Yahoo Finance Beyond Meat Inc (BYND) Q1 2024 Earnings: A Detailed Financial Review
Revenue: Reported at $75.6 million, down 18.0% year-over-year, slightly above estimates of $75.24 million.
Net Loss: Recorded at $54.4 million, an improvement from the previous year's $59.0 million, but still above the estimated net loss of $43.06 million.
Earnings Per Share (EPS): Posted a loss of $0.84 per share, an improvement from the prior year's loss of $0.92 per share, yet above the estimated loss of $0.67 per share.
Gross Margin: Declined to 4.9% from 6.7% year-over-year, indicating increased cost pressures.
Operating Expenses: Decreased to $57.1 million from $63.9 million in the year-ago period, reflecting cost control measures.
Adjusted EBITDA: Reported a loss of $32.9 million, showing an improvement from a loss of $45.8 million in the previous year.
Outlook for 2024: Reaffirmed revenue expectations between $315 million and $345 million, with anticipated improvements in gross margin in the latter half of the year.
On May 8, 2024, Beyond Meat Inc (NASDAQ:BYND) released its financial results for the first quarter ended March 30, 2024, through an 8-K filing. The plant-based meat company reported a decline in net revenues and a slight narrowing of net losses compared to the previous year, reflecting ongoing challenges in the sector.
Company Overview
Beyond Meat Inc is a pioneer in the plant-based meat industry, offering a variety of products designed to replicate the taste and texture of animal-based meat. With a focus on sustainability and health, their product range includes burgers, sausages, ground beef, and more. Beyond Meat primarily serves customers in the U.S. through various channels including grocery stores, mass merchandisers, and foodservice providers.
Financial Performance
The first quarter of 2024 saw Beyond Meat's net revenues decrease by 18.0% year-over-year to $75.6 million, down from $92.2 million. This decline was attributed mainly to a 16.1% decrease in the volume of products sold and a 2.3% drop in net revenue per pound, influenced by increased trade discounts and some pricing adjustments.
Gross profit for the quarter stood at $3.7 million, or a gross margin of 4.9%, compared to $6.2 million, or a gross margin of 6.7% in the previous year. The decrease in gross margin was primarily due to higher manufacturing costs and the reduced volume of products sold.
Operating expenses decreased to $57.1 million from $63.9 million, reflecting reduced non-production headcount and marketing expenses. However, loss from operations was $53.5 million, a slight improvement from a loss of $57.7 million in the year-ago period. This was partially offset by a $7.5 million accrual for a consumer class action settlement.
Net loss for the quarter was $54.4 million, or $0.84 per common share, improving from a net loss of $59.0 million, or $0.92 per common share in the previous year. Adjusted net loss, which excludes certain one-time costs, was $46.9 million, or $0.72 per diluted common share.
Balance Sheet and Cash Flow Highlights
As of March 30, 2024, Beyond Meat reported cash and cash equivalents of $173.5 million. The total outstanding debt was significantly higher at $1.1 billion. Net cash used in operating activities was $31.8 million for the quarter, an improvement over $42.2 million used in the prior year.
2024 Outlook and Strategic Focus
Despite the challenging quarter, Beyond Meat reaffirmed its full-year revenue outlook, expecting net revenues to be between $315 million and $345 million. The company aims to improve gross margins and manage operating expenses more effectively throughout the year.
"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," stated Ethan Brown, President and CEO of Beyond Meat.
The company's strategy includes enhancing product offerings and operational efficiencies to navigate through the ongoing economic pressures and competitive landscape. This approach is crucial as the plant-based meat sector continues to evolve amid fluctuating consumer demand and economic uncertainties.
Conclusion
Beyond Meat's first quarter of 2024 reflects a company in transition, working to adapt to market dynamics and internal challenges. While revenue has declined, efforts to streamline operations and innovate product lines demonstrate a forward-looking approach to stabilizing and eventually growing the business in a competitive industry.
Explore the complete 8-K earnings release (here) from Beyond Meat Inc for further details.
This article first appeared on GuruFocus.
