Good afternoon, ladies and gentlemen, welcome to the Neptune Wellness Solutions Inc. Q2 2023 earnings call. At this time, all lines are in a listen only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Friday, December 16th, 2022. I would now like to turn the conference over to Valter Pinto, Managing Director, KCSA. Please go ahead. Thank you operator. Hello everyone. Thank you for joining us today for the Neptune Wellness Solutions fiscal Q2 2023 earnings conference call. With me today are Michael Cammarata, President and Chief Executive Officer, and Raymond Silcock, Chief Financial Officer. All amounts discussed today are in U.S. dollars, and our remarks may contain forward-looking information representing our expectations as of today and may be subject to change. Today's conference call contains non-GAAP measures, specifically adjusted EBITDA, to provide investors with supplemental measure of our ongoing performance and thus highlight trends in our core business that may not otherwise be apparent when relying solely on GAAP financial measures. Management also uses adjusted EBITDA in order to facilitate operating performance comparisons from period to period, prepare annual operating budgets, and assess our ability to meet our capital expenditure and working capital requirements. Adjusted EBITDA is not a recognized, defined, or standardized measure under GAAP. Our definition of adjusted EBITDA will likely differ from that used by other companies, including our peers, and therefore comparably may be limited. Non-GAAP measures should not be considered a substitute or in isolation from measures prepared in accordance with GAAP. Investors are encouraged to review our financial statements and disclosures in their entirety and are cautioned not to put undue reliance on non-GAAP measures and view them in conjunction with the most comparable GAAP financial measures. We do not undertake any obligation to update any forward-looking statement, except as may be required by Canadian and U.S. securities laws. Assumptions were made in preparing these forward-looking statements, which are subject to risks as laid out in our public filings found on SEDAR and EDGAR. I'd now like to turn the call over to Michael. Thank you, Valter, and hello everyone. Today we reported our fiscal Q2 2023 results for the period ended September 30th, 2022. During our fiscal Q2 of 2023, we experienced continued growth, mainly driven by our organic baby and toddler food brand, Sprout. These results demonstrate that our strategy to focus on consumer packaged goods is yielding financial benefit, and we are confident that this trend will continue. Because of our hard work over the last few years, we are now a leading consumer packaged goods company with a portfolio of good for you and good for the planet consumer branded products. Sprout Organics is a top five organic baby food brand that is currently outperforming the category in sales growth. We have recently made a successful expansion out of the baby aisle into a new product category, toddler meals. Biodroga is also performing well with new product offerings and new client relationships. I will go into both of these as well as operational highlights right now. Let's start with our organic children's food and snack brand, Sprout. According to Nielsen data, Sprout is the fastest growing brand out of the top five brands in the organic shelf stable baby food category, growing 26% in the last year, outpacing Gerber Organics and Happy Baby Organics. Nielsen data last 52 weeks, week ending October eighth, 2022. Specifically, within the latest quarter, updated Nielsen data shows that Sprout sales grew 18.6% versus 10.7% for the overall category. Nielsen data last 13 weeks, week ending October 8th, 2022. Our CoComelon partnership has proven highly incremental to the category. CoComelon snacks are turning 79% above the category average in the last 13 weeks. Pouches are selling 40% above the category average of all pouches. Nielsen data last 13 weeks, week ending October 8th, 2022. Sprout has the 3 fastest growing organic meal items nationally and the highest velocity in the segment. Nielsen data last 13 weeks, week ending October 8th, 2022. We experienced quarter-over-quarter sales growth, our everyday fill rate fell to 57% in Q2 due to supply chain challenges. Our biggest supply challenges were our stage 3 pouches and toddler meals and our waffle supplier, which experienced a fire at the facility and unexpectedly caused out of stocks. With ingredients already back in stock, we are catching up on this, as is evident in our October fill rate, which is back up to 81%. Sprout continued to roll out new SKUs during the Q2, further increasing our opportunity for revenue growth. Last quarter, we announced the addition of a new display featuring the CoComelon co-branded product at 2,500 Walmart doors in August and September, which was a major contributor to an approximate 31% increase in net sales for the first half of this year versus the same time period during the prior year. We are gearing up for distribution expansion in Q4 as we are doubling our SKU count and more than doubling our door count from 900 to 2,300 doors with a major retailer. Sprout's distribution growth in terms of store count has reached nearly 28,000 doors. We are now available in 90% of the market partnering with leading retailers, Target, Walmart, major supermarket chains, and both of the largest national pharmacy chains in the United States. We are also shipping direct to consumers through the Sprout website. Sprout is now available in all 50 states and continues to expand in Canada. In Q2, Sprout expanded beyond the baby food aisle and continues to show upward trends, strengthening our potential to disrupt growing addressable markets. For the first time since Sprout's inception, it will now be able to extend its customer lifetime value, providing healthy, organic, and convenient options as children grow. The launch of our new Big Kid Mealz, a line of organic heat and serve bowls for children four and older, is a key milestone toward the company's plan of extended market penetration beyond the baby aisle. The launch includes four flavors, each with a full serving of veggies, and represents our potential to disrupt a retail category more than double the size of the baby food category. Big Kid Mealz have already begun shipping to retailers. We expect to report revenue growth in upcoming fiscal quarterly reports. The second fiscal quarter of 2023 saw a continuation of Sprout's growth path with several exciting milestones and sales levels achieved. The Sprout brand recorded $8.4 million in revenue in Q2 of fiscal 2023, outperforming Q2 in fiscal 2022 by 19%. We saw improvements while pulling back on promotions. The first half year-over-year trade rate was reduced by 10 points. We made significant improvements in gross margin this quarter and expect fluctuation in future quarters as we progress towards our plan of 22% in 2024, largely driven by the following four key drivers. One, improvement of the distribution and warehousing costs as a result of the move to a full turnkey model, as well as improved logistics cost management. Two, continued price increases effective November 1st, 2022. Three, an improved product mix. Four, the realization of certain volume discounts with the level of sales increasing. We are gearing up for distribution expansion in Q4 as we are doubling our SKU count and more than doubling our door count from 900 to 2,300 doors with a major retailer. A key element of Sprout's strategy focuses on accessing the growing organic food and beverage market, with NielsenIQ estimating market size of $124 billion and $21 billion for beverages and cereal, respectively. We continue to seek relevant opportunities to launch new products into categories where we see the most potential. Our expertise and partnerships with retail leaders gives us the foundational position toward becoming a leader in the organic food sector and beyond. We are focused on scaling the Sprout business in a cost-efficient way while also growing and innovating within the organic food market. I am very proud of the momentum the Sprout team has continued over the Q2, we look forward to continuing this through fiscal 2023. Turning now to personal care and beauty and Biodroga. Steps we have taken over the past year to increase product lines and grow sales leads have continued to translate to positive sales in the Q2 that we expect to continue through fiscal 2023. This was achieved by amplifying Biodroga's brand presence through trade show attendance, implementing effective marketing strategies, and our launching of a successful new website in prior quarters. We have continued to innovate and grow Biodroga's product lines for both existing and new customers, which will further drive revenue going forward. Our MaxSimil Omega-3 products have also maintained significant popularity and customer demand, with a new customer secured in the Q2 for a whole new portfolio of products to be launched shortly. Biodroga also continues to undertake clinical studies to further build the credentials of our MaxSimil technology, which we believe is an incredibly strong asset for the company. MaxSimil is a game-changing piece of biotechnology that will help grow Biodroga and increase its market presence long term. MaxSimil's technology has been successful in making fish oil 3.5x more absorbable than standard fish oil. We hope that with our ongoing studies, we will be able to expand MaxSimil into more nutraceutical products. We're tremendously excited for what's ahead for Biodroga and look forward to seeing continued growth from them. Our consumer personal care brand, Forest Remedies, also continued its path of growth during the Q2. Product launches of Forest Remedies into large retail chains nationwide have translated to positive sales growth, which we expect to continue through fiscal 2023. In particular, launches into Sprouts Farmers Markets, Fresh Thyme, and a large pharmacy chain in prior quarters have translated to week-over-week growth and strong customer demand. In addition, Neptune is working on the development of innovative new SKUs in the product pipeline for Forest Remedies. For example, we are planning to launch Forest Remedies Multi Omega Kid Gummies early next year, the formulation for which has already been developed. While we continue to experience sector-wide supply chain issues over Biodroga and Forest Remedies, we have been aggressive in implementing, streamlining, and efficiencies to mitigate these challenges and ensure cost saving. Biodroga continues to expand its manufacturing network by developing strong partnerships across North America, and during Q2, Biodroga launched its first product from a new soft gel manufacturer in the U.S. Product quality remains a key pillar for Biodroga, so the selections of new co-manufacturers are carefully managed by our quality team. To conclude, Neptune made significant progress over the second fiscal quarter to execute on its consumer packaged goods growth strategy and improve our path to profitability. Our progress has been demonstrated by sales growth across both our organic foods and beverages and personal care and beauty. We are well-placed for growth and believe these decisions are in the best interest of Neptune and its stakeholders. Thank you to all our teams at Neptune, as well as our stakeholders. Finally, there's a light at the end of the tunnel. By exiting cost-intensive businesses that were championed by our prior boards and leadership, we are now finally able to say that we believe we will be on the path to profitability quicker. Slimming down, starting to simplify the organization, and focusing on consumer packaged goods is the company's future. I will now pass the call over to our Chief Financial Officer, Raymond Silcock, to discuss our financial results in more detail. Ray has had a successful career improving sales and profit performance for leading public and private equity-owned companies, including Campbell Soup and Diamond Foods. We are pleased to have him join us. Ray? Thank you, Michael. Good afternoon, everyone. I am pleased today to present Neptune's financial results for our fiscal Q2 of 2023, the three-month period ended September 30th, 2022. All amounts are in U.S. dollars. First of all, I'd like to sincerely apologize to all our shareholders and to our other stakeholders for the delay in reporting earnings this quarter. The delays were largely as a result of complications from our transition last year and from Canadian to U.S. dollar reporting, as well as from our onboarding a new finance and accounting team this quarter, including myself. Turning now to the results for Q2, revenue for our Q2 totaled $12 million, a decrease of 4% from the same quarter last year, despite the adverse impact on net sales of our exiting the cannabis business. The cannabis divestiture resulted in a reduction of net sales of $600,000 in Q2, as compared to the same quarter last year. This decrease was more than offset by increased net sales from the key growth segment of our business, organic foods and beverages, growth we expect to see for the rest of fiscal year 2023. Consolidated gross margins in Q2 improved by 18.6 basis points to 9.2% of net sales for the Q2, as compared to a -9.4% of net sales during the same quarter prior year. This improvement reflects that Q2 last year included the impact of a $3 million impairment to cannabis inventory, as well as the effects of steps that were taken over the past year toward becoming a pure-play CPG company, which have translated into margin growth in organic foods and beverages, where our principal brand is Sprout. On Sprout, we expect to see a continued favorable impact on both revenue and margin as we scale our co-manufacturing and retail partnerships there. Sprout, an organic children's food brand, accounted for $8.4 million or 70% of the total $12 million of Neptune revenue in Q2. The principal driver of Sprout's growth in Q2 was in Walmart displays, which we secured in 2,500 Walmart locations this past quarter. Moving now to Biodroga. Biodroga's Q2 net sales were down $900,000 from the same quarter last year, adversely impacted by shipping delays. Gross margins of 29% compared to 30% for Q2 last year. Finally, cannabis. The sale of the cannabis assets for $3.8 million was completed on November the 9th, 2022. Q2 cannabis revenue was $55,000, a decline of $1.1 million as compared to the same period last year, while gross margin improved $420,000 to a loss of $780,000 versus a loss of $1.2 million in the same period last year. Exiting the cannabis business was a significant milestone for Neptune, as divesting the cannabis assets has freed us to pursue relationships with investors, corporations, and banks who have restrictions against working with companies that own and/or operate cannabis businesses. Even more importantly, it maintains our focus on our growth business, Sprout, as well as on our Canadian business, Biodroga. The sale of cannabis assets has helped us realize significant cost savings and will enable us to streamline our business model and enable simplification of our corporate structure. f-to-date fiscal year 2023, Neptune net sales are $28.3 million, up $5.7 million versus the same period last year, an increase of 25%. Gross margin year-to-date amounted to a loss of $1.8 million compared to a loss of $3.5 million for the same period last year. Excluding this year's first quarter cannabis inventory impairment charge of $3.1 million. Gross margin for fiscal year 2023 year to date would have been a $1.3 million profit. This compares excluding last year's $3 million inventory impairment charge on cannabis to a loss of $500,000 excluding the impairment in fiscal year 2022. Moving on to Sprout. Net sales for the first half of FY 2023 increased by $3.9 million compared to the same period in the prior year, an increase of 30.5%. This was largely driven by our diversifying into new product categories, in particular to what we call up-age meals for older kids by expanding our distribution footprint with Walmart and also from increased prices. These factors all contributed towards market share growth, higher sales revenue, and margin improvement as compared to the same period last year. Gross margins have already improved sequentially quarter-over-quarter in fiscal year 2023, driven by higher sales volume and increased selling prices, and we expect further gross margin improvement for Sprout in 2023 from the four key drivers that Michael enumerated in his remarks. We anticipate that these drivers will lead to a Sprout gross margin of 22% by the end of fiscal 2024. Biodroga net sales year-to-date totaled $8.2 million, an increase of 13.7% compared to the same period last year, while gross margin of $2 million in Q2 was up from $1.9 million last year. The percentage margin for Biodroga expanded from 31.6% year-to-date fiscal year 2023 to... Sorry, expanded to 31.6% fiscal year 2023 from 26.2% last year. In the Q2, SG&A expenses were $15.9 million compared to $15.4 million for the same period last year. This is primarily as a result of severance payments, mainly in the cannabis business and other costs related to our restructuring implemented over the past year. Net loss of $37.3 million in the Q2 was primarily due to an impairment charge in Q2 of $24.7 million. $10.2 million of this was in Sprout trade names and goodwill, and $14.5 million was related to the cannabis assets we sold. In addition, we had a change in the fair value of derivatives, which cost $7.3 million, offset by a gain of $3.1 million in foreign currency adjustments. This compares to a net loss of $12.1 million for the same quarter last year. We have also continued to take action to manage operating expenses. Cost cuts across the businesses and at corporate have reduced the company's headcount from 170 to 56, a payroll reduction of $7.6 million, or 49%. In fact, since completing our strategic review last year, we have reduced our total admin headcount spend by an approximately $18 million on an annualized basis. We continue to evaluate additional steps to manage all our expenses appropriately, and we expect Sprout to have positive EBITDA by the end of fiscal 2025. Turning now to our balance sheet. Neptune ended the quarter with $1.4 million in cash on hand. Today, our cash on hand amounts to $3.5 million. In July, Neptune entered into an amendment and an expansion of Sprout secured promissory notes led by a $3 million investment from Morgan Stanley. This amendment expanded the notes by $15 million from $22.5 million to a possible maximum of $37.5 million and signifies confidence in Neptune's strategic shift towards becoming a pure-play CPG company as well as Sprout's growth trajectory. The funds from the expanded facility are intended to be used for general Sprout working capital and the repayment of certain outstanding obligations. Sprout issued promissory notes amounting to $775,000 to other investors since July 2022. In October of this year, Neptune raised $6 million in gross proceeds in a successful public offering of the company's equity. To sum up, we are pleased with the year-to-date progress on our core brands, Sprout and Biodroga. Increased revenue, better gross margins and lower costs, a pattern we expect to continue through the rest of this year. We are now directing all our focus and resources to becoming a CPG company and look forward to seeing this improvement as we advance into the next fiscal year, fiscal 2024. With that operator, I'd like to open the call for questions, please. Thank you, sir. Ladies and gentlemen, we will now begin the question and answer session. If you would like to ask a question, please press star followed by the number one on your telephone keypad. If your question has been answered and you would like to withdraw from the queue, please press star followed by the number two. One moment please for your first question. Your first question will come from Aaron Grey of A.G.P. Please go ahead. Good evening, thank you for the questions. First one from me. I believe you guys said in the prepared remarks, there was some impact just in terms of supply with, I think you said some waffles and a toddler on the Sprout side. You know, can you talk about maybe how much of an impact it might have had in the sales during the quarter, and then just maybe just give us more detail on the impact and confirm that that's now been resolved? Thank you. Hey, Aaron, it's Michael Cammarata. The impact, we had a fill rate of 57% for the quarter, so of the potential orders. Obviously there was... If you minus out the $1.2, $1.3 of Walmart, you can see the core impact it had on the core sales. We're since back up to over, at 81% fill rate and with a goal of getting up to over 90. Okay. Thanks for that. That's helpful. It sounds like you guys got some extra distribution coming online in Q4, with retail going from 900 to, I think you said, 2,000 or more. Can we confirm that Sprout Organics distribution now being at 90%, that takes into account that incremental they have coming on? I'm sorry, in calendar Q4, not your fiscal Q. Can you confirm that that includes that within the 9%? As we then move forward into the incremental quarters, you know, now that you have the broader distribution of the 90%, is it then more about getting more SKUs within the existing doors? Or how do we then think about those incremental growth opportunities for Sprout? Yeah. With that, retailer particularly, the resets are in March, so we would ship out in February, and that would be the uptick, which is in our Q4. Okay. In your Q4. How do we think? That gets you to 90%, right? Thereafter, how do we think about the more longer-term growth opportunities for Sprout? The growth opportunities, obviously we're heavily focused on increasing our velocities and our SKU expansion. With our up-age meals, those are starting to roll out to our core distribution. That's something that, you know, beyond our core SKUs, the up-age meals we expect to roll into the existing distribution. It's already started shipping, and we'll start ramping up early next year. On top of that, beyond the up-age meals, we have additional distribution that's coming online for additional retailers. Obviously, our white space that we have is in Albertsons and Whole Foods. Okay, great. Thanks for that, Michael. Any update in terms of the partnership with CoComelon, maybe how some of the CoComelon co-branded products might be outperforming, maybe some co-marketing you might... I I know there's some potential for that. Any update in terms of that CoComelon partnership? Yeah. CoComelon, we haven't even deployed yet, marketing into their YouTube channel yet, which has over 115 million subscribers. We are expanding our relationship with them, and addition, with the addition of additional products, including the snacks that we announced, going into our distribution. The partnership, we're seeing that there's an uplift of over 70% on the SKUs when adding the CoComelon. We're seeing that we're performing very well against our peers who have different licenses. CoComelon has proven in retail to increase distribution and have an uplift as is greater than 70%. We are expanding the relationship and the product offerings with them. We do plan to expand the relationship and how we market with them, as well as, starting to eventually work with them on their YouTube channel and integrating additional content as the SKUs roll out to our distribution. Okay, great. Thank you for that. Last one for me, and then I'll go ahead and jump back into the queue. Just talking about the target, this might be more for Raymond here. The target of the profitability by end of fiscal year 2025 on EBITDA. First of all, could you just confirm the EBITDA, you know, for the quarter that you guys had roughly here? I didn't see that in the PR. As we look to that end of fiscal year 2025, can you talk about maybe some underlying, you know, sales or gross margin assumptions that might be needed in order to reach that profitability target? Thank you. Yeah. This is Ray. I, you know, we'll be releasing our Q with EBITDA detail in it on Monday. I, you know, I'm not ready to answer the EBITDA question right now, just because we didn't include that in our press release. With respect to the question about profitability in 2025, yeah, we have expectations. Right now we're guiding solely to our expectation of profitability in 2025. At some future date, we might be willing to, you know, give more detail. Right now we're just sticking with the fact that we expect to be profitable, and not the full details of sales and earnings and so forth. Okay. All right. Well, thank you very much for the color and answering the questions. I'll jump back into the queue. Ladies and gentlemen, once again, if you would like to ask a question, please press star one at this time. As there are no further questions, this will conclude the conference call for this afternoon. Neptune would like to thank everybody for participating, and we ask you to kindly disconnect your lines. Thanks, everyone.