Benson Hill(US:BHIL)2022-03-28 16:01Financial Data and Key Metrics Changes - Revenue for 2021 grew by 47% year-over-year to $147 million, excluding the divested barley business [5][23] - Ingredients segment revenue reached $91 million, a 55% increase year-over-year, and a 104% increase when excluding the divested barley business [23] - Consolidated gross profit was a loss of just under $1 million, a decline of $12.9 million compared to 2020 [24] - Adjusted EBITDA was a loss of $80 million in 2021 [26] - For 2022, revenue is expected to be in the range of $315 million to $350 million, with gross margins projected between $9 million to $13 million [28][29] Business Line Data and Key Metrics Changes - The ingredients segment is expected to drive growth in 2022, with revenues projected between $250 million to $275 million [28] - Proprietary soy revenues are anticipated to nearly double to $70 million to $80 million, constituting about 30% of total ingredients revenue [28] - Fresh segment revenues are expected to recover to $65 million to $75 million in 2022 [28] Market Data and Key Metrics Changes - The aquaculture market is identified as a rapidly growing segment, with significant demand for high-protein soy products [14] - The company is positioned to capture a portion of the $245 billion total addressable market (TAM) in aquaculture, although specific capture rates remain uncertain [39] Company Strategy and Development Direction - The company aims to expand its proprietary product portfolio and capture market share through innovative solutions [19][20] - A focus on sustainability and traceability is emphasized, with plans to leverage data for carbon credit programs [8][46] - The acquisition of the Creston facility is seen as a strategic move to enhance production capabilities and control over the supply chain [16][35] Management's Comments on Operating Environment and Future Outlook - Management acknowledges inflationary pressures but believes current macro trends can serve as tailwinds for growth [25][15] - The company is optimistic about achieving EBITDA and free cash flow positivity by 2025 [18][30] - Management highlights the importance of adapting to market demands and geopolitical events to optimize production and sales strategies [60][62] Other Important Information - The company has a strong cash position with $183 million in cash and marketable securities at the end of 2021 [27] - A definitive agreement for a PIPE offering has raised $85 million in gross proceeds, strengthening the company's financial position [18] Q&A Session Summary Question: How have conversations with proprietary ingredients customers changed since the Creston facility acquisition? - Management noted that having the facility in-house has changed the dynamic of conversations, providing more assurance to customers regarding consistent food-grade material production [35] Question: Can you discuss the data advantage from the Creston acquisition? - The acquisition has expanded the range of product offerings and allowed for better data collection and feedback into the CropOS platform [37] Question: What unique feed conversion benefits does your product offer in aquaculture? - Management indicated that their products may offer better feed conversion ratios compared to incumbent products, with ongoing studies to validate these claims [39] Question: How should we think about the legacy revenue contribution from the Creston facility going forward? - Management expects to gradually shift from legacy revenues to proprietary ingredient solutions, aiming for a significant majority of capacity to be dedicated to proprietary products [43] Question: How relevant is the carbon capture initiative within the broader offering? - Management believes that while monetization of carbon credits is not currently accounted for, the initiative is integral to their mission and provides differentiation in the market [49]