Bee Vectoring Technologies International Inc. released an update letter to shareholders from Chief Executive Officer Ashish Malik on 31 Janaury 2022 announcing financial results for the fourth quarter and fiscal year which ended September 30, 2021.
There is now proven market demand for BVT’s natural precision agriculture system, which includes our bee delivery systems and biological control agent, CR-7. We have a growing base of customers in multiple regions of the US, and momentum in Europe and South America from partners who are interested in licensing BVT’s technology for use in these markets.
Some of 2021’s accomplishments include:
47% growth in revenue in the US on a constant currency basis. 100% retention of customers in the key blueberry market of Georgia. First revenues in Michigan, New Jersey and the Pacific Northwest.
First commercial activity in California. New territory manager in place and first successful trials (almonds, berries) underway following regulatory approval.
CBC Biogard granted BVT use of its proven biological insecticide through BVT’s bee vectoring system. This is our first path to revenue in the EU and validates the business as a platform, not a single-product system.
Memorandum of Understanding with BioSafe to explore pairing BioSafe biologicals with BVT’s bee delivery systems and using CR-7 for applications outside of bee-vectoring.
Regulatory approval progress in multiple global markets including the European Union, Mexico, Canada, and Peru, which will be the beachhead for our South American expansion.
Successful trials of CR-7 for seed treatment of soybeans, a 300-million-acre worldwide crop.
BVT is now a successful commercial operation in its 10th year, with a $20M investment.
Revenue of $400,000 which represents a year-on-year growth of +47% using constant currency (US$/CAD$) exchange rates for FY2021 and FY2020. As reported, revenue growth is +38% since the CAD strengthened in 2021 as compared to 2020.
Gross margins improved from 39% in FY2020 to 42% in FY2021. This improvement was driven by lower cost of production of BVT’s Clonostachys rosea strain BVT CR-7 and the introduction of the higher margin honeybee solution.
Cash on hand of $2.7 million.
The Company continues to focus on operational efficiency and cash management as evident by a reduction of cash used by operations from $3.67 million in FY2020 to $2.85 million in FY2021.
Growth Acceleration Plan
Our strategy for geographic and portfolio expansion includes:
Accelerating sales in the US with an expanded sales team and strategic marketing to raise awareness and generate leads.
Replicating market penetration success and know-how built from the US in new geographies.
Expanding sales of our patented bee vectoring systems to address new crop pest, disease and yield challenges by including existing and approved products from third parties into our portfolio.