Welcome to Market Catalyst. I'm Julie Hyman. We are 30 minutes into the US trading day.Let's get to the three market catalyst we're watching this hour. First up, a government shutdown looms in Washington. We'll break down the implications for the economy and for investors.Plus, we'll push ahead to the September jobs report due out at the end of the week. and EA strikes a $55 billion deal to go private. We'll discuss that and much more on Market Catalyst.Well, let's first start with the major averages and wh ...

Financial Data and Key Metrics Changes - For the full year 2024, the company generated $326.5 million in net revenues, down 4.9% compared to 2023, but the rate of decline slowed significantly compared to previous years [11][12] - Gross margin for the full year reached 12.8%, while COGS per pound was $4.07, approximately $0.40 or 9% lower than 2023 [12][13] - In Q4 2024, net revenues increased 4% year-over-year to $76.7 million, with gross margin improving to 13.1% [15][27] Business Line Data and Key Metrics Changes - U.S. retail net revenues increased 5.7% to $33.9 million in Q4 2024, driven by a 10.6% increase in net revenue per pound, despite a 4.5% decrease in volume sold [28] - U.S. foodservice net revenues decreased 2.1% to $10.5 million, primarily due to an 11% decrease in volume sold [30] - International retail net revenues decreased 1.7% to $13.1 million, while international foodservice net revenues increased 9.2% to $19.3 million [31][32] Market Data and Key Metrics Changes - In France, 68% of the population is reducing meat consumption, and 27% regularly incorporates plant-based alternatives [17] - The company launched Beyond Steak in retail in France, expanding its presence in the EU market [17] - The introduction of new products in various European markets, such as Smash Burgers at Tesco UK, indicates growth opportunities [18] Company Strategy and Development Direction - The company aims to achieve EBITDA positive operations by the end of 2026, focusing on four key goals for 2025: comparable year-over-year net revenues, improving gross margin to approximately 20%, further reducing operating expenses, and strengthening the balance sheet [19][20][25] - The company plans to stabilize and optimize internal production processes while making targeted investments in equipment and automation to support gross margin expansion [22][88] - The strategic focus includes expanding health-related products and marketing, as well as regaining distribution in key channels [21][22] Management's Comments on Operating Environment and Future Outlook - Management noted that the past year marked an important inflection point, with two consecutive quarters of year-over-year net revenue growth after a prolonged decline [8] - The company remains optimistic about the long-term trends in plant-based meat consumption, despite current market challenges [60][71] - Management emphasized the importance of educating consumers about the benefits of plant-based products to counteract misinformation [70][126] Other Important Information - The company reduced operating expenses by over $50 million in 2024, contributing to a nearly $100 million year-over-year improvement in adjusted EBITDA [11][14] - Cash and cash equivalents totaled $145.6 million as of December 31, 2024, with total outstanding debt at $1.1 billion [38] - The company generated net proceeds of approximately $46.7 million through its ATM program in Q4 2024 to support business investments [39] Q&A Session Summary Question: Consumer perception and market dynamics - Management noted that the increase in U.S. retail prices did not significantly impact volume sold, indicating a positive consumer response to clean and simple product offerings [49][50] Question: Impact of China operations suspension - Management clarified that the conservative revenue guidance accounts for the suspension of operations in China, emphasizing a focus on achieving EBITDA positive goals [52][55] Question: Core consumer demographics - The company is increasingly targeting health-oriented consumers, with a strong interest in their products despite challenges from misinformation [58][61] Question: Gross margin outlook for 2025 - Management expressed confidence in achieving gross margin improvements through stabilized production processes and incremental investments [78][88] Question: Sales momentum and distribution gains - Management indicated that while Q1 guidance is conservative, positive trends are expected to continue throughout the year [99][102] Question: Price parity with animal meat - The company has achieved price parity in specific product lines and continues to pursue this goal, particularly in foodservice [112][114] Question: Growth rates in Europe vs. U.S. - Management noted that Europe shows varied growth rates, with consumers more motivated by climate concerns, while the U.S. market faces challenges [118][120]