BioHarvest Sciences Inc. CNVCF BHSC (FSE:8MV) revealed Q2 2022 sales orders of its flagship VINIA product reached a record high of $947,000, representing 99% growth compared to the same quarter of last year and 24% growth compared to Q1 2022.
BioHarvest also had a strong quarter in R&D execution, highlighted by a May 12th announcement unveiling the profile of its cannabis biomass composition produced in large-scale industrial bioreactors. BioHarvest also applied for a cannabis production license in Israel. This quarter also saw the transition to the new 20Tons/year VINIA facility in Yavneh, Israel which will enable the further scaling of the VINIA business in the US in H2, 2022 and will deliver significant cost reductions over the next 12 months.
"Our strong Q2 results demonstrate our consistent growth and represent a validation of our major assumptions and performance so far," stated CEO Ilan Sobel. "BioHarvest's strategy of growth remains well intact and its performance on all fronts validates its leadership in plant-based bio-technology."
Q2 sales orders in the US reached $376,000 (representing 460% growth over Q2 2021 and 21% growth over Q1 2022). The US sales metrics were healthy and demonstrate steady improvement. For example, customer average revenue per unit for the last 6 months was $229 compared to over the last 12 months at $198. The percentage of 3 month or greater subscriptions increased from 56% of the subscription mix in Q1, 2021 to 76% for Q2, 2022. These strong results were delivered through the 2nd quarter as the company continued to manage US VINIA sales orders in line with production capacity constraints, which will be further alleviated early in the 2nd half of 2022 with the increased manufacturing scale of the new 20 ton/year facility, enabling increased inventory to flow through to the US market.
The Israeli market continued to demonstrate increased consumer adoption of VINIA and delivered $571,000 (39% growth over Q1 2021 and 26% growth from Q1 2022). Total customers in Israel grew at a record 51% in Q2 2022 over Q1 2022. It is also noteworthy that June saw the highest ever "average spend per order" of $203.
The second half of the 2022 marketing plan includes the addition of influencer endorsements, customer referral programs and affiliate programs as well as a focused approach addressing key lucrative market segments such as the Christian evangelical market. Given the above marketing activity, B2B pipeline opportunities and the release of the VINIA manufacturing bottle neck, the company is reiterating its 2022 sales orders guidance of $5-7 million representing a 2.5-3.5X growth over 2021.
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