Neptune Wellness Solutions Inc (NASDAQ:NEPT) Q3 2020 Earnings Conference Call - Final Transcript
Feb 13, 2020 • 08:30 am ET
Good morning. My name is Joanne, and I will be your conference operator today. At this time, I would like to welcome everyone to the Neptune Wellness Solutions 2020 Third Quarter Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions] Thank you.
Mr. Martin Landry, Chief of Corporate Development Strategy, you may begin your conference.
Thank you, operator. Good morning, everyone, and thank you for joining us. Earlier today we issued a press release announcing our results for the third quarter of fiscal year 2020. We also issued our management's discussion and analysis and consolidated financial statements. These documents have been filed with the Canadian Securities and Regulatory Authorities of the US Securities Commission and are available on the Company's corporate website.
Before we begin, I'd like to remind you that all amounts discussed today are in Canadian dollars, and today's remark contain forward-looking information that represents our expectations as of today, and accordingly are subject to change. We do not undertake any obligation to update any forward-looking statement, except as may be required by Canadian and US Security Laws.
A number of assumptions were made by us in preparing these forward-looking statements, which are subject to risks. Results may differ materially from what is projected and details on these risks and assumptions can be found in our filings on SEDAR and with the Security Exchange Commission.
Joining me on the call today, we have Michael Cammarata, our President and Chief Executive Officer; and Claudie Lauzon, Interim Chief Financial Officer. Michael will start by giving you an operational update followed by a discussion on our B2C initiatives. Afterwards, Claudie will provide a detailed review of our third quarter financial results. Michael?
Thank you, Martin and good morning, everyone. Let me start by saying that our revenue growth of 41% quarter-over-quarter is a solid achievement in the light of the current cannabis and hemp landscape in Canada and the United States. However, our profitability is below our expectations and we have made significant positive changes across the organization to optimize our cost structure and accelerate our revenue growth to turn the corner towards generating positive EBITDA.
When I joined this Company six months ago, I set out a long-term business plan and vision. I reassess every facet of Neptune, especially, its B2B production capabilities and customer relationships. It quickly became apparent that there were several operational challenges that needed to be addressed immediately.
Across the Company, we've taken decisive action in an efficient manner to change and enhance management, our production plans and our customer relationships in order to accelerate Neptune's continued growth.
As a result of our actions, we are on track to achieve our vision to effectively grow and maximize our B2B extraction business, while also fully developing a direct-to-consumer model that I believe is the future of cannabis, nutrition and retail.
We are closer to that vision today with new high-valued