BioHarvest Sciences Inc. (CSE:BHSC, OTC:CNVCF) has reported a more than doubling in third-quarter revenue for its flagship VINIA product and said it is “laser-focused” on reducing production costs as it brings more scale into the business.
The company reported year-over-year growth of 113% for VINIA to US$3.24 million, and sequential growth of 18% from 2Q, as it grew customer numbers and total subscribers.
At quarter end, total active VINIA subscribers were 213% higher than the same period a year earlier, BioHarvest said, noting that 90% of revenue is generated from subscriptions, from 85% in the earlier quarter. Of those, 95% are for subscriptions for three months or more, and 23% are for six months or more.
The company noted that growth in recurring income is reflected in quarterly subscriber growth rates as well.
VINIA sales on Amazon also rose, with 3Q revenue increasing by 84% over 2Q 2023 as the product continued to achieve a best-in-class verified customer rating of 4.8 out of 5 with over 3,200 verified reviews.
The gross profit margin increased to 45% from 18% a year earlier and 40% in 2Q and is expected to continue increasing as production continues to scale, BioHarvest added.
"I am optimistic about BHSC's prospects. Our core VINIA Nutraceutical business is delivering consistent double-digit growth, and demand continues to be strong,” BioHarvest CEO Ilan Sobel commented in a statement.
“Before year-end, we will be launching our VINIA Functional Coffee, and additional VINIA-based products will be added throughout 2024, which will further add to our existing revenue momentum. We will continue to focus on driving efficiencies in both our manufacturing and in our marketing as we push towards further improving the financial performance of the company."
For the quarter, the company’s net loss narrowed to US$1.72 million, or $0.04 per share, from US$1.85 a year earlier.
It has guided for fourth-quarter revenue of US$4.2 million to US$4.5 million and said its total revenue for 2023 is likely to fall 27% short of the US$17 million it forecast in early 2023.
Due to worsening global macroeconomic conditions and the tightening of access to capital, it said it prioritized cash preservation and gross profit improvement versus revenue maximization.
However, with the continued improvement in its gross margins and an increase in production capacity, it said management will focus on maximizing revenue delivery in 2024.
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