Bee Vectoring Technologies Doubles Sales in New, Key US Markets, Increases Gross Margin by 16%, and Delivers Market Expansion Milestones in Q3
Mississauga, Ontario and Sacramento, California–(Newsfile Corp. – August 30, 2022) – Bee Vectoring Technologies International Inc. (CSE: BEE) (OTCQB: BEVVF) (CVE: BEE) (the “Company” or “BVT”) is pleased to announce 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.”
Q3 and YTD FY22 Highlights
- Revenue increased by 118% to approximately $120,000 USD during the three months ending June 30, 2022, compared to $55,000 USD for the same period in 2021
- Revenue increased by 20% to $378,000 USD during the nine months ending June 30, 2022 compared to $314,000 USD for the same period in 2021
- Gross margins for 9 months ending Jun 30 expanded by 16% from 39% in FY21 to 55% in FY22
- Subsequent to Q3 the Company secured institutional financing to support its growth and commercialization strategy
- Doubled sales in US markets outside the Georgia blueberry market
- Tripled sales in the Pacific Northwest
- Announced first California sales commitment, with revenue to be reflected in Q4 FY22
- Successfully completed year 1 of 2 year trials with Rutgers University in New Jersey
- Built strong relationship with Michigan Blueberry Growers – a leading grower cooperative and partner in Naturipe, the world’s leading fresh blueberry marketer
- Completed submission and filed for approval with Mexican regulatory authorities
- Signed Memorandum of Understanding with development and commercial partner for Turkey
- Filed for import permit and official trial approval with authorities in Peru
- Implemented second year of trials for soybean seed treatment following successful results from 2021
- Foliar/soil-applied project underway
“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.
The Company is also focused on new applications for CR-7, a promising avenue that will lead to significant market opportunities for BVT. Recent progress in these areas includes using CR-7 as a seed treatment: the second year of trials is now underway, with results coming at year-end. Development has also begun on a foliar/soil project.
About Bee Vectoring Technologies International Inc.
BVT, an agriculture technology company, is a market disruptor with a significant global market opportunity in the $240 billion crop protection and fertilizer market. BVT has pioneered a natural precision agriculture system that replaces chemical pesticides and wasteful plant protection product spray applications by delivering biological pesticide alternatives to crops using commercially grown bees. BVT’s award-winning technology, precision vectoring, is completely harmless to bees and allows minute amounts of naturally-derived pesticides (called biologicals) to be delivered directly to blooms, providing improved crop protection and yield results than traditional chemical pesticides – and improving the health of the soil, the microbiome and the environment. Currently, BVT has over 65 granted patents, over 35 patents pending in all major agricultural countries worldwide and has US EPA registration of its Vectorite™ with CR-7 (EPA Registration No. 90641-2) for sale as a registered biological fungicide for use on the labeled crops.
Ashish Malik, President & CEO
Babak Pedram (Canada & International)
Virtus Advisory Group
William Maze (United States)
RB Milestone Group LLC (RBMG)
The CSE has neither approved nor disapproved the contents of this press release. The CSE does not accept responsibility for the adequacy or accuracy of this release. Certain statements contained in this press release constitute “forward-looking information” as such term is defined in applicable Canadian securities legislation. The words “may”, “would”, “could”, “should”, “potential”, “will”, “seek”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” and similar expressions as they relate to the Company, “annual revenue potential”, are intended to identify forward-looking information. All statements other than statements of historical fact may be forward-looking information. Such statements reflect the Company’s current views and intentions with respect to future events, and current information available to the Company, and are subject to certain risks, uncertainties and assumptions, including: planted acres, selling price of competitive chemical pesticides and the US to Canadian dollar exchange rate. Material factors or assumptions were applied in providing forward-looking information. Many factors could cause the actual results, performance or achievements that may be expressed or implied by such forward-looking information to vary from those described herein should one or more of these risks or uncertainties materialize. These factors include changes in law, competition, litigation, the ability to implement business strategies and pursue business opportunities, state of the capital markets, the availability of funds and resources to pursue operations, new technologies, the ability to protect intellectual property rights, the ability to obtain patent protection for products, third-party intellectual property infringement claims, regulatory changes affecting products, failing research and development activities, the ability to reach and sustain profitability, dependence on business and technical experts, the ability to effectively manage business operations and growth, issuance of debt, dilution of existing securities, volatility of publicly traded securities, potential conflicts of interest, unlikelihood of dividend payments, the potential costs stemming from defending third-party intellectual property infringement claims, the ability to secure relationships with manufacturers and purchasers, as well as general economic, market and business conditions, as well as those risk factors discussed or referred to in the Company’s Filing Statement dated August 14,2020, filed with the CSE and securities regulatory authorities in certain provinces of Canada and available at www.sedar.com. Should any factor affect the Company in an unexpected manner, or should assumptions underlying the forward-looking information prove incorrect, the actual results or events may differ materially from the results or events predicted. Any such forward-looking information is expressly qualified in its entirety by this cautionary statement. Moreover, the Company does not assume responsibility for the accuracy or completeness of such forward-looking information. The forward-looking information included in this press release is made as of the date of this press release and the Company undertakes no obligation to publicly update or revise any forward-looking information, other than as required by applicable law. All figures are in Canadian dollars.