BioHarvest Sciences Inc. (CSE:BHSC, OTC:CNVCF) told investors that sales orders for 2022 came in at US$6.1 million, a 160% increase over 2021, following a strong fourth quarter for its flagship VINIA red grape supplement in the US and Israel.
The company noted that fourth quarter sales orders of US$2.7 million more than trebled the same quarter in 2021.
In the US, sales orders in 2022 reached US$3.8 million, representing over sixfold those of 2021. Fourth quarter sales orders in the US were slightly over US$2 million, representing a staggering 560% growth over 4Q 2021, it added.
"It has been a year of capability building and focused delivery of results," BioHarvest’s VP of e-commerce and global commercial operations Jared Turner said in a statement.
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The company projects sales orders for 2023 to be three times higher than in 2022, reaching between US$17.3 million and US$20.3 million. It said it also expects to reach cash flow break-even in 4Q 2023.
BioHarvest noted that sales and marketing metrics in the US point clearly to robust demand, forming the basis for the sales projections.
Approximately 90% of 4Q 2022 sales at www.vinia.com were derived from subscription packages with more than 90% of subscriptions accounting for recurring payment packages of three months or more, demonstrating a significant opportunity to build a predictable, scalable, and profitable business.
In Israel, where VINIA has become a household name for cardiovascular health and wellness, BioHarvest reported record sales orders of US$2.3 million in 2022, representing growth of 32% over 2021.
Fourth quarter 2022 sales orders were US$635,000, representing growth of 27% over 4Q 2021. The fourth quarter also saw the largest increase in new customers acquired as well as an all-time high in average spend per order of US$214.
VINIA has achieved a verified rating of 4.8 out of 5.0 from a reliable sample of 1,698 verified consumers, BioHarvest added.
“VINIA is a one-of-a-kind product with the unique ability to deliver measurable benefits for a large proportion of its purchasers and there is nothing better than seeing the foundational impact we are having every day on our customers' lives,” Turner continued.
“We are proud of the 2022 results and look forward to creating further substantial sales growth in 2023 whilst bringing VINIA's health and wellness benefits to more consumers in the US, Israel and other new geographies we are targeting this year.”
Cannabis and hemp commercialization 'put on hold'
BioHarvest said it has been actively pursuing North American entry into the cannabis and hemp markets. Given significant retail and wholesale pricing compression, combined with a highly uncertain regulatory environment, the company said it is also announcing an amended North American go-to-market schedule for cannabis and hemp.
It said it has decided to "put on hold" its cannabis and hemp commercialization pending the future stabilization of cannabis market conditions, and clarification of regulatory guidelines. Research and development initiatives on pharmaceutical-grade hemp and cannabis compositions will continue, the company added.
This decision for management to focus on the near-term growth of the Polyphenol business will ensure that the company remains properly funded to deliver on its revenue targets, profitability timeline, and future biotech potential, BioHarvest said, adding that the decision will not require it to change its 2023 revenue projections.
"I am very proud of the company's accomplishments in the first two- and one-half years since my inception as CEO,” BioHarvest CEO Ilan Sobel said.
“We have transformed BioHarvest from an R&D company into a full-fledged end-to-end operation, with close to tripling revenues year over year on our Polyphenol Antioxidant business, which is poised for another stellar year in 2023."
Sobel continued: “My responsibility to our shareholder partners is to achieve maximum revenue growth and profitability in the near term while minimizing dilution to shareholders. I am confident that committing our full resources to executing on the near-term Polyphenol vertical will achieve that.”
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