El Segundo / CA. (bmi) Beyond Meat Inc., a leader in plant-based meat, reported financial results for for its third quarter ended October 01, 2022.
Third Quarter 2022 Financial Highlights
- Net revenues were USD 82.5 million, a decrease of 22.5 percent year-over-year.
- Gross profit was a loss of USD 14.8 million, or gross margin of -18.0 percent of net revenues. Gross profit was negatively impacted by approximately USD 7.2 million, or -8.8 percentage points of gross margin, of underutilization fees and one-time termination costs associated with certain co-manufacturing agreements. Approximately USD 5.9 million in underutilization and one-time termination costs were associated with Beyond Meat Jerky which negatively impacted gross profit by USD 5.8 million, or -7.0 percentage points of gross margin, during the period.
- Net loss was USD 101.7 million, or USD 1.60 per common share. Net loss as a percentage of net revenues was -123.2 percent.
- Adjusted Ebitda was a loss of USD 73.8 million, or -89.5 percent of net revenues.
Beyond Meat President and CEO Ethan Brown commented, «As we shared last month, Beyond Meat is executing a full force pivot to a sustainable growth model, emphasizing the achievement of cash flow positive operations within the second half of 2023. This transition is designed to fortify our business in the near-term as record inflation continues to pose a challenge for our brand and category, positioning Beyond Meat to endure and advance toward our long-term objective of being a major protein provider within the USD 1.4 trillion meat industry.»
Brown continued, «Though this quarter’s results are disappointing, with a sharp decline in revenues and associated knock-on effects across the income statement including gross margin driven by a challenging macro environment, we are implementing aggressive measures with urgency to positively impact our near-term operations. Our path forward comprises 3 key actions: significant reduction of our operating expenses; intensified focus on cash flow accretive inventory management activities; and sales and marketing programs that are tightly focused on opportunities and segments that strike the right balance between near-term growth and our most valuable long-term opportunities. We are focusing on the key drivers of our business and are committed to sharing our progress toward delivering them over the coming quarters.»
Third Quarter 2022
Net revenues decreased 22.5 percent to USD 82.5 million in the third quarter of 2022, compared to USD 106.4 million in the year-ago period. The decrease in net revenues was driven by a 12.8 percent decrease in total pounds sold and an approximately 11.2 percent decrease in net revenue per pound. All markets and channels were negatively impacted by a combination of weaker than expected demand in the category and certain customer and distributor changes such as reductions in targeted inventory levels, among other factors. The decrease in net revenue per pound was primarily attributable to strategic but limited price reductions in the U.S. and broader list price reductions in the EU implemented in the first quarter of 2022, increased trade discounts and unfavorable changes in foreign exchange rates. U.S. retail channel net revenues decreased 11.8 percent compared to the year-ago period primarily driven by an 11.8 percent decrease in pounds sold with net revenue per pound staying flat. U.S. foodservice channel net revenues increased 5.6 percent compared to the year-ago period primarily driven by a 32.2 percent increase in pounds sold, partially offset by lower net revenue per pound. The decrease in net revenue per pound was primarily due to changes in sales mix and, to a lesser extent, higher trade discounts. International retail channel net revenues decreased 52.3 percent compared to the year-ago period primarily driven by a 37.0 percent decrease in pounds sold and a 24.4 percent decrease in net revenue per pound. The decrease in net revenue per pound was primarily due to list price reductions in the EU implemented in the first quarter of 2022, unfavorable foreign exchange rate impact, changes in sales mix and increased trade discounts. International foodservice channel net revenues decreased 42.2 percent compared to the year-ago period primarily due to a 25.5 percent decrease in net revenue per pound and a 22.4 percent decrease in pounds sold. The decrease in net revenue per pound was primarily due to changes in sales mix and unfavorable foreign exchange rate impact.
For additional information please read the Company’s PDF file below (95 KB):20221112-BEYOND-MEAT-Q3-2022