OTCPK:NEPTF - Post by User
Comment by
goldstoryon Dec 01, 2020 1:57pm
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Post# 32010736
RE:Neptune pivot continues
RE:Neptune pivot continuesIt depends how fast and how widely they can sell its cannabis-based products, but this is MC's way of saying, "Our Q3, Q4 result will be sucks again.".
"...Neptune is paid on sales for its cannabis-based products, but expects to only recognize the full extent of revenue upon sales to the end customer during the first year of a product SKU due to IFRS accounting rules. Accordingly, in the short term, both revenues and gross margins will be affected.. "
This statement also concerns me a lot. It looks like that Neptune is making an excuse in ahead.
If the oversea supplier/manufacturer is Chinese, I have a grave concern. I had very bad experiences with Chinese companies in keeping business agreement and quality of products.
"With regards to other facets of Neptune's diversified business, including its international trade business, Neptune is delaying fulfillment into the Q4 of Fiscal 2021 (or later) of certain products manufactured overseas due to rising air freight costs and the challenges in international supply chains resulting from macroeconomic conditions facing the world due to the COVID-19 pandemic. There were significant restructuring and other one-time charges included in the second quarter of Fiscal 2021, as was discussed in Neptune's November 16 earnings announcement. Certain aspects of the Company's business experienced tremendous growth but at the same time came under immense margin pressures and expedited delivery of products which did not permit the Company to realize acceptable gross margins which is part of our core financial strategy."