Neptune Reports 4rth Quarter and Fiscal 2020 Results.

LAVAL, QC: Neptune Wellness Solutions Inc. ("Neptune" or the "Company") (NASDAQ: NEPT) (TSX: NEPT), a diversified and fully integrated health and wellness company, today announced its financial and operating results for the three-month period and year ended March 31, 2020. All amounts are in thousands of Canadian dollars except if specified otherwise.

Fourth Quarter 2020 Financial Highlights:

Total revenues for the three-month period ended March 31, 2020 amounted to $9,530, representing a sequential increase of $355, or 4%, over the third quarter ended December 31, 2019 and an increase of $3,866, or 68%, compared to $5,664 for the three-month period ended March 31, 2019.

Revenues from the Cannabis segment reached $4,006, an increase of $1,195, or 43%, sequentially from the three-month period ended December 31, 2019 and an increase of $3,994 from the three-month period ended March 31, 2019.

Revenues from the Nutraceutical segment for the three-month period ended March 31, 2020 amounted to $5,500, a decrease of $836, or 13%, sequentially from the third quarter ended December 31, 2019 and a slight decrease of $152, or 3%, compared to $5,652 for the three-month period ended March 31, 2019.

Net loss for the three-month period ended March 31, 2020 amounted to $39,239 compared to a net loss of $12,384 for the three-month period ended March 31, 2019. The net loss includes an impairment of goodwill of $41,451, which was partially offset by a gain of $36,782 related to a reduction in the fair value of the contingent consideration in connection to the acquisition of SugarLeaf Labs. In addition, Neptune incurred an increase in non-cash expenses related to stock-based compensation expense, non-cash marketing and co-development expenses and depreciation and amortization combined with a lower Adjusted EBITDA1.

Adjusted EBITDA1 decreased by $22,647 for the three-month period ended March 31, 2020 to a loss of $25,354 compared to the three-month period ended March 31, 2019. The decrease in Adjusted EBITDA1 is mainly attributable to investments made in the cannabis segment to grow the workforce in anticipation of increased sales volumes, start-up costs associated with expanded capacity and increased SG&A investments to support the commercialization of new brands and products, as well as an increase in salaries and benefits at the corporate level.

Neptune reiterates its first quarter fiscal 2021 revenue guidance where it anticipates achieving consolidated revenue of between $18,000 and $22,000, representing approximately 300% to 400% growth over the prior year period.

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1 See "Caution Regarding Non-IFRS Financial Measures" and "Reconciliation of Segment income (loss) before corporate expenses to Adjusted Segment EBITDA and net loss to Adjusted EBITDA" which follow.

Recent Corporate Highlights:

On February 5, 2020, Neptune announced the expansion of its strategic partnership with American Media LLC ("AMI") to help support the U.S. launch and growth of Neptune's Ocean Remedies brand and product line. The expansion follows a previous partnership with AMI to support the growth of Neptune's Forest Remedies brand.

On February 13, 2020...