● Revenue increased by 17.3% to $29.9 million.
● Delivered full fiscal year 2022 net income of $6.2 million, or $0.74 per diluted share.
Xian, China, Feb. 10, 2023 (GLOBE NEWSWIRE) -- Bon Natural Life Limited (Nasdaq: BON) ("BON" or the "Company"), one of the leading bio-ingredient solutions providers in the natural, health and personal care industries, today announced its 2022 annual financial results for the fiscal year ended September 30, 2022.
FY 2022 Financial Highlights
■Total net revenues were US$29.9 million, representing a 17.3% increase from US$25.5 million for the same period in 2021.
■Gross profit increased by 32.5% to US$9.4 million from US$7.1 million for the same period in 2021.
■Gross margin was 31.5%, an increase by 3.6% from 27.9% for the same period in 2021.
■Revenues and gross profit of our bioactive food ingredient products increased by 48.5% and 61.4% compared to the same period of 2021.
■Net income increased by 35.4% to US$6.2 million in FY2022 from US$4.6 million for the same period in 2021.
■Diluted earnings per share (“EPS”) was $0.74, compared to $0.68 for the same period in 2021.
Management Commentary
“We are pleased to conclude fiscal 2022 with solid growth in both top and bottom lines compared to the fiscal year 2021 despite challenges caused by the volatile global environment including high inflation, supply chain disruption, and the persistent outbreak of COVID-19 pandemic in the last year.” Commented Richard (Yongwei) Hu, BON’s Chairman & CEO, “I would like to recognize our team for their contribution in navigating through these conditions by market strategy adjustment, disciplined cost management as well as pricing efforts. Thanks to their relentless effort and hard work, the gross profits of fragrance compounds, health supplemental powder drinks and bioactive food ingredients increased by 27.3%, 10.4% and 61.4% from the prior year. Our net income grew 35.4% to $6.2 million.”
“Looking ahead to 2023, we expect the first-phase completion of our third production site - Yumen Plant in May 2023. Once up and running, Yumen Plant will add 150% revenue growth potential on an annualized basis. In addition, the successful launch of our new vegetable based probiotic powder drink for regulation and improvement of human's overall microbiome and digestive health, as well as natural based personal care products for female hygiene health will attract more natural health-conscious consumers and further drive revenue growth for BON. Last but not the least, the reopening of China will help boost our profit by alleviating pressures from the supply chain and logistics. With our new Yumen plant, our new natural based products, along with post-COVID reopening, we are confident to deliver sustainable growth and create lasting long-term value for our shareholders.”
FY 2022 Product Categories Summary: Growth vs. Prior Year
Fragrance Compounds
■Revenue from sales of fragrance compound products increased by 7.6% to US$13.7 million from US$12.7 million for the same period in 2021. The increase was primarily attributable to 9.1% and 27.5% increases in the average purchase orders by customers and average selling price, partially offset by a decrease of 15.1% in sales volume due to the shortage of material supply.
■Gross profit from fragrance compound increased by 27.3% from US$3.0 million to US$3.8 million for the same period in 2021. The increase was primarily attributable to the above referenced factors.
Health Supplements (Powder Drinks)
■Revenue from sales of health supplement (powder drinks) products increased by 7.4% to US$7.1 million from US$6.7 million for the same period in 2021. The increase was attributable to 7.0% and 1.0% increases in average selling price and sales volume.
■Gross profit from health supplements (powder drinks) increased by 10.4% from US$2.1 million to US$2.3 million for the same period in 2021. The increase was primarily due to the above referenced factors.
Bioactive Food Ingredients
■Revenue from sales of bioactive food ingredient products increased by 48.5% to US$9.1 million from US$6.1 million for the same period in 2021. The increase was mainly attributable to 27.3% increase in sales volume due to strong customer demand and sales effort. The increase was also due to 17.4% increase in the average selling price.
■The gross profit of our bioactive food ingredient products increased by 61.4% to $3.4 million from $2.1 million for the same period in 2021. This increase was primarily due to the above referenced reasons.
Selling expenses increased by $80,292, or approximately 58.0%, from $138,530 to $218,822 in the same period of 2021, mainly attributable to the increase in advertising expenses, salaries and social benefits on attending more trade shows as well as recruiting more sales staff.
Research and development (“R&D”) expenses increased by $175,508, or approximately 70.5%, from $249,050 in the fiscal year 2021 to $424,558 in the fiscal year 2022. The increase was mainly due to an increase of $140,504 in outsourcing R&D activities to external consulting firms.
Government subsidies received in the form of a grant and recognized as other operating income totaled $1,306,627 and $449,972 for the fiscal years ended September 30, 2022, and 2021, respectively.
Net income increased from $4.6 million in the fiscal year that ended September 30, 2021, to $6.2 million in the same period of 2022.
Net cash used in operating activities during the year ended September 30, 2022, was $0.2 million compared to $4.1 million net cash provided by operating activities in the same period of 2021. The decrease was mainly attributed to a decrease of $3,632,922 in taxes payable primarily due to income and VAT tax paid in the fiscal year 2022, an increase of $1,300,942 in accounts receivable due to increased sales in the year ended September 30, 2022, and decrease in deferred revenue of $875,295 due to changes in customer payment pattern related with COVID-19.
Basic earnings per share (“EPS”) was $0.75, compared to $0.69 for the same period in 2021.
Diluted earnings per share (“EPS”) was $0.74, compared to $0.68 for the same period in 2021.
Subsequent Events
■On September 30, 2022, the Company announced there will be a delay to the completion of the construction work for its third production site – Yumen Plant to May 2023.
■On January 17, 2023, the Company closed a private offering with gross proceeds of $2,200,000, mainly to fund its new Yumen Plant and working capital for the new production facility.
About Bon Natural Life Limited
The Company focuses on the manufacturing of personal care ingredients, such as plant-extracted fragrance compounds for perfume and fragrance manufacturers, natural health supplements such as powder drinks and bioactive food ingredient products mostly used as food additives and nutritional supplements by their customers.