Beyond Meat(BYND) - 2024 Q2 - Quarterly Results

Financial Performance - Net revenues for Q2 2024 were $93.2 million, a decrease of 8.8% year-over-year from $102.1 million[1][4] - Gross profit increased to $13.7 million with a gross margin of 14.7%, compared to a gross profit of $2.3 million and a margin of 2.2% in the prior year[1][13] - Loss from operations improved to $33.9 million, or -36.4% operating margin, compared to a loss of $53.8 million and -52.7% margin in the year-ago period[1][14] - Adjusted EBITDA loss was $23.0 million, or -24.7% of net revenues, an improvement from a loss of $40.8 million, or -40.0% of net revenues, in the prior year[2][15] - Net revenues for the three months ended June 29, 2024, were $93.185 million, a decrease of 8.8% compared to $102.149 million for the same period in 2023[33] - Gross profit for the six months ended June 29, 2024, was $17.385 million, up from $8.458 million in the same period of 2023, representing a significant improvement[33] - The net loss for the six months ended June 29, 2024, was $88.840 million, compared to a net loss of $112.542 million for the same period in 2023, showing a narrowing of losses[33] - Adjusted loss from operations for the three months ended June 29, 2024, was $(33,931) thousand, compared to $(53,754) thousand for the same period in 2023, reflecting a significant improvement[43] - Adjusted net loss for the three months ended June 29, 2024, was $(34,479) thousand, down from $(53,505) thousand in the prior year, indicating a reduction in losses[44] - Total net loss for the six months ended June 29, 2024, was $(88,840) thousand, compared to $(112,542) thousand for the same period in 2023, reflecting a reduction in overall losses[44] Revenue Channels - U.S. retail channel net revenues decreased by 7.5% to $44.9 million, driven by a 23.2% decrease in volume sold[5][9] - International retail channel net revenues decreased by 12.1% to $17.6 million, primarily due to a 6.9% decrease in net revenue per pound[7][9] Future Projections - The company expects full-year 2024 net revenues to be in the range of $320 million to $340 million[17] - Capital expenditures for 2024 are projected to be between $15 million and $20 million[17] Cash and Debt Management - The company's cash and cash equivalents were $158.0 million, with total outstanding debt of $1.1 billion as of June 29, 2024[16] - Total current assets decreased to $317.265 million as of June 29, 2024, down from $372.844 million at the end of 2023[34] - Cash and cash equivalents at the end of the period were $158.009 million, a decrease from $225.933 million at the end of the same period in 2023[35] - Total liabilities and stockholders' deficit as of June 29, 2024, were $711.234 million, down from $774.450 million at the end of 2023[34] - The company reported a net cash used in operating activities of $47.814 million for the six months ended June 29, 2024, compared to $88.336 million for the same period in 2023, indicating improved cash flow management[35] Operational Strategy - Beyond Meat is focusing on cost-reduction initiatives and narrowing its commercial focus to certain growth opportunities as part of its Global Operations Review initiated in November 2023[24] - The company has recently increased prices for certain products in its U.S. retail and foodservice channels to improve gross margins[24] - New product launches include the Beyond IV platform and the Beyond Sun Sausage line, aimed at expanding market share and revenues[24] - Beyond Meat is reviewing its operations in China and optimizing its manufacturing capacity and real estate footprint[24] - The company continues to focus on expanding its product offerings and market presence, leveraging social media for investor relations and product announcements[32] Market Challenges - The company is facing ongoing uncertainty related to macroeconomic issues, including high inflation and interest rates, which may impact demand in the plant-based meat category[23] - The company is experiencing challenges related to consumer confidence and spending patterns, which could affect sales velocity and market share[25] - Risks include potential impairment charges and the impact of economic conditions on the company's financial performance[25] - Beyond Meat's ability to attract and retain key strategic foodservice partners is crucial for maintaining market share and expanding distribution[26] - The company is committed to protecting its brand against misinformation and maintaining its reputation in the plant-based meat category[26] Research and Development - Research and development expenses decreased to $5.485 million for the three months ended June 29, 2024, from $8.773 million in the same period of 2023, indicating a reduction in R&D spending[33] Non-GAAP Financial Measures - The company emphasizes that non-GAAP financial measures, such as adjusted loss from operations and adjusted EBITDA, are useful for assessing ongoing operational performance and should not be viewed in isolation from GAAP measures[39]