Bioharvest Sciences, Inc. ((BHST)) has held its Q2 earnings call. Read on for the main highlights of the call.
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BioHarvest Sciences, Inc. recently held its earnings call, reflecting a positive sentiment overall. The company reported strong revenue growth and margin expansion, alongside successful product launches. However, these achievements were tempered by increased operating expenses and a net loss. Despite these challenges, BioHarvest remains optimistic about future growth and is actively managing cost efficiencies to achieve adjusted EBITDA breakeven.
Revenue Growth
BioHarvest Sciences reported a remarkable 41% year-over-year revenue increase, reaching $8.5 million. This growth was in line with the company’s guidance and was driven by a balanced performance across vinia.com and Amazon, as well as contributions from CDMO services.
Gross Margin Expansion
The company achieved an impressive gross margin expansion of 800 basis points, rising to 60% from 52% in the same quarter last year. This improvement was attributed to the deployment of larger bioreactors, enhanced manufacturing yields, and continued digitization efforts.
Product and CDMO Milestones
BioHarvest launched new products, including the VINIA Daily 2X Formula chews and an expanded SuperFood Tea line. The CDMO division also reached significant milestones, with a pharmaceutical project advancing to Stage 2.
New Initiatives and Programs
The company announced the VINIA Health Pros’ Professional Affiliate program and the upcoming VINIA Blood Flow Hydration Solution. These initiatives aim to disrupt the $13 billion electrolyte drinks market.
Increased Operating Expenses
Operating expenses rose to $6.9 million from $4.8 million, primarily due to increased marketing spend and development costs associated with the Health Pros’ Affiliate program.
Net Loss
BioHarvest reported a net loss of $4 million for the second quarter, compared to a net loss of $0.7 million in the same period last year. This was partly due to higher marketing and development expenses.
Tariff Impact
The implementation of tariffs resulted in a 15% impact on materials shipped from Israel to the U.S. However, the company managed this through cost efficiencies.
Forward-Looking Guidance
Looking ahead, BioHarvest Sciences aims to achieve adjusted EBITDA breakeven by Q4 2025. The company plans to leverage strategic initiatives, such as the VINIA Health Pros’ Professional Affiliate program and the launch of the VINIA Blood Flow Hydration Solution, to support this goal.
In summary, BioHarvest Sciences, Inc. showcased strong financial performance and strategic growth initiatives during its earnings call. Despite challenges like increased operating expenses and net losses, the company remains optimistic about future growth, driven by robust revenue growth, margin expansion, and innovative product launches.