Burcon NutraScience (TSE:BU) reported fiscal 2027 first-quarter revenue of CAD 1.3 million, up 54% sequentially and more than threefold from the prior-year quarter, as the plant-protein ingredient company continued to scale production at its Galesburg, Illinois facility.
Interim Chief Financial Officer Alex Varty said the company has delivered sequential revenue growth in every quarter since launching operations at the facility. Burcon also reduced its operating loss by 7% from the preceding quarter, which Varty attributed to revenue growth and a focus on directing resources toward production and revenue generation.
Protein demand drives commercial focus
Chief Executive Officer Kip Underwood said Burcon sees an expanding opportunity as consumers seek higher-protein, lower-calorie foods without sacrificing taste or eating experience. He pointed to demand from consumers using GLP-1 weight-management medications as an additional factor supporting protein consumption.
Underwood said food companies need highly pure proteins that can be incorporated into products while preserving taste. Burcon markets sunflower, pea, fava and canola protein products under the Sunflower, Peazazz, FavaPro and Puratein brands, respectively.
The CEO said Burcon’s products are being used across beverages, at-home powder mixes and plant-based foods. He added that the company sees potential in snacks and other food categories that have not traditionally contained significant protein levels.
“It’s very difficult to put protein into a snack at a level that’s meaningful, and then also that snack still tastes great,” Underwood said, describing those applications as areas where the company’s protein purity may help food manufacturers develop products that were previously difficult to formulate.
Customer base and production expand
Burcon said it has 40 active buying customers and sales spanning its portfolio of protein ingredients. Underwood characterized the customer base as diverse by food application and customer type, including smaller and mid-sized brands as well as a limited number of larger “anchor” customers that can provide foundational volume for the facility.
Management emphasized repeat purchases as a key measure of product acceptance and production consistency. Underwood said customers progressing from product evaluation to purchases and repeat orders provide validation that the company can consistently manufacture ingredients at commercial scale.
The company has also continued to pursue production improvements, reporting record output levels on daily and weekly measures. Underwood said Burcon is investing in people, equipment and efficiency to prepare for demand visible in its sales pipeline.
Burcon’s original strategy was to establish its technology at Galesburg, demonstrate commercial relevance, margins and pricing, and later scale through licensing, Underwood said. However, management now believes it has a capital-efficient way to expand capacity at the existing site while retaining the possibility of licensing in the future.
The company is also working with manufacturing partner ProMan on potential subsequent investments intended to increase the capacity and capabilities of the Galesburg facility.
Financing and outlook
Underwood said the proposed financing is expected to close shortly after Burcon’s annual shareholder meeting on Sept. 16, with an anticipated closing in late September or early October. The planned convertible debentures will have a 48-month term, he said. Burcon also has CAD 3 million remaining undrawn under the second tranche of its senior secured loan.
In response to an analyst question, Underwood said Burcon expects to reach “double-digit revenue” by the end of calendar 2026 and expects to become cash-flow positive around the end of that year. He said achieving those targets will depend on converting customers in the company’s sales funnel, continuing to execute operationally and having capacity-expansion measures in place during the latter part of the year.
Management expects revenue growth to be weighted toward the second half of calendar 2026 as customers increase order frequency and volumes over time and as new customers adopt Burcon’s ingredients. Underwood said the company remains focused on North America, where he believes there is substantial opportunity, while noting that Burcon is not presently focused on assessing international GLP-1-related demand.
About Burcon NutraScience (TSE:BU)
Burcon is a global technology leader in plant-based proteins for food and beverage applications. The Company has developed a portfolio of high-performance protein ingredients, including Peazzaz® pea proteins, FavaPro TM fava proteins and Puratein® canola proteins, and is focused on commercializing its technologies through manufacturing partnerships and growing customer adoption worldwide.
