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Sep 30, 2023
Beyond Meat Q3 2023 Earnings Report
Beyond Meat experienced a decrease in net revenues and a net loss, but gross margin improved due to lower manufacturing and materials costs. The company is undergoing a global operations review to reduce operating expenses.
Key Takeaways
Beyond Meat reported a decrease in net revenues by 8.7% year-over-year, with net revenues of $75.3 million. The company experienced a net loss of $70.5 million, an improvement compared to the previous year's net loss of $101.7 million. Gross profit was a loss of $7.3 million, but gross margin improved to -9.6% compared to -18.0% in the year-ago period.
Net revenues decreased by 8.7% year-over-year to $75.3 million.
Gross profit was a loss of $7.3 million, with a gross margin of -9.6%.
Net loss improved to $70.5 million, or $1.09 per share, compared to $101.7 million, or $1.60 per share, in the year-ago period.
International retail channel net revenues increased 38.8% to $14.2 million.
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 is revising its 2023 full year outlook due to softer than anticipated third quarter results and updated expectations for the balance of the year.
Positive Outlook
- Operating expenses are expected to be approximately $245 million or less, before one-time separation costs and potential savings associated with the Company’s recent reduction in force.
- Capital expenditures are now expected to be in the range of $10 million to $15 million.
- Reduction in force, combined with the elimination of certain open positions, is expected to result in approximately $9.5 million to $10.5 million in cash operating expense savings.
- Additional approximately $1.0 million to $2.0 million in non-cash savings related to previously granted, unvested stock-based compensation which would have vested in 2024.
- Gross profit for the full year, 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 now expected to be approximately breakeven.
Challenges Ahead
- Net revenues are now expected to be in the range of $330 million to $340 million, representing a decrease of approximately 21% to 19% compared to 2022.
- The Company currently estimates that it will incur one-time cash charges of approximately $2.0 million to $2.5 million in connection with the reduction in force
- Macroeconomic issues, including inflation and rising interest rates
- Prolonged, weakening demand in the plant-based meat category
- Ongoing concerns about the likelihood of a recession
Revenue & Expenses
Visualization of income flow from segment revenue to net income