The following is a summary of the BioHarvest Sciences Inc. (BHST) Q3 2024 Earnings Call Transcript:

Financial Performance:

• BioHarvest Sciences reported Q3 2024 revenue of $6.5 million, a 101% increase from the previous year, driven by strong VINIA sales.

• Gross profit margin increased to 57%, reflecting a 1,200 basis point improvement year-over-year primarily due to increased manufacturing scale, improved yields, and cost reduction in downstream packaging.

• Net losses totaled $2.7 million, or $0.16 per basic and diluted share, while adjusted EBITDA loss totaled $2 million.

Business Progress:

• Continued growth in the VINIA subscriber base and successful launch of VINIA SuperFood functional tea lineup. Anticipated launches include VINIA Pro chews and hydration solutions targeting active consumers.

• Expansion into additional markets with regulatory efforts underway, and a significant focus on digitization to optimize production and gross margin outcomes.

• Development of the CDMO business unit, focusing on contract development and manufacturing of botanically synthesized molecules.

Opportunities:

• Expansion into the Canadian market following recent regulatory approval, with further exploration into other strategic markets.

• Broadening the product portfolio in direct-to-consumer business by introducing new VINIA Inside products such as functional coffees and teas.

• Entry into hydration and wellness categories, leveraging superior science and clinical trial-backed efficacy.

Risks:

• Challenges and delays related to the sourcing of critical raw materials for their CDMO business unit could impact project timelines and revenue recognition from these engagements.

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