In a press release dated November 8th Beyond Meat Inc. (BYND) announced results for the 3rd Quarter ending September 30th 2023.
The following table summarizes the results for the period compared with the values for the corresponding quarter of the previous fiscal year (Values expressed as US$ x 1,000 except EPS)
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3rd Quarter Ending:
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September 30th 2023
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October 1st 2022
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Difference (%)
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Sales:
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$75,312
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$82,500
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-8.7
|
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Gross profit /(loss):
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$(7,254)
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$(14,840)
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+51.1*
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Operating income/ (loss):
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$(69,620)
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$(89,741)
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+22.4*
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Pre-tax Income/ (loss)
Net Income/ (loss)
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$(70,366)
$(70,492)
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$(92,932)
$(101,678)
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+24.3*
+30.6*
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Diluted earnings per share:
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$(1.09)
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$(1.60)
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+31.8*
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Gross Margin (%)
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-9.6
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-18.0
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+46.7*
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Operating Margin (%)
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-92.4
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-108.8
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+243*
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Profit Margin (%)
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-93.6
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-123.2
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+24.3*
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Long-term Debt: September 30th ‘23 / Dec. 31st ‘22
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$1,213,256
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$1,189,931
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+2.0
|
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12 Months Trailing:
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|
|
|
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Return on Assets (%)
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-14.8
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|
|
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Return on Equity (%)
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N/A
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|
|
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Operating Margin (%)
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-92.5
|
|
|
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Profit Margin (%)
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-71.5
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|
|
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Total Assets: Sept. 30th 2023 / Dec. 31st 2022
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$929,208
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$1,062,224
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-12.5
|
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Market Capitalization Nov. 10th/July 1st 2023
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$445,900
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$981,380
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-54.6
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* ‘+’ denotes improvement (or ‘less bad’)
NOTES:
R&D expenditure declined 32.1 percent from Q3 2022 to $9.1 million or 12.1 percent of revenue
S&G expenditure declined 2.2 percent from Q3 2022 to $53.3 million or 70.8 percent of revenue
For FY 2023:-
52-Week Range in Share Price: $22.87 to $5.58 50-day Moving average $8.56
Forward P/E: Neg. Beta 2.3
Insiders hold 9.2 percent of equity, Institutions 37.3 percent.
Comments:-
For the 2nd Quarter of 2023:
U.S. sales represented 57.2 percent and International 42.8 percent
Of U.S sales 70.8 percent were through retail channels, down from 74.3 percent in Q3 2022
Of U.S sales 29.1 percent were through food service channels, up from 25.7 percent in Q3 2022
Average unit revenue in Q2 2023 for all sales attained $4.19/lb. compared to $4.74/lb.
during the corresponding quarter of 2022.
Guidance for FY 2023 included:
Net revenue of between $330 and $340 million, approximately 20 percent below
FY2022
Gross margin at breakeven
Continued negative cash flow
In commenting on results Ethan Brown president and CEO stated:- “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.”
Despite this optimistic commentary the reality includes:-
- An accumulated deficit of $926,143 million.
- Trailing 12-month negative operating cash flow of $129 million
- Inventory of $194,570 represents 2.6 times Q3 sales
- Effective October 30th1 percent of float was short
- Share price off 54.6 percent over past 12 months
- Institutional holdings declined from 63 percent to 37 percent over past year.