Neptune Wellness Posts Upbeat Q1 Revenues
Penny hemp stocks across the board continue to experience substantial volatility in 2020 and Neptune Wellness Solutions has been no exception. Neptune Wellness Solutions (NASDAQ: NEPT) just posted first-quarter fiscal 2021 results – and while revenues have surged, the results were mixed. The CBD extractor and producer posted an upbeat, 390% YoY revenue surge. This hemp stock has surged over 50% since April – but will the momentum continue through 2020?
The company has attributed the surge in revenue to the new Health and Wellness Innovations consumer products as well as the expansion in the cannabis segment.
Notably, the hemp stock’s gross margin improved to 15.2% as compared to the negative gross margin in the first fiscal quarter of 2019. Neptune Wellness cites volume growth in cannabis as the reason for the improvement in its gross profits.
Increased focus on new product lines amid COVID-19
The hemp company believes in continuous investment by developing new product lines for driving top-line growth. Neptune’s CEO, Michael Cammarata, said, “Our pace of new product and category development has accelerated, and we are fully leveraging our assets to drive profit accretive growth with limited incremental capital investment.” He added, “Each of our new product launches are designed to drive higher margins and higher returns on investment to maximize returns and support incremental growth opportunities.”
During the quarter, the cannabis company launched Neptune Halo, an electronic pulse oximeter device, to assist in the detection of COVID-19. This product is a part of Neptune’s Health and Wellness portfolio.
Furthermore, the company launched its new range of herbal sanitizers which is also intended for the expansion of its Health and Wellness segment. It is evident that Neptune wants to channelize its resources to tweak its business according to the current environment.
Will the momentum continue through 2020?
Recently, Neptune Wellness announced another product for the cannabis market and will introduce its proprietary ‘Mood Ring’ brand for the Canadian cannabis market this fall. The Mood Ring brand will be Neptune’s answer to the booming demand for high-quality yet affordable environment-safe cannabis products.
Encouraged by the splendid performance in the first quarter, Cammarata anticipates robust growth to continue in the second quarter as well. For Q2 fiscal 2021, the hemp stock’s revenue is likely to be in the range of CA$28,000 and CA$32,000. This means that Neptune is expecting to beat Q1 revenue growth. For the second quarter, the YoY growth is likely to be between 330% and 391%.
The hemp stock has surged over 50% since April and we believe that the momentum will continue as Neptune positions its products in tune with changing market conditions.
Neptune Wellness Posts Upbeat Q1 Revenues
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