BioHarvest Sciences Inc. (CSE:BHSC, OTC:CNVCF) saw its product revenue jump 116% year-over-year in the second quarter driven by strong sales of its flagship red grape-based nutraceutical product VINIA.
Total revenues grew 119% to $6 million from $2.8 million in the year-ago quarter, marking a 13% sequential increase.
Gross margins also improved to 52% from 40% in the year-ago quarter attributed to the company’s ongoing margin optimization efforts.
The company narrowed its net loss to $0.7 million or $0.04 per share from $2.9 million or $0.21 per share in Q2 2023.
"In our products division, monthly direct-to-consumer revenue growth in our core VINIA business has resulted in five consecutive quarters of 10% plus revenue increases, and in May 2024 we reached the $2 million monthly sales orders milestone for the first time, representing a 101% increase as compared to May 2023,” CEO Ilan Sobel highlighted.
“June sales orders also surpassed that $2 million mark, and the current year over year sales growth was attributable to strong VINIA subscription rates, with second quarter U.S. total subscriber counts increasing 135% versus the same quarter in 2023.”
Operational highlights for Q2 included announcing an agreement for a new corporate campus consolidating its offices, R&D footprint and a planned 50-ton production facility in Yavne, Isreal and securing two contracts to create complex molecules for customers under its newly launched Contract Development and Manufacturing Organization (CDMO) Services Business Unit.
“This business unit also provides another potential avenue towards monetization in the form of royalties on future commercial sales of any molecule we may develop, which could provide a recurring revenue base over the long term,” Sobel said.
“Looking ahead, I firmly believe we are well positioned to achieve our goal of uplisting to the Nasdaq exchange by year-end and continuing to improve margins, scale production capacity, and bring to market an expanded portfolio of Health and Wellness products.”
BioHarvest said it expects its third quarter revenue to be at least $6.5 million.