BioHarvest Sciences Inc. Reports Record Sales Results in Q3 2022 with Strong Momentum Building on All Fronts
- VINIA® sales orders reached a record high of USD 1.71M representing 145% growth compared to Q3 2021 and 81% growth compared to Q2 2022
- Q3 Sales in the US delivered 3X the sales of Q2 2022 and crossed the USD 1 Million mark
- Strong sales momentum and increase in subscribers support guidance to achieve USD 5M-7M sales orders in in 2022, and cash flow positive in 2023
- Unique Cannabis composition (analysis performed by independent 3rd party certified laboratory) will be announced on October 25th
Vancouver, British Columbia and Rehovot, Israel--(Newsfile Corp. - October 3, 2022) - BioHarvest Sciences Inc. (CSE: BHSC) (OTCQB: CNVCF) (FSE: 8MV) ("BioHarvest" or "the Company") today announced Q3 2022 sales orders of its flagship VINIA® product reached a record high of USD 1.71M, representing 145% Year over Year growth and 81% growth compared to Q2 2022.
Following the Company's mid-August scale up of its marketing activities, Q3 sales orders in the US reached a record USD 1.08M (350% growth over Q3 2021 and 200% growth over Q2 2022). This included an impressive quarter on quarter increase of 5X in the number of new customers driven by the health benefits that VINIA® delivers and the strong clinical and scientific foundations of the product. U.S. VINIA® sales metrics continue to improve and are building a healthy and prosperous Nutraceuticals business. For example: In the 3rd quarter, 85% of total VINIA® customers who purchased via VINIA.com, are subscription based and 90% of active subscribers are for 3 months or greater. This demonstrates customer commitment to the VINIA® brand and represents a significant customer lifetime value. Cost of customer acquisition in Q3 2022 declined by more than 50% compared to Q2 2022, demonstrating the proficiency of the marketing team to skillfully employ the most efficient media mix (including TV, google and facebook) with consumers. In Q4, national radio and other channels will be tested to assess their ability to further improve overall communication efficiency. VINIA® continues to achieve a best-in-class verified customer rating of 4.8 out of 5 with over 830 verified reviews, demonstrating VINIA®'s ability to make a significant foundational positive impact to consumers' lives.
The Israeli market continues to demonstrate increased consumer adoption of VINIA® and delivered a record USD 627k (39% growth over Q3 2021 and 10% growth from Q2 2022). Total new customers in Israel grew 19% in Q3 2022 over Q2 2022. VINIA® has a strong customer base in Israel and is becoming a household recognized brand. Average $ spend per transaction reached an all-time high of US$210 per transaction in September.
Scott McCune, founder of McCune Sports and former SVP in the Coca-Cola Company (leading Coca-Cola's global strategies and organizations for integrated marketing) and member of the board of advisors of BioHarvest said, "These results are very impressive especially when you look at how the Company is building best-in-class commercial and marketing capabilities for VINIA®, which is the first of many products they will bring to North America. Decreasing the cost of acquisition and the fast scaling of the business are encouraging achievements as they look to build a highly profitable business and world class brand."
In this quarter, BioHarvest has made significant progress in the Cannabis vertical. The Company continues to build breakthrough capabilities in eliciting cannabinoids in its bioreactors.
On October 25th, BioHarvest plans to announce the details of its unique composition (analysis performed by an independent third-party certified laboratory) and will discuss them during the Company's shareholder update on that same day. Dr. Yochi Hagay, the co-founder and CTO who will attend this update call, stated, "It will be a special pleasure for me to share our R&D achievements with our shareholder partners, as our team continues to make breakthroughs in the Plant cellular biology field."
Among the Company's achievements in this quarter, as recently announced and in recognition of the sustainability impact of BioHarvest's Bio Plant Cellicitation™ technology, the Business Intelligence Group awarded the Company with the prestigious Sustainability Leadership Award.
"I am beyond pleased with our strong Q3 results as they validate the strength of our business model and of the critical capabilities we have built in both the Nutraceutical and Cannabis verticals;" said CEO Ilan Sobel, adding, "These Q3 Sales results and our ongoing breakthroughs in the Cannabis development represent significant achievements in our Biotech journey. The record results of Q3 show that we are on the right path for healthy growth and to achieve our financial goals, which include becoming cash flow positive by the end of 2023."
Q3 Shareholder Update October 25, 11am PST |2PM EST
All shareholder partners, investors, media, and members of the scientific community are invited to register here: https://us02web.zoom.us/webinar/register/WN_iFRtgArbQfO6Wgz0QCh5BA.
The presentation will be approximately 45 minutes, followed by a live question and answer session. All registrants will be emailed a recording of the session., and any questions regarding the Company or the Q3 2022 Shareholder Update can be sent to email@example.com.
About BioHarvest Sciences Inc.
BioHarvest Sciences Inc. (CSE: BHSC) is a fast-growing Biotech firm listed on the Canadian Securities Exchange. BioHarvest has developed a patented bio-cell growth platform technology capable of growing the active and beneficial ingredients in fruit and plants, at industrial scale, without the need to grow the plant itself. This technology is economical, ensures consistency, and avoids the negative environmental impacts associated with traditional agriculture. BioHarvest is currently focused on nutraceuticals and the medicinal cannabis markets. Visit: www.bioharvest.com.
BioHarvest Sciences Inc.
Ilan Sobel, Chief Executive Officer
For further information, please contact:
Dave Ryan, VP Investor Relations & Director
Phone: 1 (604) 622-1186
Information set forth in this news release includes forward-looking statements that are based on management's current estimates, beliefs, intentions, and expectations, and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. There is no assurance that strong sales metrics experienced to date will result in future demand or that proposed additional marketing expenditures will result in increased sales. Markets for nutraceuticals are unpredictable and subject to changes in consumer tastes and trends as well as economic factors beyond our control. Delays and cost overruns may result in delays achieving our objectives obtaining market acceptance, and regulatory approvals for geographic expansion are subject to risk and cannot be guaranteed. There is no assurance that the Company sales revenue for 2022 will reach USD 5 to 7 million and there is no assurance that the Company cash flow breaking point will be achieved in 2023. There is no assurance of commercial availability of our Cannabis product in 2022 or that the Company achieves the conversion of the two tons VINIA® facility to Cannabis production in 2022. These things are subject to construction and approval delays and uncertainties that may be beyond the control of BioHarvest. Projected sales of Cannabis will require the Company to obtain production and/or export licensing which cannot be assured.
All forward-looking statements are inherently uncertain and actual results may be affected by a number of material factors beyond our control. Readers should not place undue reliance on forward-looking statements. BHSC does not intend to update forward-looking statement disclosures other than through our regular management discussion and analysis disclosure
Readers are cautioned that revenue alone do not give an accurate picture of the financial position of the Company and should be read in the context of the Company's annual and quarterly financial statements
Neither the Canadian Securities Exchange nor its Regulation Services Provider accept responsibility for the adequacy or accuracy of this release.
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