BioHarvest Sciences Inc. (CSE:BHSC, OTC:CNVCF) saw its first quarter revenue surge almost 150% over the year-ago period driven by continued strong sales of its VINIA red grape superfood.
Revenue for the quarter was US$5.34 million, up from US$2.2 million in the year-ago quarter and up 18% sequentially.
This topped the company’s guidance of revenue in the range of US$5.2 million to US$5.3 million.
Gross margins improved to 56% from 37% in the year-ago period.
Operational highlighted from the first quarter included the launch of the company’s Contract Development and Manufacturing Organization (CDMO) business which has signed two contracts to develop patentable, plant-based molecules.
The company also made several key appointments to lead initiatives in its CDMO business unit and announced an agreement for a new corporate campus which will consolidate its corporate offices, research and development efforts, and a future planned 50-ton facility in one location.
Ilan Sobel, BioHarvest CEO, noted “significant direct-to-consumer growth" in the company’s core VINIA business during the first quarter of 2024.
“In the US, total subscriber counts increased 122%, while marketing costs increased by only 39% over the same period in the prior financial year,” he said.
“We anticipate that the expansion of our ‘VINIA Inside’ products will continue to drive consistent near-term revenue growth. Our next product launches will see us complete our Hot Beverage Strategy for 2024, as we will introduce Nespresso-compatible coffee pods, and a range of teas, featuring both Breakfast and Green teas, available in both Keurig-compatible pods and tea bags."
The company expects second-quarter revenue in the range of US$5.7 to $6 million and to reach earnings before interest, taxes, depreciation and amortization (EBITDA) breakeven in the second half of the year.
"Looking ahead, we stand in a stronger position than ever to deliver shareholder value with consistent delivery of both quarter-on-quarter revenue and margin improvement in our Product Business Unit, and by leveraging our proven botanical synthesis platform in our CDMO Services Business Unit,” Sobel commented.
“Taken together, we believe we remain on track to achieve EBITDA break even and secure our uplisting to the Nasdaq Stock Market in the second half of 2024.”