Burcon NutraScience (BU) Q4 2024 earnings summary

Executive summary

• Fiscal 2024 marked a transformative year with a strategic shift to a capital-light business model, key milestones in commercial readiness, and validation of a $40 billion addressable market for high-purity plant proteins.

• Achieved commercial-scale production runs, launched the world's first 95% hemp protein isolate, and expanded the product portfolio with high-purity canola protein and contract research services.

• First direct commercial sale of hemp protein achieved within nine months of launch, with strong customer demand and recurring revenue anticipated.

• Leadership transition: Robert Peets appointed as CFO effective July 1, 2024, succeeding Jade Cheng.

Financial highlights

• Fiscal 2024 royalty revenue was CAD 184,000, down from CAD 364,000 in 2023, mainly due to lower sales from Merit Functional Foods.

• Net loss for fiscal 2024 was CAD 7.5 million (CAD 0.06 per share), a significant improvement from CAD 25.4 million (CAD 0.23 per share) in 2023.

• Operating expenses decreased by CAD 686,000, with R&D and G&A expenses both reduced year-over-year.

• Cash balance at March 31, 2024, was CAD 4.2 million, bolstered by CAD 7.7 million in equity financings and $1 million loan drawdown.

Outlook and guidance

• Recurring revenue from hemp and canola protein sales expected in the last two quarters of calendar 2024.

• Profitability targeted for early 2026, contingent on sales ramp-up.

• Anticipates ramping up hemp protein production, launching canola protein commercial production, and expanding contract research services.

• Fully funded business plan supported by equity, non-dilutive debt, and government assistance.