by 50% to $20,598,000 for the nine-month period ended November 30, with adjusted EBITDA decreasing by 11% to $2,225,000. The net loss from its nutraceutical business reached $13,632,000 for the nine-month period ended November 30, 2012, compared to a net profit of $1,004,000 for the corresponding period ended November 30, 2011.
Neptune said that the nutraceutical loss is mainly attributable to the write-offs required by accounting principles under the International Financial Reporting Standards (“IFRS”) and is composed of estimated impairment losses and costs related to the explosion that destroyed the Corporation’s production plant on November 8, 2012, for an amount $8,465,000, and the derecognising of the deferred tax asset in the amount of $1,000,000 and of the long-term investment tax credit recoverable in the amount of $1,200,000 at November 30, 2012.
According to the same IFRS accounting principles, the realisation of these assets will depend on the successful implementation of the company’s action plan to resume operations and the ability of the company to generate future taxable income in this segment.
“Due to the circumstances, those write-offs were imperative and negatively affected our bottom lin, said Andre Godin, CFO. “From now on, amounts received from the insurance will offset the impairment losses.”
For the three months to November 30, 2012, Neptune’s nutraceutical revenues increased by 29% to $6,603,000. Adjusted EBITDA decreased to $432,000, down from $1,081,000. Net loss reached $10,883,0002, compared to a net income of $869,000 for the corresponding period in the previous year.
