BioHarvest Sciences Inc. (CSE:BHSC, OTC:CNVCF) reported robust financial performance for the third quarter ending September 30, 2024.
The company achieved a 101% year-over-year revenue increase to $6.5 million, surpassing management's guidance.
This growth was fueled by a 128% rise in VINIA subscribers and the success of the company’s “VINIA Inside” product strategy, which introduced SuperFood tea to complement the SuperFood coffee launched last year.
Gross profit increased by 157% year-over-year to $3.7 million from $1.4 million.
Gross margins increased by 1,200 basis points to 57% of sales during Q3, up from 45% in the year-ago quarter the benefits of increased manufacturing scale, improved manufacturing yields, and cost reductions in downstream packaging and delivery costs.
The company reported a net loss of $2.7 million or $0.16 per share, compared to $1.7 million or $0.13 per share for Q3 2023.
"The third quarter of 2024 delivered continued progress in our Products and CDMO business segments highlighted by continued outperformance on the topline as we doubled down on growth, with third quarter revenue of $6.5 million driven by continued momentum in our VINIA subscription business and a strong response to our incremental coffee product line, resulting in over a 100% increase in Products revenue,” BioHarvest Sciences CEO Ilan Sobel said in a statement.
“We continued to make steady progress with our Contract Development and Manufacturing Organization (CDMO) Services Business Unit as well, with a highly focused pipeline of impactful prospective customers, some of which we expect to announce in the near-term.”
Looking ahead, Sobel said the company expects continued growth and margin improvement in its Products division driven by VINIA sales and incremental products such as coffee and teas.
“While geopolitical events impacted margins due to increased air freight costs and the delayed implementation of certain cost-saving measures, we believe we are well positioned to see notable margin improvements throughout the first half of 2025,” the CEO noted.
In its CDMO division, he highlighted progress progress on contracted research projects as well as the buildout of its B2B sales pipeline.
“With our listing to the Nasdaq Global Market now complete, we believe we are well positioned to unleash the power of a 'VINIA Inside' strategy that we believe will help drive sustainable, long-term value creation for our shareholder partners," Sobel concluded.