2023 has been a remarkably positive year for Beemine, and I am excited to share some of the achievements we have accomplished in this exciting year.
As CEO of this pioneering startup in the health sector, specializing in the creation of natural products that fuse active ingredients such as CBD and honey, we know that we are challenging the norms and reshaping the social perception around cannabis and its derivatives. We are proud to take on the responsibility of being leaders in transparency, security and accessibility for both the pharmaceutical industry and our valued customers.
From a business perspective, we have achieved 80% of our targets, experienced a 35% increase in our net income compared to the previous year and achieved an improvement of almost 5 percentage points in our EBITDA, marking a milestone as the first year with a positive interim EBIDTA. Although we have not achieved the expected results in full, this experience encourages us to reflect on our ambitions and to draw valuable lessons from our setbacks in order to refine our strategy for the future.
Innovation and product design.
I would like to highlight the extraordinary work of our design team, led by @Andres Espinosa, which has culminated in a remarkable achievement: we have more than 30 exclusive formulas ready to conquer the international market.
In the leading role of this feat, our sub-brand AliviumCBD© has led the commercial share, setting the pace with the launch of the AliviumCBD© Forte version in 75ml and 250ml presentations.
We have also collaborated on special launches with major brands such as Intimina and PutosModernos, launching exclusive products such as Belly Balm and BAD DAYS GOOD NIGTHS.
Throughout this year, we have manufactured more than 100,000 units of products designed to improve the well-being of our customers. These innovative formulas have been distributed in more than 3,150 pharmacies and parapharmacies, mainly in Spain, but we have also expanded our presence in Portugal, Belgium and France. This is just the beginning of our foray into the international market, and we are excited to continue bringing our innovative solutions to new markets.
The international leap
2023 has been the year with the greatest international growth for Beemine with a growth of 165% YoY, representing 15% of turnover in 5 countries.
Our product line combining CBD and honey is physically available in pharmacies in France and Belgium thanks to our strategic collaboration with Alliance Healthcare. In addition, we have established a network of 250 pharmacies in Portugal thanks to our strong partnership with Quilaban Analítica SA.
We have not limited the accessibility of our products to the European Union alone. We have also extended our reach to countries outside this region, such as specialized aesthetic clinics in Ecuador. In addition, our products are featured in major Japanese shopping malls, including the renowned Isetan department store in Tokyo. This global approach allows us to bring our cutting-edge products to various parts of the world, marking a milestone in our international expansion.
We closed the year with a vibrant activity, actively participating in various international fairs, which have led us to the culmination of 2023, we have sealed an important agreement with a leading international pharmaceutical company. The details of this strategic collaboration will be revealed during the first quarter of 2024, promising to be a significant milestone in our journey towards global success.
Increase in the quota in the pharmacy channel and investment in technology.
As CEO of a Pharmaceutical Laboratory, it is an honor to highlight how we have consolidated our position as leaders in CBD products within the pharmaceutical industry. The prominence of AliviumCBD as the cream with the highest CBD content on the market, together with our participation in key pharmaceutical fairs such as Infarma BCN and FisioExpo, has led to a notable increase in the number of points of sale of Beemine products.
From an analytical perspective, we have experienced an impressive 90% growth in our net revenue through this channel, thanks in large part to the collaboration with national distributors, renowned wholesalers such as Alliance Healthcare and Cofares, and especially to our strong network of own pharmacies.
On the technological front, this year has been particularly intriguing, marked by the implementation of a new CRM to boost the efficiency of our sales team. In addition, we have launched several projects aimed at improving our distribution service, most notably the introduction of the “Pick up at your Pharmacy” customer service. This innovative technology allows our customers to place orders and pick them up at their nearest pharmacy within approximately 72 hours, with the ambitious goal of reducing this time to 24/14 hours. We are committed to implementing advanced technologies that not only optimize our internal processes, but also elevate the customer experience to exceptional levels.
Finally, we have developed CLUB Beemine, an application for pharmacy loyalty, based on rewarding pharmacists for increasing sales receipts. Even so, we still have a long way to go and a lot of competition to compete with to ensure the well-being of our customers and better understand the needs of our pharmacists.
The Team
Our team has evolved significantly over the past 4 years of the project, facing countless changes with perseverance. One of the most significant milestones was the drastic reduction of the marketing team earlier this year and the farewell of one of our original employees (OG), with whom we shared a special relationship.
It is also important to highlight that this year marked a turning point with our first hires outside our base in Madrid, incorporating talent in the Basque Country, Catalonia and Paris.
Today, we have a stronger, more united and solid team that has been able to capitalize on and grow the project. I would like to express my gratitude to all of them for their commitment and continued support.
2024, the year of scale up.
The year 2023 has been a challenging period, perhaps somewhat scattered, but it has marked the culmination of our " Go to Market " phase. We have consolidated our focus, clearly outlined our goals and learned valuable lessons from mistakes that we will not repeat.
We are entering 2024 with solid forecasts, focusing on improving our position and strengthening our business strength. We maintain an ambitious target of sales growth without sacrificing profitability.
Our focus is on gaining market share in new countries, boosting our pharmacy network nationwide, and learning to reject projects and opportunities that are not aligned with our product and service lines. For us, 2024 represents “less is more”: less activity, more productivity; fewer products, more sales; fewer countries, more market share per country.
As a very significant achievement, we have obtained the Bcorp company certification, an effort that has taken more than two years of work.
We would like to express our gratitude to all of our partners, employees, friends, and investors for their continued support. With a positive mindset, we embark on another year, committed to excelling at every step we take. Thank you all for being a part of our journey!
Sincerely,
T.
