El Segundo / CA. (bmi) Beyond Meat Inc., a leader in plant-based meat, reported financial results for its second quarter ended July 01, 2023. Financial Highlights:
- Net revenues were USD 102.1 million, a decrease of 30.5 percent year-over-year.
- Gross profit was USD 2.3 million, or gross margin of 2.2 percent of net revenues, compared to a loss of USD 6.2 million, or gross margin of -4.2 percent of net revenues, in the year-ago period.
- Gross profit and gross margin were positively impacted by lower materials costs, lower inventory reserves and lower logistics costs per pound, partially offset by higher manufacturing costs excluding depreciation, which included the impact from flow-through of higher cost inventory produced in the fourth quarter of 2022, and lower net revenue per pound.
- Gross profit and gross margin included the impact from a change in the Company’s accounting estimate associated with the estimated useful lives of its large manufacturing equipment made in the first quarter of 2023, which reduced COGS depreciation expense by approximately USD 5.1 million, or 5.0 percentage points of gross margin, relative to depreciation expense utilizing the Company’s previous estimated useful lives.
- Net loss was USD 53.5 million, or USD 0.83 per common share, compared to net loss of USD 97.1 million, or USD 1.53 per common share, in the year-ago period.
- Adjusted Ebitda was a loss of USD 40.8 million, or -40.0 percent of net revenues, compared to an Adjusted Ebitda loss of USD 68.8 million, or -46.8 percent of net revenues, in the year-ago period.
President and CEO Ethan Brown: «The second quarter brought mixed results amidst otherwise strong progress toward our goal of sustainable long-term growth. Ongoing category headwinds compressed net revenues, which in turn impacted product sales mix and gross margin, overshadowing significant strides in operational efficiency, including meaningful year-over-year reductions in operating expenses, COGS per pound, and overall cash consumption. While we are reducing our full-year 2023 net revenues outlook, we nevertheless expect a modest return to year-over-year top-line growth in the third and fourth quarters of 2023, and, relative to the first half of 2023, a meaningful reduction in cash consumption and an increase in gross margin. As we look to the future, we remain steadfast in our belief that plant-based meat, and Beyond Meat specifically, will play an important part of the global response to a climate crisis that appears to be rapidly intensifying, while also delivering health benefits to the individual consumer.»
For additional information please read the Company’s PDF file below (89 KB):20230808-BEYOND-MEAT-Q2-2023