5 days ago
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- The Market Online
Plant-based protein stock ramps up path to profitability
Burcon NutraScience (TSX:BU), a plant-based protein stock, signed a C$6.8 million multi-year production agreement with a top provider of clean label, plant-based ingredients
Burcon's record for annual revenue over the past five years stands at C$360,000
Burcon NutraScience stock has added 76.8 per cent year-to-date but remains down by 27.2 per cent year-over-year
Burcon NutraScience (TSX:BU), a plant-based protein stock, signed a C$6.8 million multi-year production agreement with a top provider of clean label, plant-based ingredients.
Burcon expects production during the first year, which began in Q2 2025, to generate a minimum of C$1.4 million in revenue, with this figure set to rise as production ramps up through the end of the year.
The agreement represents a significant increase in revenue for Burcon, following the beginning of commercial production announced earlier this month, with the company achieving a 5-year annual high of C$360,000 for all of 2023.
According to Tuesday's news release, management estimates that operations will generate C$1 million to C$3 million in revenue in calendar 2025, surpassing C$10 million in 2026 while reaching positive cash flow, thanks to the benefits of scale and a robust supply agreement pipeline. Leadership insights
'We're pleased to secure a significant revenue stream using the production capabilities of the Galesburg facility,' Kip Underwood, Burcon's chief executive officer, said in a statement. 'This agreement represents a major step in Burcon's road to profitability and supports our revenue target for calendar 2025. We look forward to building a long and successful relationship with this customer.' About Burcon NutraScience
Burcon is a global technology company specializing in plant-based proteins for the food and beverage industry. The company's patent portfolio includes proteins derived from pea, canola, soy, hemp and sunflower, among other plant sources.
The plant-based protein stock (TSX:BU) is up by 8.02 per cent trading at C$2.83 as of 10:18 am ET. The stock has added 76.8 per cent year-to-date but remains down by 27.2 per cent year-over-year.
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