In a year that experienced significant geo-political instability and challenging macro-economic conditions that led to major declines in financial markets (NASDAQ down 30%, TSX Venture down over 38%, and CSE Composite down ~50%), BVT was able to hit important corporate milestones to demonstrate scalability and potential for growth. While macro factors such as rising inflation and interest rates are beyond our control, we remain laser-focused on growing our business and made significant advances in all three of our strategic growth pillars during 2022. We are confident that this continued commitment will result into significant shareholder value.
1. US commercialization progress stays strong
Q3 FY22 reported revenue increased by 20% and the business saw overall growth in 2022. This is despite difficult conditions in Georgia, BVT’s largest market, where hard freezes and doubling of fertilizer and fuel costs meant growers lost crops and did not invest in crop protection. More specifically, according to the US Highbush Blueberry Council, there was a 42% reduction in berries produced in Georgia, mostly due to the hard freeze that occurred in late January. Despite these challenges, BVT maintained consistent sales levels for the Southeast.
This year, we tripled BVT’s acreage coverage in the Pacific Northwest and secured our first revenue stream in California – two significant market opportunities. This was achieved amidst a challenging year with macro inflationary and supply chain issues doubling the cost for growers. Being able to successfully penetrate multiple US markets will not only ensure continued growth, but it also means the diversification in revenues (and results) that we need to make us less susceptible to external challenges in a single region in any given season, like weather in Georgia this year.
Why are more growers increasingly adopting our natural precision agriculture system? BVT has proven year over year that with our proprietary system, growers have seen their ROI expand up to 20 times using the BVT system – by getting up to 30% greater yield and combating disease in an efficient and cost-effective manner. Additionally, the BVT system cuts chemical use by 98%, and by avoiding fossil fuels and using less water, we help reduce damage to the environment while increasing sustainability.
2. Global expansion
BVT is focused on scaling our success in the US by expanding into key global markets. This year, we completed regulatory submissions in Mexico and Canada, launched the development process for Peru, carried out grower demonstrations in Mexico, and kickstarted a partnership MOU to enter Turkey. The global expansion plans are part of our diversification and growth strategy.
3. A bigger product portfolio
BVT entered into a partnership with Agri Spray Drones for targeted applications on mega crops, submitted an MOU with BioSafe Systems for a multi-faceted business collaboration, and engaged in discussions with other potential partners. This is a strong indicator that our unique IP is being recognized and we are becoming appealing to a diverse pool of leading industry partners. | |