BioHarvest Sciences Reports Fourth Quarter and Full Year 2024 Financial Results

Rhea-AI Summary

BioHarvest Sciences (NASDAQ: BHST) reported strong Q4 2024 financial results with revenues growing 62% to $7.3 million, exceeding guidance. Full-year 2024 revenues increased 99% to $25.2 million with gross margins expanding 1,000 basis points to 55%.

Key highlights include a CDMO partnership with Tate & Lyle for plant-based sweeteners development, successful Nasdaq Global Market uplisting, and VINIA® subscribers surpassing 50,000. The company launched VINIA® SuperFood tea line following successful coffee line introduction which generated $2.3 million since December 2023.

Q4 gross profit increased 80% to $4.1 million (56.7% margin), while marketing expenses decreased to 40.4% of revenue. Management projects Q1 2025 revenues of at least $7.8 million and expects adjusted EBITDA breakeven in H2 2025. The company ended Q4 with $2.4 million cash, subsequently raising $3.9 million in debt financing.

Positive

• Q4 revenue grew 62% YoY to $7.3M, exceeding guidance
• Full year 2024 revenue up 99% to $25.2M
• Gross margins expanded 1,000 basis points to 55%
• Strategic CDMO partnership with Tate & Lyle secured
• VINIA subscriber base exceeded 50,000
• Marketing expenses decreased from 50% to 40.4% of revenue
• Successfully uplisted to Nasdaq Global Market

Negative

• Net loss of $3.0M in Q4 2024
• Cash position decreased to $2.4M from $5.4M YoY
• Required additional $3.9M debt financing post-quarter
• Still not EBITDA positive

Insights

Financial Analyst

BioHarvest's Q4 and full-year 2024 results demonstrate exceptional revenue growth with Q4 revenues increasing 62% year-over-year to $7.3 million and full-year revenues growing 99% to $25.2 million. This outperformance relative to management guidance signals strong execution and market reception.

The gross margin expansion is particularly impressive, with a 600 basis point improvement in Q4 to 57% and a 1,000 basis point improvement for the full year to 55%. This reflects increasing production scale, improved manufacturing yields through digitization, and cost optimization measures.

The company is demonstrating meaningful operating leverage with G&A expenses declining 4% year-over-year and marketing expenses decreasing to 40.4% of revenue from 50.0% in the prior-year quarter. This efficiency improvement is crucial for their path to profitability.

While still posting a net loss of $3.0 million for Q4, this represents a substantial improvement from the $7.2 million loss in Q4 2023. Their adjusted EBITDA loss of $1.8 million shows 25% improvement year-over-year, supporting management's projection of achieving adjusted EBITDA breakeven in H2 2025.

The subscriber milestone of 50,000+ VINIA users establishes a solid recurring revenue foundation. The post-quarter debt raise of $3.9 million addresses near-term capital needs but isn't a permanent solution to the $3 million cash burn indicated by their year-end cash position.

BioHarvest's successful Nasdaq uplisting enhances visibility to institutional investors and could improve future financing options as they progress toward profitability.

Business Strategy Expert

BioHarvest is executing a well-crafted dual growth strategy through both consumer products and B2B services. Their "VINIA Inside" approach represents smart product architecture - leveraging their core plant cell technology across multiple formats (capsules, coffee, tea, chews) to increase consumption occasions and attract different consumer segments.

The Tate & Lyle partnership marks a significant validation of their Botanical Synthesis platform technology. This CDMO (Contract Development and Manufacturing Organization) model creates a capital-efficient revenue stream that leverages their R&D infrastructure and proprietary technology without the marketing expenses associated with consumer products. The plant-based sweetener market represents a substantial opportunity, especially given growing consumer demand for natural alternatives.

The company's operational improvements are strategic rather than merely cost-cutting. Their investments in digitizing production processes and implementing larger bioreactors with 22% increased capacity demonstrate a focus on scalable efficiency. The planned consolidation of operations into their new Yavneh campus should further optimize their manufacturing economics.

Their subscriber growth to 50,000+ active users creates predictable revenue that can fund ongoing innovation. The $2.3 million in VINIA Functional Coffee sales since its December 2023 launch shows their ability to successfully extend the brand into adjacent categories.

The CDMO pipeline they reference suggests potential for additional strategic partnerships beyond Tate & Lyle. This diversified business model reduces risk while accelerating revenue growth through multiple channels. Their technology applied to both consumer products and industrial applications creates significant barriers to entry for competitors.

Fourth Quarter Revenues Grew 62% to $7.3 Million, Exceeding Prior Management Guidance, with Full Year Revenues Increasing 99% Year-Over-Year to $25.2 Million

CDMO Division Secures Anchor Partnership with Tate & Lyle to Develop Next Generation of Plant-Based Sweeteners

Rehovot, Israel--(Newsfile Corp. - March 31, 2025) - BioHarvest Sciences Inc. (NASDAQ: BHST) (FSE: 8MV0) ("BioHarvest" or the "Company"), a company pioneering its patented Botanical Synthesis technology platform, today reported its financial and operational results for the fourth quarter and full year ended December 31, 2024.

Fourth Quarter 2024 & Subsequent Operational Highlights
All figures stated in this news release are in U.S. dollars unless stated otherwise.

• Total revenues for the fourth quarter of 2024 increased 62% year-over-year to $7.3 million, exceeding prior management guidance, with gross margins expanding by 600 basis points to 57% of revenue.
• Full Year 2024 revenues increased 99% year-over-year to $25.2 million, with gross margins expanding by 1,000 basis points to 55% of revenue.
• Continued to realize a high degree of operating leverage in the fourth quarter, with general and administrative expenses falling 4% year-over-year and marketing expenses decreasing to 40.4% of revenue, as compared to 50.0% in the same year-ago quarter.
• Management expects first quarter 2025 revenues of at least $7.8 million and expects to reach adj. EBITDA breakeven in the second half of 2025.
• Announced CDMO partnership with Tate & Lyle, a world-leader in ingredient solutions, to develop the next-generation of plant-based sweeteners.
• Successfully uplisted to the Nasdaq Global Market on Tuesday, November 12, 2024.
• Total VINIA® subscribers increased surpassed 50,000 as of February 2025, with $50M of cumulative revenue realized since launch.
• Launched functional VINIA® SuperFood tea line, leveraging the success of the Company's "VINIA® Inside" strategy following the launch of VINIA® SuperFood Coffee in December 2023.
• Announced that in vitro testing shows the Company's proprietary olive cell compound reduces fat accumulation in liver cells.
• Presented at leading small-cap investor conferences including the 37^th Annual ROTH Conference, WeBull Consumer Stocks Webinar, and the LD Micro Main Event XVII Conference.

Management Commentary

Ilan Sobel, CEO of BioHarvest Sciences, said: "The fourth quarter of 2024 marked another period of strong execution across both our Products and CDMO business units, highlighted by 99% year-over-year revenue growth that consistently exceeded guidance. Our VINIA® product lines continued to outperform, surpassing 50,000 active subscribers and benefiting from the successful rollout of VINIA® Functional Coffee line, which has sold $2.3 million in aggregate since launching in December 2023. Our recently launched VINIA® SuperFood Tea line is extremely promising as well, building upon our proven 'VINIA® Inside' strategy to drive incremental consumer adoption by diversifying our product portfolio into coffees, teas and chews, while concurrently positioning us to capture a growing share of the plant-based nutraceuticals market.

"We also made meaningful strides in our CDMO Services division, leveraging our proven technology capabilities, a robust lab infrastructure and custom AI tools that optimize R&D processes to create a compelling value proposition to develop plant-based non-GMO biologic compounds for pharma, nutraceutical, nutrition and cosmetics companies. This new offering ultimately led to a landmark partnership with Tate & Lyle to co-develop next-generation plant-based sweeteners, a major validation of our Botanical Synthesis platform. This agreement lays the groundwork for future expansion into additional high-value molecule categories, leveraging our ability to produce plant-derived compounds sustainably and at scale. Our CDMO contract pipeline remains robust, and we are actively advancing discussions with additional strategic partners in other targeted industry verticals, where we expect to sign several additional CDMO clients through year-end.

"Our focus on operational efficiency continues to drive robust gross margin improvement, with gross margins increasing due to higher production scale, improved manufacturing yields due to digitization of all key processes, and cost optimization measures. Despite temporary headwinds from increased logistics costs, our initiatives-including the digitization of our production processes, the operationalizing of larger bioreactors with 22% increased capacity, and the upcoming consolidation of operations into our new Yavneh campus-are expected to further enhance our profitability in 2025. We remain on track to achieve adjusted EBITDA breakeven in the second half of the year.

"With our successful Nasdaq uplisting now complete, we are well-positioned to accelerate our growth strategy and further engage with both institutional and retail investors who recognize the disruptive commercial applications of Botanical Synthesis. As we look ahead to 2025, we are committed to continued aggressive growth in both our Products and Services business units - growing our "VINIA® inside" product lines and subscriber bases, adding new CDMO partners, and delivering long-term shareholder value through a diversified and high-margin business model," concluded Sobel.

Fourth Quarter 2024 Financial Results
All figures stated in this news release are in U.S. dollars unless stated otherwise.

Revenues for the fourth quarter of 2024 increased 62% to $7.3 million - which exceeded management's prior revenue guidance - as compared to $4.5 million in the fourth quarter of 2023. The increase was largely attributable to growth in VINIA®, which exceeded 50,000 active subscribers as of February 2025.

Gross profit increased 80% to $4.1 million, or 56.7% of total revenue, in the fourth quarter of 2024, as compared to $2.3 million, or 50.7% of total revenue, in the same year-ago quarter. The increase in gross margin was primarily attributable to the benefits of increased manufacturing scale, improved manufacturing yields, and cost reductions in downstream packaging and delivery costs.

Total operating expenses for the fourth quarter totaled $5.8 million, as compared to $4.8 million in the same year-ago quarter. The increase in operating expenses was primarily due to increased marketing spend - which shrunk on a percent of revenue basis to 40.4% of revenue, as compared to 50.0% in the same year ago quarter - and higher expenses from the CDMO services division. General and administrative expenses decreased 4% in the fourth quarter, reflecting increasing operating leverage as the Company continues to scale.

Net loss for the fourth quarter of 2024 totaled $3.0 million, or $0.17 per basic and diluted share, as compared to a net loss of $7.2 million, or $0.53 per basic and diluted share, in the same year-ago quarter.

Adjusted EBITDA loss - a non-IFRS measure - totaled $1.8 million, as compared to an adjusted EBITDA loss of $2.4 million in the same year-ago quarter.

Cash and cash equivalents as of December 31, 2024, totaled $2.4 million, as compared to $5.4 million as of December 31, 2023. Subsequent to quarter end, the Company raised $3.9 million in attractive debt financing, primarily from existing investors.

Earnings Conference Call

Management will host an investor conference call and webcast at 4:30 p.m. Eastern time today to discuss the Company's fourth quarter 2024 financial results, provide a corporate update, and conclude with a question-and-answer session from telephone participants. To participate, please use the following information:

Fourth Quarter FY2024 Results Conference Call
Date: Monday, March 31, 2025
Time: 4:30 p.m. Eastern time
U.S./Canada Dial-in: 1-844-825-9789
International Dial-in: 1-412-317-5180
Conference ID: 10197712
Webcast: BHST Q4 FY2024 Earnings Conference Call

Please dial in at least 10 minutes before the start of the call to ensure timely participation.

A telephone playback of the call will be available through Monday, April 14, 2025. To listen, call 1-844-512-2921 within the United States and Canada or 1-412-317-6671 when calling internationally, using replay pin number 10197712. A webcast replay will also be available at the webcast link above.

About BioHarvest Sciences Inc.

BioHarvest Sciences Inc. (NASDAQ: BHST) (FSE: 8MV0) is a leader in Botanical Synthesis, leveraging its patented technology platform to grow plant-based molecules, without the need to grow the underlying plant. BioHarvest is leveraging its botanical synthesis technology to develop the next generation of science-based and clinically proven therapeutic solutions within two major business verticals; as a contract development and production organization (CDMO) on behalf of customers seeking complex molecules, and as a creator of proprietary nutraceutical health and wellness products, which includes dietary supplements. To learn more, please visit www.bioharvest.com.

Use of Non-IFRS Financial Measures

This press release includes the following non-IFRS measure - Adjusted EBITDA, which is not a measure of financial performance under IFRS and should not be considered as an alternative to net income as a measure of financial performance. Adjusted EBITDA represents net income (loss) before interest, taxes, depreciation and amortization adjusted for stock-based compensation and fair value adjustment of convertible loan and or warrants as well as issuance of warrants. The company believes this non-IFRS measure, when considered together with the corresponding IFRS measures, provides useful information to investors and management regarding financial and business trends relating to the company's results of operations. However, this non-IFRS measure has significant limitations in that it does not reflect all the costs and other items associated with the operation of the company's business as determined in accordance with IFRS. In addition, the company's non-IFRS measures may be calculated differently and are therefore not comparable to similar measures by other companies. Therefore, investors should consider non-IFRS measures in addition to, and not as a substitute for, or superior to, measures of financial performance in accordance with IFRS. A reconciliation of Adjusted EBITDA to net income, its corresponding IFRS measure, is shown below.

IFRS NET INCOME (LOSS) TO ADJUSTED EBITDA RECONCILIATION
(Unaudited)
(U.S dollars in thousands)

				THREE MONTHS ENDED
				31-Dec-24
				2024			2023
	Net Income (Loss)			($2,956)			($7,235)
	Depreciation and Amortization			341			216
	Taxes			8			-
	Interest, net			609			554
	Fair Value adjustment of derivative liability - Convertible loan			21			3,447
	Fair Value adjustment of derivative liability - Warrants			-			526
	Share Based Compensation			146			133
	Adjusted EBITDA (Non-IFRS)			($1,831	)		($2,359	)

 

Forward-Looking Statements

Information set forth in this news release might include 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. Launching new products is subject to risks and uncertainties including the risk that the market will not accept the product or that government approvals required for sale or import of the products will not be obtained. There is never an assurance that any product set will successfully disrupt established product categories. There is no assurance that the Company will maintain or improve current financial performance, as revenues and margins are dependent on a combination of factors such as supply chain efficiencies, input cost stability, marketing efficiencies and uncertain consumer preferences. Revenue projections are estimates and there is no assurance will occur when estimated as the timing is dependent on consumer acceptance and cost stability and other factors beyond company control. For the CDMO Services Business Unit, there is no assurance of additional future contracts, and readers are cautioned that increased revenue is not necessarily an increase in net income or profitability as costs will likely increase as well. 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 disclosures. There is no assurance that our initiatives such as digitization of production processes, increased capacity bioreactors, and consolidation of operations will enhance profitability which is subject to risks and uncertainties including changes in consumer demand, unexpected cost increases, unanticipated production disruptions and a myriad of other unpredictable factors that may impact profitability.

BioHarvest Corporate Contact:
Dave Ryan, VP Investor Relations
+1 (604) 622-1186
info@bioharvest.com

Investor Relations Contact:
Lucas A. Zimmerman
Managing Director
MZ Group - MZ North America
+1 (949) 259-4987
BHST@mzgroup.us

BioHarvest Sciences Inc.
Consolidated Statements of Financial Position
U.S. dollars in thousands

				Note			As of December 31,
							2024			2023
	Assets
	Current assets
	Cash and cash equivalents					$	2,390		$	5,355
	Trade accounts receivable			4			1,116			808
	Other accounts receivable			5			695			423
	Inventory			6			3,655			2,466
	Total current assets						7,856			9,052
	Non-current assets
	Restricted cash						371			179
	Property, plant and equipment, net			7			7,750			(*)3,926
	Right-of-use assets, net			8			9,024			(*)1,845
	Total non-current assets						17,145			5,950
	Total assets					$	25,001		$	15,002
	Liabilities
	Current liabilities
	Trade accounts payable					$	3,525		$	1,778
	Other accounts payable			11			3,609			(*)2,072
	Deferred revenue						906			(*)718
	Lease liabilities			8			772			382 (*)
	Derivative liability - Warrants			9			-			526
	Loans			10			3,905			-
	Convertible loans			14			-			20,533
	Liability for Agricultural Research Organization			25			1,140			-
	Accrued liabilities						401			458
	Total current liabilities						14,258			26,467
	Non-current liabilities
	Lease liabilities			8			9,141			1,425
	Liability for Agricultural Research Organization			25			272			(*)1,963
	Total non-current liabilities						9,413			3,388
	Shareholders' equity (deficit)
	Share capital and contributed surplus			12			97,748			68,652
	Accumulated deficit						(96,418	)		(83,505	)
	Total Shareholders' equity (deficit)						1,330			(14,853	)
	Total liabilities and shareholders' equity (deficit)					$	25,001		$	15,002

 

(*) Certain comparative amounts have been reclassified to conform to the current year presentation (Note 2b)

BioHarvest Sciences Inc.
Consolidated Statements of Loss and Other Comprehensive Loss
U.S. dollars in thousands, except per share data

				Note			Year Ended December 31
							2024			2023
	Revenues			18		$	25,188		$	12,672
	Cost of revenues			19			11,246			7,039
	Gross profit						13,942			5,633
	Operating expenses
	Research and development			20			4,797			3,369
	Sales and marketing			21			11,733			7,748
	General and administrative			22			4,401			4,482
	Total operating expenses						(20,931	)		(15,599	)
	Operating loss						(6,989	)		(9,966	)
	Finance income			24			-			26
	Finance expenses			23			5,916			2,624
	Net loss before tax						(12,905	)		(12,564	)
	Taxes on income			15			8			-
	Net loss and comprehensive loss					$	(12,913	)	$	(12,564	)
	Basic and Diluted loss per share						(0.80	)		(*) (0.93	)
	Weighted Average Number of Shares Outstanding						16,193,787			(*) 13,533,160

 

(*) After giving effect to the share consolidation indicated in (Note 12b)

BioHarvest Sciences Inc.
Consolidated Statements of Cash Flows
U.S. dollars in thousands

				Year ended December 31,
				2024			2023
	Cash flows from operating activities:
	Net loss		$	(12,913	)	$	(12,564	)
	Adjustments to reconcile net loss to net cash used in operating activities:
	Depreciation and Amortization			1,251			840
	Fair value adjustments of Convertible loans			3,503			1,024
	Fair value adjustments of derivative liability - Warrants			408			526
	Re-assessment of Liability for Agricultural Research Organization			(205	)		96
	Interest over Agricultural Research Organization liability			403			402
	Finance expense (income), net			823			368
	Share based compensation (including cash-settled share-based payment)			601			563
	Changes in assets and liabilities items:
	Change in trade accounts receivable			(308	)		(262	)
	Change in other accounts receivable			(286	)		240
	Change in inventory			(1,189	)		(1,088	)
	Changes in trade accounts payable, other accounts payable and accrued liabilities			1,040			(*)1,511
	Changes in deferred revenue			188			(*)354
	Cash used in operations			(6,684	)		(7,990	)
	Interest paid			-			(532	)
	Net cash used in operating activities			(6,684	)		(8,522	)
	Cash flow from investing activities:
	Purchase of property and equipment			(2,835	)		(1,474	)
	Deposit of restricted cash for bank guarantee, net of drawing			(192	)		-
	Net cash used in investing activities			(3,027	)		(1,474	)
	Cash flow from financing activities
	Repayments of lease liabilities			(579	)		(364	)
	Proceeds from drawing loans, net of repayments			3,314			-
	Exercise of options and warrants by employees and consultants			408			403
	Proceeds from issuance of units of securities			4,330			-
	Proceeds from issuance of convertible loans			-			13,517
	Repayments of principal and interest of convertible loans			(693	)		-
	Net cash provided by financing activities			6,780			13,556
	Exchange rate differences on cash and cash equivalents			(34	)		59
	Increase (decrease) in cash and cash equivalents			(2,931	)		3,560
	Cash and cash equivalents at the beginning of the year			5,355			1,736
	Cash and cash equivalents at the end of the year		$	2,390		$	5,355
	Significant non-cash transactions:
	Conversion of Convertible loans into shares			20,527			2,557
	Purchase a property in installment agreement			1,440			-
	Recognition of Right of use assets and Lease liabilities			8,351			229

 

(*) Certain comparative amounts have been reclassified to conform to the current year presentation (Note 2b)

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/246743

FAQ

What were BioHarvest Sciences (BHST) Q4 2024 revenue and growth figures?

BHST reported Q4 2024 revenues of $7.3 million, representing 62% year-over-year growth, with gross margins expanding to 57%.

How many VINIA subscribers does BHST have as of February 2025?

BHST surpassed 50,000 VINIA subscribers as of February 2025, generating $50M in cumulative revenue since launch.

What is BioHarvest's (BHST) partnership with Tate & Lyle about?

BHST partnered with Tate & Lyle through its CDMO division to develop next-generation plant-based sweeteners.

When does BHST expect to reach adjusted EBITDA breakeven?

Management expects to reach adjusted EBITDA breakeven in the second half of 2025.

How much revenue has BHST's VINIA Functional Coffee line generated?

The VINIA Functional Coffee line has generated $2.3 million in sales since launching in December 2023.