BioHarvest Sciences Inc. (CSE:BHSC, OTC:CNVCF) has said it is estimating 2023 revenue to be between $17 million and $20 million, representing growth of at least three times over 2022.
The Vancouver-based company said revenue for 2022 is now estimated to be $5.5 million to $5.7 million, meeting the guidance range it provided in the first quarter of the year. Additionally, it expects to achieve cash flow break-even in the fourth quarter of 2023 as it continues investing in research and development and the building of manufacturing capacity for its nutraceuticals and cannabis verticals both in Israel and abroad.
"Our Biotech scalable innovation is a key differentiator in the markets we serve, and it is paying off," CEO Ilan Sobel said in a statement. "In 2022 we achieved 2.5 times revenue growth over 2021 and we are now looking at exceeding three times growth in 2023. This phenomenal growth can be attributed to the science-based products developed by our experienced scientists and to the commercial platform built by our talented marketing and sales organization."
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BioHarvest noted that its flagship VINIA red grape supplement is enjoying overwhelming consumer demand and will represent a significant portion of 2023 revenue.
Among its outstanding sales metrics is a 4.8/5 rating from more than 1,350 verified reviews, demonstrating the strength of loyalty and long-term relationships that the brand is building with its customer base.
In addition, as VINIA's brand strength grows, the company said the level of business-to-business (B2B) interest from major US companies who are learning about its unique benefits has also increased.
The company said it enters 2023 with a pending Batory Foods purchase order of $600,000 that was only partially filled in 2022 due to the surge in demand for VINIA direct-to-consumer sales and looks forward to continued momentum in this channel.
Strong foundational asset
BioHarvest noted that the past quarter's performance contributes to its confidence in generating healthy sales growth of its science-based products. In addition, its e-commerce platform, built over the past 18 months, is proving to be a strong foundational asset for turning synergies into sales and improving marketing efficiencies.
The company said it will leverage its proprietary Bio-plant CELLicitation technology platform to introduce new products and debut their sales in 2023.
On the cannabis front, there will be products with THC below 0.3%, which will be launched nationally in the US to leverage the power of the company's e-commerce platform.
Additional products with higher THC levels will be introduced to US cannabis research license holders, with Drug Enforcement Administration (DEA) approval via the company's recently announced agreement with Royal Emerald Pharmaceuticals and through other partnerships at a US state level, the company added.
"I look forward to an outstanding year with significant revenue growth and continued major technological breakthroughs,” Sobel concluded. “I will be sharing more details about our outstanding prospects in 2023 and beyond at the shareholders' conference planned for January 19th, 2023. I hope the projected growth we are announcing today is accepted by shareholders as my gift for the holidays. Happy holidays to all."
Vancouver-based BioHarvest Sciences is the developer and exclusive owner of the proprietary and patent-protected BioFarming technology: the first and only industrial-scale plant cell technology capable of producing active plant ingredients without the necessity to grow the plant itself.
Contact the author at stephen.gunnion@proactiveinvestors.com