El Segundo / CA. (bmi) Beyond Meat Inc., a leader in plant-based meat, reported financial results for its third quarter ended September 30, 2023. Financial Highlights:
- Net revenues were USD 75.3 million, a decrease of 8.7 percent year-over-year.
- Gross profit was a loss of USD 7.3 million, or gross margin of -9.6 percent, compared to a loss of USD 14.8 million, or gross margin of -18.0 percent, in the year-ago period.
- Gross profit and gross margin were positively impacted by lower manufacturing costs, excluding depreciation, lower materials costs, lower depreciation and lower inventory reserves per pound, partially offset by lower net revenues 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 4.4 million, or 5.9 percentage points of gross margin, relative to depreciation expense utilizing the Company’s previous estimated useful lives.
- Net loss was USD 70.5 million, or USD 1.09 per common share, compared to net loss of USD 101.7 million, or USD 1.60 per common share, in the year-ago period.
- Adjusted Ebitda was a loss of USD 57.5 million, or -76.3 percent of net revenues, compared to an Adjusted Ebitda loss of USD 73.8 million, or -89.5 percent of net revenues, in the year-ago period.
President and CEO Ethan Brown: «Though we are encouraged by pockets of growth, particularly in the EU where we saw double digit gains in net revenues on a year-over-year basis, we are disappointed by our overall results as we continue to experience worsening sector-specific and broader consumer headwinds. As we shared last week, we are conducting a review of our global operations for purposes of further and significantly reducing our operating expense base as we seek to accelerate our transition to a sustainable and, ultimately, profitable business. And while we expect current headwinds to persist in the coming quarters, we have confidence in the long-term trajectory of our business, its central relevance to the intensifying health, climate and natural resource challenges facing our global community, and our ability to emerge as a stronger, leaner organization as a result of the decisive measures we are undertaking to fit the current macroeconomic reality and business environment.»
For additional information please read the Company’s PDF file below (92 KB):20231111-BEYOND-MEAT-Q3-2023