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Jul 01, 2023
Beyond Meat Q2 2023 Earnings Report
Beyond Meat's Q2 2023 performance was marked by mixed results, with revenue decline offset by operational efficiency gains.
Key Takeaways
Beyond Meat reported a 30.5% decrease in net revenues to $102.1 million for Q2 2023, driven by weak category demand and a decrease in volume of products sold. However, the company saw improvements in gross profit and reductions in operating expenses and cash consumption.
Net revenues decreased by 30.5% year-over-year to $102.1 million.
Gross profit improved to $2.3 million, with a gross margin of 2.2%.
Net loss decreased to $53.5 million, or $0.83 per share, compared to $97.1 million in the year-ago period.
The company expects a modest return to year-over-year top-line growth in the third and fourth quarters of 2023.
Beyond Meat
Beyond Meat
Beyond Meat Revenue by Segment
Revenue by Segment
U.S. Retail Revenue
CapyFin.comU.S. Foodservice Revenue
CapyFin.comInternational Retail Revenue
CapyFin.comInternational Foodservice Revenue
CapyFin.com Forward Guidance
The Company expects net revenues to be in the range of approximately $360 million to $380 million, representing a decrease of approximately 14% to 9% compared to 2022. Gross margin is expected to be in the mid to high single-digit range. Operating expenses are expected to be $245 million or less. Capital expenditures are expected to be in the range of $20 million to $25 million.
Positive Outlook
- Gross margin, including the positive impact of the Company’s change in accounting estimates for the useful lives of its large manufacturing equipment implemented in the first quarter of 2023, is expected to be in the mid to high single-digit range.
- Operating expenses are expected to be $245 million or less.
- Capital expenditures are expected to be in the range of $20 million to $25 million.
- Management remains firmly focused on achieving cash flow positive operations, including increased cost containment.
- The company expects meaningfully reduced cash consumption for the balance of the year.
Challenges Ahead
- Net revenues are expected to be in the range of approximately $360 million to $380 million, representing a decrease of approximately 14% to 9% compared to 2022.
- The Company's operating environment continues to be affected by uncertainty related to macroeconomic issues, including softer demand in the plant-based meat category, high inflation, rising interest rates, and ongoing concerns about the likelihood of a recession.
- Softer demand in the plant-based meat category
- High Inflation
- Rising interest rates, and ongoing concerns about the likelihood of a recession
Revenue & Expenses
Visualization of income flow from segment revenue to net income