In a press release dated May 8th Beyond Meat Inc. (BYND) announced results for the 1st Quarter ending March 30th 2023. The Company beat a consensus revenue projection of $75.2 million but loss exceeded the anticipated $(43.1) million. BYND fell 13.5 percent in after-hours trading following the release attributed to the wider loss and a weak forecast.
The following table summarizes the results for the period compared with the values for the corresponding quarter of the previous fiscal year (Values expressed as US$ x 1,000 except EPS)
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1st Quarter Ending:
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March 30th 2024
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April 1st 2023
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Difference (%)
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|
Sales:
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$75,603
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$92,236
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-18.0
|
|
Gross profit /(loss):
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$3,668
|
$6,185
|
-40.9
|
|
Operating income/ (loss):
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$(53,474)
|
$(57,721)
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+7.4*
|
|
Pre-tax Income/ (loss)
Net Income/ (loss)
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$(54,366)
$(54,361)
|
$(55,002)
$(59,037)
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+1.2*
+8.0*
|
|
Diluted earnings per share:
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$(0.84)
|
$(0.92)
|
+7.9*
|
|
Gross Margin (%)
|
4.9
|
6.7
|
-26.8
|
|
Operating Margin (%)
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-70.7
|
-62.5
|
-13.1
|
|
Profit Margin (%)
|
-71.9
|
-64.0
|
-12.3
|
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Long-term Debt: March 30th ‘24 / Dec. 31st ‘23
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$1,217,638
|
$1,213,464
|
-0.3
|
|
12 Months Trailing:
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|
|
|
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Return on Assets (%)
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-18.1
|
|
|
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Return on Equity (%)
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N/A
|
|
|
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Operating Margin (%)
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-70.7
|
|
|
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Profit Margin (%)
|
-102.0
|
|
|
|
Total Assets: March 30th ‘24 / Dec. 31st 2023
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$735,026
|
$774,450
|
-5.1
|
|
Market Capitalization May 10th ‘24/July1st 2023
|
$464,000
|
$1,040,000
|
-55.3
|
* ‘+’ denotes improvement (or ‘less bad’)
NOTES:
R&D expenditure declined 67 percent from Q1 2023 to $9.9 million or 13 percent of revenue
S&G expenditure declined 9.7 percent from Q1 2023 to $47.3 million or 65 percent of revenue
For Q1 FY 2024:-
52-Week Range in Share Price: $19.25 to $5.58 50-day Moving average $7.54
Forward P/E: Neg. Beta 2.4
Insiders hold 9.2 percent of equity, Institutions 37.3 percent.
Comments:-
For Q1 2024:
U.S. sales represented 65.3 percent and International 34.7 percent
Of U.S sales 75.1 percent were through retail channels, unchanged from Q1 2023
Of International sales 48.0 percent were through retail channels, up from 42.8 percent in Q1 2023
Average unit revenue in Q1 2024 for all sales attained $4.56/lb. compared to $4.67/lb.
during the corresponding quarter of 2023.
Guidance for FY 2023 included:
Net revenue of between $315 and $345 million.
Gross margin of mid- to high ‘teens.
Operating expenses $170 to $190 million
Capital expenditure $15 to $20 million
Continued negative cash flow
In commenting on results Ethan Brown president and CEO stated:- “In Q1, we made solid progress against our 2024 priorities, including: hitting our first quarter revenue objective; reducing operating expenses and cash consumption year-over-year; bringing production in-house to reduce costs and improve quality; and commencing shipments of Beyond IV, the fourth generation of Beyond Burger and Beyond Beef, to our customers, to the praise of nutritionists and consumers alike.”
Brown concluded “Together with measures we are exploring to bolster our balance sheet, we continue to work to position 2024 as a pivotal year as we strive to achieve sustainable and profitable operations.”
Despite this optimistic commentary the reality includes:-
- An accumulated deficit of $1,135,614 million.
- Trailing 12-month negative operating cash flow of $97.5 million
- Inventory of $122,538 represents 1.6 times Q1 FY 2024 sales
- Effective October 30th 45.1 percent of float was short
- Share price of $7.15 on May 8th off 62.8 percent over past 12-month high of $19.25
- Institutional holdings declined from 63 percent to 37 percent over past year.