Burcon NutraScience (BU) Q1 2025 earnings summary

Executive summary

• Achieved first-ever commercial revenue from hemp protein sales and launched canola protein, marking a major milestone in transitioning from R&D to revenue generation and expanding the product portfolio.

• Accelerated canola protein production timeline by six months due to strong customer demand.

• Over 50 prospective customers are in various stages of product evaluation and trials, focusing on innovative, fast-moving consumer brands.

• Commercial production capabilities for both hemp and canola proteins have been established, with additional production campaigns underway to meet growing demand.

• Appointed Robert Peets as CFO, bringing significant financial and capital markets expertise.

Financial highlights

• Recorded revenues of CAD 237,000 (USD 236,617) for the quarter ended June 30, 2024, compared to nil in the same quarter last year.

• Net loss was just under CAD 1.9 million (1 cent per share), slightly improved from just over CAD 1.9 million (2 cents per share) in the prior year.

• Research and development expenditures decreased by CAD 253,000 year-over-year, aided by government assistance and reduced IP expenses.

• General and administrative expenses increased by CAD 267,000, driven by higher stock-based compensation and investor relations costs.

• Cash balance at June 30, 2024 was CAD 2.2 million, with access to up to CAD 4 million in undrawn secured loan capacity.

Outlook and guidance

• Profitability is targeted for mid to late calendar 2025 (fiscal 2026), with the timeline unchanged despite the accelerated canola launch.

• Expectation to drive recurring sales of hemp and canola proteins in late 2024 and into 2025, leveraging a robust customer funnel.

• Ongoing focus on capital-light strategy, scaling production, and converting initial sales into recurring revenue streams.

• Plans to fulfill initial customer orders for canola protein in the coming months following successful commercial-scale validation.

• Exploring opportunities to expand product line beyond hemp and canola to capture a share of the growing plant-based protein market.