Investments & Finance

Beyond Meat to Raise $200M in Equity Offering as Q1 Results Surpass Expectations

Beyond Meat has reported that it is seeking to raise up to $200 million in an equity offering for “general corporate and working capital purposes”.

The sales could be made at any time, either over the counter or negotiated privately. Goldman Sachs will be the sales agent.

The news comes after the company posted better-than-expected results for the first quarter of 2023, with a smaller loss and greater revenue than predicted by Wall Street. Net loss narrowed to $59 million, while net revenue was $92.2 million — $1.4 million greater than expected. Following the publication of the results, shares in Beyond rose by 11% in extended trading before paring gains.

Stronger revenue growth is now expected for the remainder of the year; Beyond’s food service sales almost doubled in Q1, due to partnerships with major outlets such as McDonalds. However, retail sales are still falling as consumers continue to struggle with inflation.

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Turnaround plan

It has been a difficult year for Beyond, with widened losses and decreased revenue in Q3 of 2022 as consumers opted for lower-priced products. However, Q4 results beat expectations, and the company’s stock reached its highest point in 52 weeks on the Frankfurt Stock Exchange last month.

Beyond is currently enacting a turnaround plan, with the aim of being cash-flow positive by the second half of the year. The company has increased automation in production, cut jobs, and strengthened its sourcing network to cut costs.

Last year, CEO Ethan Brown said he was still positive about the future of the company.

“I want to emphasize the transition that’s occurring in Europe with the consumer,” he said. “If you look at Germany, over the last 10 years, there’s been a remarkable reduction in animal protein consumption on a per capita basis. And I think that bodes very well for what we’ll see in the United States at some point.”

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