Beyond Meat(US:BYND)2025-05-07 22:02Financial Data and Key Metrics Changes - In Q1 2025, net revenues decreased by 9.1% to $68.7 million compared to $75.6 million in the same period last year, primarily due to an 11.2% decrease in volume sold, partially offset by a 2.4% increase in net revenue per pound [18][19] - Gross profit was a loss of $1.1 million, resulting in a gross margin of negative 1.5%, compared to a gross profit of $3.7 million and a gross margin of 4.9% in the prior year [25][26] - Net loss was $52.9 million in Q1 2025, compared to a net loss of $54.4 million in the same period last year, with net loss per share at $0.69 compared to $0.84 [28][29] Business Line Data and Key Metrics Changes - U.S. Retail channel net revenues decreased by 15.4% to $31.4 million, driven by a 23.2% decrease in volume sold, partially offset by a 10% increase in net revenue per pound [20][21] - U.S. Foodservice net revenues decreased by 23.5% to $9.4 million, primarily due to a 22% decrease in volume sold and a 2% decrease in net revenue per pound [23] - International retail channel net revenues increased by 0.8% to $12.7 million, driven by a 10.3% increase in net revenue per pound, despite an 8.6% decrease in volume sold [24] Market Data and Key Metrics Changes - Consumption data indicated a progressive weakening in U.S. retail takeaway during Q1 2025, contributing to weaker shipments than expected [21] - International foodservice channel net revenues increased by 12.1% to $15.3 million, primarily due to a 13.5% increase in volume sold [25] Company Strategy and Development Direction - The company aims to achieve EBITDA positive on a run rate basis by the end of 2026, focusing on reducing operational expenses and optimizing manufacturing towards margin objectives [10][32] - A new marketing campaign, "Real People, Real Results," is being launched to improve consumer perception and drive demand for plant-based products [14][15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that Q1 2025 was disappointing due to worsening category and macroeconomic conditions impacting top-line recovery [5][6] - The company has withdrawn its full-year guidance due to elevated uncertainty in the operating environment, limiting revised outlook to Q2 net revenue expectations of $80 million to $85 million [32][66] Other Important Information - The company closed a financing facility providing up to $100 million in new senior secured debt, which will help support strategic priorities and liquidity [16][30] - The company is focusing on dispelling misinformation about its products and enhancing consumer understanding of the benefits of plant-based diets [13][41] Q&A Session Questions and Answers Question: What potential initiatives could be taken to stabilize the top line in the U.S. market? - Management indicated that restoring distribution lost due to product transitions and improving consumer perception through marketing efforts are key initiatives [37][39] Question: Can more details be shared about the financing agreement of the $100 million? - The financing facility has an initial term of approximately five years with an interest rate of 12% for drawdowns, increasing to 17.5% after the maturity date [45][46] Question: What is the outlook regarding tariffs and demand uncertainty? - Management noted that while there are discussions around tariffs, the direct impact on the business is considered minimal, but consumer confidence remains a concern [68][70]