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Dec 31, 2022
Beyond Meat Q4 2022 Earnings Report
Beyond Meat's financial performance declined in Q4 2022, with revenue and gross profit decreasing year-over-year, but the company is making progress in its transition to a sustainable growth model.
Key Takeaways
Beyond Meat reported a decrease in net revenues by 20.6% to $79.9 million in Q4 2022, with a gross loss of $2.9 million. The company's net loss was $66.9 million, or $1.05 per common share. Despite these challenges, Beyond Meat is focused on margin recovery, operating expense reduction, and inventory management to achieve cash flow positive operations in the second half of 2023.
Net revenues decreased by 20.6% year-over-year to $79.9 million.
Gross profit was a loss of $2.9 million, with a gross margin of -3.7%.
Net loss was $66.9 million, or $1.05 per common share.
The company is targeting cash flow positive operations in the second half of 2023 through margin recovery and expense reduction.
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's operating environment continues to be affected by near-term uncertainty related to macroeconomic issues. Net revenues are expected to be in the range of approximately $375 million to $415 million. Gross margin is expected to be in the low double-digit range, increasing sequentially throughout the year. Operating expenses are expected to be approximately $250 million. Capital expenditures are expected to be in the range of $30 million to $35 million. The Company continues to target achievement of cash flow positive operations within the second half of 2023.
Positive Outlook
- Gross margin is expected to be in the low double-digit range, increasing sequentially throughout the year.
- Operating expenses are expected to be approximately $250 million, weighted slightly more towards the first half of the year.
- Capital expenditures are expected to be in the range of $30 million to $35 million.
- The Company continues to target achievement of cash flow positive operations within the second half of 2023.
- The company is in the process of restructuring certain operating activities related to Beyond Meat Jerky.
Challenges Ahead
- Net revenues are expected to be in the range of approximately $375 million to $415 million, representing a decrease of approximately 10% to 1% compared to 2022.
- Operating environment continues to be affected by near-term uncertainty related to macroeconomic issues, including inflation and rising interest rates.
- Demand in the plant-based meat category.
- Increasing concerns about the likelihood of a recession.
- Increased competition, supply chain disruptions, challenges related to labor availability and, to a lesser extent, COVID-19 and its potential impact on consumer behavior and demand levels.
Revenue & Expenses
Visualization of income flow from segment revenue to net income