Bee Vectoring Technologies International Inc. has announced the highlights on the progress of its business in the third quarter of 2022 (Q3 FY22).
"The Company has made significant progress during Q3 in growing US revenues, diversifying our revenue base beyond the Georgia blueberry market, and improved profitability," said Ashish Malik, CEO of BVT. "We also accomplished key milestones related to market expansion and development of new revenue streams. The Company is well positioned to deliver on our business strategy as we expand the target market and bring our unique technologies to farmers around the world."
"BVT's successful penetration of multiple US markets provides the Company with significant growth opportunities, and this diversification makes revenues (results) less susceptible to variability from the kinds of external conditions we saw in Georgia during the 2022 growing season," said Ashish Malik, CEO of BVT.
In Georgia, BVT's largest market, growers faced severe weather and hard freezes during the blueberry bloom period, causing partial or complete crop loss. This was on top of increasing supply costs: fertilizer prices doubled while fuel and other chemical farming products increased by up to 40%. But while many agriculture suppliers saw significant decreases in sales orders, BVT maintained the same sales levels for the Southeast, despite these challenges.
"Offsetting the relatively flat sales in Georgia, we more than doubled revenues in other US markets, led by a tripling of sales commitments and managed acres in the Pacific Northwest," said Ian Collinson, Sales Manager at BVT. "We also secured our first sales commitment in California (which will be reflected in Q4 results) and built strong relationships with key influencers in Michigan and New Jersey, which will (should) drive further growth in those markets."
Overall profitability significantly improved in Q3 FY22, with gross margins for the 9 months ending June 30, 2022, at 55% in FY22 compared to 39% in the same period in FY21. These improvements were driven by a couple of key drivers: lower production cost of BVT's Clonostachys rosea CR-7 (CR-7) strain and increased sales of the honeybee system, which is a higher margin product than the bumblebee system.
"BVT continues to accelerate growth opportunities in new markets, leveraging knowledge gained in the US to bring BVT's portfolio of products to more growers around the world," continued Mr. Malik. BVT has already delivered on several key milestones around geographic expansion in FY22, including submission to Mexico regulatory authorities and a Memorandum of Understanding with a Turkish partner to launch BVT in the region. In addition, BVT currently has ongoing expansion projects that are active in the European Union, Canada, and Peru.
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