In a press release dated August 7th Beyond Meat Inc. (BYND) announced results for Q2 ending June 29th 2024. The Company incurred a higher EPS loss than consensus ($0.46) but beat the Zack’s revenue projection by 4.4 percent. BYND rose fractionally on the August 8th post-release market open but finished up 24.6 percent on a decidedly up-day for the market.
The following table summarizes the results for the period compared with the values for the corresponding quarter of the previous fiscal year (Values expressed as US$ x 1,000 except EPS)
|
2nd Quarter Ending:
|
June 29th 2024
|
July 1st 2023
|
Difference (%)
|
|
Sales:
|
$93,185
|
$102,149
|
-8.8
|
|
Gross profit /(loss):
|
$13,717
|
$2,273
|
+503.3
|
|
Operating income/ (loss):
|
$(33,931)
|
$(53,754)
|
+36.8*
|
|
Pre-tax Income/ (loss)
Net Income/ (loss)
|
$(34,483)
$(34,479)
|
$(52,997)
$(53,505)
|
+34.9*
+35.6*
|
|
Diluted earnings per share:
|
$(0.53)
|
$(0.83)
|
+36.1*
|
|
Gross Margin (%)
|
14.7
|
2.2
|
+568.2*
|
|
Operating Margin (%)
|
-36.4
|
-52.6
|
+30.8*
|
|
Profit Margin (%)
|
-37.0
|
-52.3
|
+29.3*
|
|
Long-term Debt: June 29th ‘24 / Dec. 31st ‘23
|
$1,217,741
|
$1,213,464
|
-0.4
|
|
12 Months Trailing:
|
|
|
|
|
Return on Assets (%)
|
-17.0
|
|
|
|
Return on Equity (%)
|
N/A
|
|
|
|
Operating Margin (%)
|
-36.4
|
|
|
|
Profit Margin (%)
|
-99.0
|
|
|
|
Total Assets: June 29th ‘24 / Dec. 31st 2023
|
$711,234
|
$774,450
|
-8.2
|
|
Market Capitalization May 10th ‘24/July1st 2023
|
$340,640
|
$619,390
|
-45.0
|
* ‘+’ denotes improvement (or ‘less bad’)
NOTES:
R&D expenditure declined 37 percent from Q2 2023 to $5.4 million or 5.9 percent of revenue
S&G expenditure declined 11 percent from Q2 2023 to $42.2 million or 45.2 percent of revenue
For Q2 FY 2024:-
52-Week Range in Share Price: $13.10 down to $5.13 50-day Moving average $6.66
Forward P/E: Neg.
Insiders hold 4.9 percent of equity (was 9.2, Q1 2024), Institutions 47.9 percent (was 37.3 percent, Q1 2024).
Comments for Q2 2024:-
U.S. sales represented 59.3 percent and International 40.7 percent
Of U.S sales 81.3 percent were through retail channels, compared to 70.2 percent in Q2 2023
Of International sales 46.3 percent were through retail channels, down from 48.9 percent in Q2 2023
Average unit revenue in Q2 2024 for all sales attained $4.73/lb. compared to $4.46/lb.
during the corresponding quarter of 2023.
Guidance for FY 2024 included:
Net revenue of between $320 and $340 million.
Gross margin in mid-‘teens’.
Operating expenses $180 to $190 million
Capital expenditure $15 to $20 million
Continued negative cash flow
In commenting on results Ethan Brown president and CEO stated:- “We are pleased to report a strong quarter of progress against our 2024 plan, a pivotal year on our path to sustainable operations and profitability. Key proof points include exceeding our Q2 revenue guidance; continued reduction in operating expenses and cash consumption; and our best quarterly gross margin since Q3 2021.
He added "Further, we firmly reiterated our center-of-the-plate position in the global health and wellness trend with the launch of our Beyond IV platform. Developed in collaboration with leading medical and nutrition experts, and recognized by the nation’s leading health organizations, we are thrilled to see consumer, media, and nutritionist enthusiasm for this latest, important, renovation.”
Brown concluded, “Finally, alongside the strengthening of our operations and product portfolio, we are working on bolstering our balance sheet.”
Despite this optimistic commentary the reality includes:-
- An accumulated deficit of $1,170,093 million.
- An 8.8 percent decline in revenue for Q2
- Trailing 12-month negative operating cash flow of $67.3 million
- Inventory of $119,532 represents 1.3 times Q2 FY 2024 sales
- Effective July 15th 38 percent of float was short
- Share price of $5.57 on May 8th open, 57 percent off 12-month high of $13.10