On August 7, 2024, Beyond Meat Inc (BYND, Financial) released its 8-K filing detailing its financial results for the second quarter ended June 29, 2024. Beyond Meat Inc is a provider of plant-based meat products, offering a portfolio that includes burgers, sausage, ground beef, jerky, meatballs, and chicken. The company generates revenue from sales across various channels, including grocery stores, restaurants, and schools, primarily in the United States.
Key Financial Metrics
Beyond Meat Inc reported net revenues of $93.2 million for Q2 2024, an 8.8% decrease from $102.1 million in the same period last year. Despite the revenue decline, the company achieved a gross profit of $13.7 million, significantly up from $2.3 million in Q2 2023. The gross margin improved to 14.7% from 2.2% year-over-year.
Loss from operations narrowed to $33.9 million, compared to $53.8 million in the year-ago period. Net loss also decreased to $34.5 million, or $0.53 per share, from $53.5 million, or $0.83 per share, in Q2 2023. Adjusted EBITDA showed a loss of $23.0 million, improving from a loss of $40.8 million in the same quarter last year.
Revenue Breakdown by Channel
| Channel | Q2 2024 | Q2 2023 | Change (%) |
|---|---|---|---|
| U.S. Retail | $44.9 million | $48.5 million | -7.5% |
| U.S. Foodservice | $10.4 million | $12.8 million | -18.9% |
| International Retail | $17.6 million | $20.0 million | -12.1% |
| International Foodservice | $20.4 million | $20.9 million | -2.5% |
Challenges and Achievements
The decline in net revenues was primarily driven by a 14.0% decrease in the volume of products sold, partially offset by a 6.1% increase in net revenue per pound. The U.S. retail channel saw a 23.2% decrease in volume, reflecting weak category demand and the lapping of substantial promotional sales from the previous year. International retail also faced a 12.1% decline due to reduced sales of chicken products in the EU and demand softness in certain regions.
Despite these challenges, Beyond Meat Inc managed to improve its gross margin significantly, thanks to decreased cost of goods sold and increased net revenue per pound. Operating expenses were reduced to $47.6 million from $56.0 million in Q2 2023, primarily due to lower marketing expenses and reduced non-production salaries.
"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," said Ethan Brown, President and CEO of Beyond Meat Inc.
Balance Sheet and Cash Flow
As of June 29, 2024, Beyond Meat Inc had cash and cash equivalents, including restricted cash, of $158.0 million. Total outstanding debt stood at $1.1 billion. Net cash used in operating activities was $47.8 million for the first six months of 2024, compared to $88.3 million in the same period last year. Capital expenditures totaled $2.5 million, down from $7.1 million in the year-ago period.
Analysis and Outlook
Beyond Meat Inc's Q2 2024 results show a mixed performance. While the company managed to narrow its losses and improve gross margins, the decline in revenue and volume of products sold indicates ongoing challenges in market demand. The company's efforts to reduce operating expenses and improve cash flow are positive steps towards achieving sustainable operations and profitability.
For the full year 2024, Beyond Meat Inc expects net revenues to be in the range of $320 million to $340 million, with a gross margin in the mid-teens range. Operating expenses, excluding a $7.5 million expense related to a consumer class action settlement, are expected to be between $180 million and $190 million.
Investors and stakeholders will be closely watching how Beyond Meat Inc navigates these challenges and leverages its innovations to drive future growth.
Explore the complete 8-K earnings release (here) from Beyond Meat Inc for further details.
