With the business potentially at an important milestone, we thought we'd take a closer look at Burcon NutraScience Corporation's (TSE:BU) future prospects. Burcon NutraScience Corporation, together with its subsidiaries, develops plant proteins and ingredients for use in the food and beverage industries in Canada. The company's loss has recently broadened since it announced a CA$7.4m loss in the full financial year, compared to the latest trailing-twelve-month loss of CA$8.1m, moving it further away from breakeven. As path to profitability is the topic on Burcon NutraScience's investors mind, we've decided to gauge market sentiment. We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.
Check out our latest analysis for Burcon NutraScience
Expectations from some of the Canadian Chemicals analysts is that Burcon NutraScience is on the verge of breakeven. They expect the company to post a final loss in 2025, before turning a profit of CA$3.0m in 2026. The company is therefore projected to breakeven just over a year from today. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 156% is expected, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
Underlying developments driving Burcon NutraScience's growth isn't the focus of this broad overview, but, take into account that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
One thing we would like to bring into light with Burcon NutraScience is it currently has negative equity on its balance sheet. Accounting methods used to deal with losses accumulated over time can cause this to occur. This is because liabilities are carried forward into the future until it cancels. These losses tend to occur only on paper, however, in other cases it can be forewarning.
There are too many aspects of Burcon NutraScience to cover in one brief article, but the key fundamentals for the company can all be found in one place - Burcon NutraScience's company page on Simply Wall St. We've also put together a list of key factors you should look at: