LAVAL, QC, Oct. 30, 2006 (Canada NewsWire via COMTEX News Network) -- Neptune Technologies & Bioressources Inc. (TSX-V: NTB), (Neptune) is pleased to announce its results for the first quarter ended August 31st, 2006.
Neptune improved its bottom line by 27%, reporting a loss of $286,000 or $0.008 per share compared to a loss of $390,000 or $0.015 per share in Q1 2005. Neptune improved its loss on sales ratio from 25% to 18% for, respectively Q1 2005 and 2006. The loss reduction is attributed to the decrease of financial and depreciation expenses, and is slightly offset by an increase in research expenses.
During Q1 2006 Neptune finalised a major planned reorganisation of its Sales department following the Board of Director's recommended commercialisation strategy, which focuses on building strategic alliances as opposed to standard distribution agreements. As part of the reorganization, the company hired Donald Allard as Vice-President Sales and Marketing and replaced its existing sales staff with Key Account Managers experienced in negotiation and working with strategic partners. This reorganization affected prospecting and sales in the first quarter; however, growth is now returning to the historical rate. For Q1 2006 Neptune sales reached expected forecast at $1,552,000 representing a decrease from Q1 2005 sales level at $1,683,000. Nevertheless, Neptune maintained its EBITDA margin at approximately 20%, similar to Q1 2005.
André Godin, C.A., Vice President, Administration and Finance at Neptune Technologies & Bioressources Inc. stated, "We are pleased to have realized our sales forecast for Q1 2006 despite the sales reorganization. The reorganization may have impacted our Q1 growth but was an effective strategic move, which will have a positive impact on sales immediately."
About Neptune Technologies & Bioressources Inc.
Neptune Technologies & Bioressources Inc. develops high value added nutritional products from underexploited marine biomasses, such as krill, with its patented extraction process (Neptune OceanExtract(TM)). Using an exclusive process, Neptune Technologies & Bioressources Inc. is well positioned in the $182 billion global nutrition market (Nutrition Business Journal, Oct/Nov 2004) of health and wellness concepts. Natural biomass extraction is now playing an important role in developing nutrigenomics, the next wave in nutritional research. Through strategic alliances and partnerships, as well as through clinical studies, the Company continues to demonstrate the immense beneficial effects of these products. The Company develops and markets new formulas and new products for specific applications in high growth markets such the nutraceutical, cosmeceutical, biopharmaceutical, and nutrigenomics markets.
Except for statements of historical fact, all statements in this news release - including, without limitation, statements regarding forecasts, plans and objectives of Neptune Technologies & Bioressources Inc. - are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from those anticipated in such statements.
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