- Biorem (TSXV:BRM), a green stock focused on environmental biotechnologies, ended Q2 2024 in the black, as it has since 2020, marked by strong demand and a record backlog
- Management has proven itself capable of delivering consistent profitability over the past four-and-a-half years
- Biorem is an environmental biotechnology company offering a line of high-efficiency air emission control systems to eliminate odors, volatile organic compounds and hazardous air pollutants
- Biorem stock is up by 148.89 per cent year-over-year and by 522.22 per cent since 2019
Biorem (TSXV:BRM), a green stock focused on environmental biotechnologies, ended Q2 2024 in the black, as it has since 2020, marked by strong demand and a record backlog.
Revenue for the quarter came in at C$7.3 million, up by 23 per cent quarter-over-quarter and by 70 per cent from C$4.3 million year-over-year. Revenue year-to-date stands at C$13.2 million, up by 77 per cent from C$7.4 million year-over-year, thanks to an increase in orders received.
EBITDA was C$555,000, up from C$0 year-over-year, with net earnings of C$340,000 for the quarter and C$681,000 year to date, up from a net loss of C$650,000 for the first half of 2023.
New orders booked reached C$13 million, bumping Biorem’s backlog to a record C$57 million as of June 30, 2024, up from C$51.5 million year-over-year.
Gross profit was C$1.7 million or 22.7 per cent of revenue, up from C$954,000 or 22.2 per cent of revenue year-over-year.
Total operating expenses were C$1,145,000, up from C$1,018,000 year-over-year, driven by higher commission expenses on higher reported revenues.
Earnings from operating activities were C$629,000, with working capital of C$7.6 million at quarter end.
Cash as of June 30, 2024, decreased to C$3.9 million because of a net increase in non-cash working capital items of C$2.5 million.
The company expects strong revenue and earnings through the rest of the year and boasts a performance history that justifies investor conviction.
Biorem’s profitability has translated into shareholder value
Over the past four-and-a-half years, Biorem’s management team has proven itself capable of delivering consistent profitability, generating C$2.09 million in net income in 2020, C$1.3 million in 2021, C$1.61 million in 2022, C$2.18 million in 2023 and C$344,000 in Q1 2024.
The environmental biotechnology provider has an approximately two-year runway for its profitable operations to continue, judging by the record backlog and the C$24.7 million it has averaged in revenue per year since 2019, which could represent significant returns should the market react to the company’s profitability as it has in the past.
Biorem investors have been rewarded with a 148.89 per cent return year-over-year and a 522.22 per cent return since 2019.
Leadership insights
“Our strategic initiatives gathered momentum in 2024,” Derek S. Webb, Biorem’s president and chief executive officer, said in a statement. “This is reflected in the product mix purchased by our clients as well as new orders that have driven our order backlog to a record C$57 million.”
“There continues to be strong underlying demand for our full range of products and services,” Webb continued. “Physical and chemical technologies are supplementing the core advanced biological solutions that customers have come to trust and rely upon. A large multi-stage project we recently confirmed in the Middle East offers a good example of this. The project will involve a combination of chemical and biological technologies to deal with emissions from a biosolids drying operation. Management is excited at working together with a repeat customer to deliver another successful project.”
About Biorem
Biorem is an environmental biotechnology company offering a line of high-efficiency air emission control systems to eliminate odors, volatile organic compounds and hazardous air pollutants.
Biorem stock (TSXV:BRM) is up by 1.82 per cent trading at C$2.24 per share as of 11:10 am ET.
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(Top photo of Biorem’s cannabis odor control system: Biorem)
